What Credit Score Do You Need for Solar Panels?

What credit score do you need to finance solar?

Less than many homeowners expect. The financing programs Evergreen Solar offers generally look for a credit score of 650 or higher, and some programs accept scores as low as 620.

For context, Experian’s ranges for the base FICO score put 580 to 669 in the fair band and 670 to 739 in the good band. A score of 650 sits inside fair credit, so a few late payments in your past don’t rule solar out.

The score isn’t the only thing a lender looks at. The Consumer Financial Protection Bureau explains that scoring models weigh your history of paying on time, how much debt you carry, how much of your available credit you use, how long your accounts have been open, and how many new applications you’ve made recently. Lenders also look at your income and your other monthly payments.

That last point works in solar’s favor. When a solar payment replaces part of what you already pay the electric company, the change to your monthly budget can be small. It still counts as a new payment on paper, so lenders weigh it against your income like any other.

How does each way to pay use your credit?

Credit matters most when someone else is paying for the system up front and trusting you to pay it back over time. Here’s how it plays out for each option. Our guide to how to pay for solar explains the options themselves.

With a loan, a higher score usually earns a lower rate, and the rate shapes your monthly payment for years. Our article on solar loan rates covers how to compare the offers. A prepaid PPA works differently, because you pay for the system’s power once instead of making monthly payments.

Leases and PPAs check credit for a simple reason. The company that owns the panels pays for the equipment and installation, then counts on 20 to 25 years of payments from you to earn that back. Your score is how it judges whether those payments will come in.

What are your options with a lower credit score?

If your score is below 620 today, you still have real paths to solar:

• Pay cash. There’s no credit requirement, and you keep every dollar of the bill savings and owner incentives.
• Add a co-applicant. A spouse or another person with stronger credit can apply with you. Be clear about what that means for them: the Federal Trade Commission notes that a cosigner agrees to be responsible for the debt, has to make the payments if you don’t, and may see the loan on their own credit report.
• Improve your score first. Steady on-time payments and lower balances raise a score over time. The next section covers how.

It’s worth knowing where your score stands before you talk to anyone. Many banks and card issuers show your score in their app, and you can check your credit reports yourself without affecting your score.

How can you raise your credit score before going solar?

The factors the Consumer Financial Protection Bureau lists are the same ones you can work on. The steps that tend to help fastest:

1. Pay every bill on time. Payment history carries the most weight, and a run of on-time payments starts to offset older late ones.
2. Pay down card balances. Using less of your available credit can help your score once the lower balances are reported.
3. Hold off on new applications. Each new credit application can cost a few points for a while.
4. Check your reports for errors. A debt that isn’t yours or a payment marked late by mistake can be disputed with the credit bureau.
5. Keep older accounts open. The length of your credit history counts, so closing an old card can work against you.

Will checking your solar financing options hurt your credit?

Not necessarily. Experian explains the difference between two kinds of credit checks. A soft inquiry, such as checking your own score or a prequalification, doesn’t affect your score. A hard inquiry happens when you formally apply for credit, and it can lower your score by a few points for a short time.

Before any lender runs your credit, ask which kind of check it is. If you’re comparing several financing offers, keep the applications close together so you aren’t adding inquiries over months.

Should you trust “no credit check” solar offers?

Be careful. Someone always pays for the panels up front, and an offer that skips the credit check often makes up the risk somewhere else in the price. In its 2024 report on solar financing, the Consumer Financial Protection Bureau found hidden markups that can raise a loan’s principal by 30% or more above the cash price, monthly payments that jump later in the loan, and exaggerated savings claims.

The protection is simple. Ask for the cash price and the financed price of the same system, read the payment schedule for every year of the contract, and compare the total you’ll pay over the whole term. When we price a system, we show every way to pay on the same design so you can see those numbers side by side. Our guide to choosing how to pay lists the questions that sort a fair offer from an expensive one.

What if your credit improves after you go solar?

A score that qualifies you today doesn’t lock you into today’s terms forever, as long as the contract allows changes. Before you sign a solar loan, ask whether you can pay it off early without a penalty. If you can, a better score later may let you refinance at a lower rate, or pay the balance down when you have the cash.

Leases and PPAs work differently, because the company owns the system. Your payment is set by the contract, not your credit, so an improving score doesn’t change it. Some contracts include an option to buy the system later. Evergreen Solar’s prepaid PPA, for example, has a buyout option to take ownership after five years. Ask what the options are in any contract before you sign, and read our guide on selling a house with solar if a move is in your plans.

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