HELOC vs. Solar Loan

What homeowners should know

Compare variable-rate home-equity borrowing with solar-specific financing. A HELOC uses home equity and often has a variable interest rate, so payment and rate risk should be reviewed carefully.

What to compare

Use written documents and compare the same fields across options. Separate equipment, financing, utility assumptions, warranties and any roof or electrical work so one number does not hide important differences.

A practical next step

Verify the current rules with the relevant utility, government agency, lender or contract documents before relying on a savings or eligibility claim. Keep copies of the proposal, agreement, plans, warranties and approvals.

Questions worth asking

• What assumptions are being used?
• What is included and excluded in writing?
• Who is responsible if something changes?
• Which current utility, lender or government rule applies?