What is a solar loan dealer fee?

CFPB describes it as a fee a lender charges the installer to offer a loan, which may be passed into the consumer's financed project price rather than shown as a separate line.

Is the lowest APR always the cheapest solar loan?

No. Compare financed principal, fees, payment schedule, term, finance charge, total of payments, and the identical cash-price alternative.

How can I find a hidden financing markup?

Request cash and financed prices for the same scope, calculate the difference, and ask the parties to explain it in writing alongside the lender's required disclosures.

Solar Loan Dealer Fees: Compare Cash and Financed Prices

A low advertised APR can accompany a higher financed project price, so compare price and credit terms together.

Published by Solar Quote Checker Editorial Team · Last verified July 23, 2026

CFPB research describes dealer fees that lenders may charge installers and that can be passed into the consumer's financed project price. The homeowner may not see a line labeled dealer fee, which is why the cash-versus-financed comparison matters.

Calculate the cash-to-financed difference

Request a cash price for the identical scope and compare it with the amount financed. Subtract the cash price from the financed project price, then ask for a written explanation of every difference. Do not assume the entire difference is one fee; scope, promotions, or other charges may also differ.

CFPB's issue spotlight reports that dealer fees are often 10% to 30% of the cash price and can exceed 50%. That is a regulatory research finding, not an estimate for any particular loan.

Compare the full loan, not only APR

Record amount financed, APR, finance charge, term, payment schedule, total of payments, prepayment terms, and any expected payment change. Regulation Z disclosures for covered credit transactions are designed to put key cost fields in a comparable form.

Compare identical system scope and equipment.
Ask whether the project price changes with the loan product.
Model the payment without assuming a tax refund or incentive contribution.
Compare early payoff and full-term scenarios.

Questions to ask before accepting the loan

Ask the installer for the cash price, the lender for complete disclosures, and both parties whether compensation or fees affect the project price. Save each version of the quote so a change in price, equipment, or term is visible.

Primary sources

Consumer Financial Protection Bureau: Issue Spotlight: Solar FinancingRetrieved 2026-07-23
Consumer Financial Protection Bureau: 12 CFR § 1026.18 — Content of disclosuresRetrieved 2026-07-23
U.S. Department of Energy: Homeowner's Guide to Solar Financing: Leases, Loans and PPAsRetrieved 2026-07-23

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Frequently asked questions

What is a solar loan dealer fee?: CFPB describes it as a fee a lender charges the installer to offer a loan, which may be passed into the consumer's financed project price rather than shown as a separate line.
Is the lowest APR always the cheapest solar loan?: No. Compare financed principal, fees, payment schedule, term, finance charge, total of payments, and the identical cash-price alternative.
How can I find a hidden financing markup?: Request cash and financed prices for the same scope, calculate the difference, and ask the parties to explain it in writing alongside the lender's required disclosures.