You Don't Need $20,000 to Go Solar

One of the biggest myths about solar is that you need tens of thousands of dollars upfront. The truth? Most California homeowners go solar with $0 down — and their monthly loan payments are often less than their current electricity bill.

In this guide, we break down every financing option available to California homeowners in 2026, so you can choose the path that fits your budget and goals.

Option 1: Cash Purchase

Paying cash gives you the best return on investment and the highest long-term savings.

• Typical cost: $18,000–$35,000 (solar + battery)
• Payback period: 5–9 years
• 25-year savings: $50,000–$100,000
• You own the system outright — no monthly payments, no interest

Best for: Homeowners with available savings who want maximum long-term value. You keep 100% of the savings and the full home value increase.

Option 2: Solar Loan ($0 Down)

Solar loans are the most popular financing option in California. They let you go solar with no money down while still owning the system.

• Down payment: $0
• Typical terms: 10–25 years
• Interest rates: 3.99%–8.99% (varies by lender and credit score)
• Monthly payment: $100–$250 (often less than your current electric bill)
• You own the system

How it works: Your monthly loan payment replaces most or all of your electric bill. From day one, your combined cost (loan + remaining utility bill) is typically lower than your old electric bill alone. Once the loan is paid off, your electricity is essentially free for the remaining 10–15 years of the system's life.

Best for: Most homeowners. You start saving immediately with no upfront cost, and you own the system.

Option 3: PACE Financing

Property Assessed Clean Energy (PACE) financing is unique — you repay through your property tax bill instead of a traditional loan.

• Down payment: $0
• Credit check: None (based on home equity, not credit score)
• Repayment: Added to your annual property tax bill over 15–25 years
• Interest rates: 6%–9%
• Transfers with the home if you sell

Best for: Homeowners who don't qualify for traditional loans or prefer property-tax-based repayment. Note: PACE can affect your ability to refinance your mortgage, so discuss with your financial advisor first.

Option 4: Home Equity Loan or HELOC

If you have equity in your home, a home equity loan or line of credit (HELOC) can offer lower interest rates than solar-specific loans.

• Interest rates: 5%–8% (often lower than solar loans)
• Tax deductible interest (since it's used for home improvement)
• Flexible terms: 5–30 years
• You own the system and claim all incentives

Best for: Homeowners with significant home equity who want the lowest possible interest rate.

Option 5: Solar Lease or PPA

With a solar lease or Power Purchase Agreement (PPA), a third-party company owns the solar system on your roof. You pay a fixed monthly amount (lease) or a per-kWh rate (PPA) that's lower than your utility rate.

• Down payment: $0
• Monthly cost: Fixed payment or per-kWh rate (typically 10–30% less than utility rates)
• You do NOT own the system
• Contract terms: 20–25 years

Best for: Homeowners who want lower electric bills with zero upfront cost and zero maintenance responsibility. However, the long-term savings are significantly less than ownership options.

Comparing Your Options: Which Saves the Most?

For a typical 8 kW solar + battery system in California:

• Cash purchase: ~$80,000–$100,000 in 25-year savings (highest ROI)
• Solar loan (15-year, 5.99%): ~$55,000–$65,000 in 25-year savings
• PACE (20-year, 7%): ~$35,000–$45,000 in 25-year savings
• Lease/PPA: ~$15,000–$25,000 in 25-year savings (lowest ROI)

The ownership options (cash, loan, PACE, HELOC) all provide significantly better returns than leasing because you own the system and benefit from the full home value increase.

Get a Free Financial Analysis

At Everysun, we help you understand exactly how each financing option works for your specific situation. We'll show you the monthly payments, total costs, and long-term savings for every option — so you can make an informed decision.

Get a free consultation — we'll design your system and walk you through every financing option available.