How Does Solar Financing Work in Nevada?

Nevada’s desert climate provides some of the best solar resources in the country, making solar energy a practical choice for homeowners and businesses. However, the main challenge for many residents is paying for the system. Some choose to purchase their solar arrays outright, while many others prefer solar financing solutions that allow them to spread costs over time. These options include solar loans, solar leases, and third-party ownership (TPO) arrangements such as power purchase agreements (PPAs). By using solar financing, Nevadans can enjoy clean energy without the heavy burden of paying all expenses at once.

Paying with cash delivers the clearest financial advantage because the homeowner immediately owns the system and can claim all solar incentives, including the federal Investment Tax Credit (ITC). With full ownership, all the long-term energy savings stay with the property owner. The drawback, however, is the significant upfront expense. In contrast, solar financing structures distribute payments over many years, enabling families and businesses to benefit from solar power while keeping more liquidity. The trade-off is the introduction of monthly payments and interest, which slightly reduce overall savings but dramatically increase affordability.

Although Nevada does not currently run a statewide rebate program, homeowners can benefit from the 30% federal ITC and property tax exemption for renewable energy systems in the state. Net metering remains a major incentive, since residents can earn credits on their bills for excess electricity generated. These solar incentives strengthen the case for financing because the combined savings can offset interest and payment costs over the life of the loan or contract.

Buying Solar Outright vs. Financing

Solar Financing Options in Nevada

Nevada residents can access a range of solar financing tools, allowing them to adopt solar power without draining savings. Those with significant cash on hand can buy a system outright, while others choose loans, leases, or PPAs.

A cash purchase is the most straightforward method, eliminating monthly payments and maximizing long-term benefits. However, with the average residential system costing between $20,000 and $30,000, this option is not realistic for every household. Financing methods step in to fill that gap. Solar loans allow borrowers to own the system while spreading costs across monthly payments. Solar leases give the homeowner access to solar power in exchange for a predictable monthly fee, while PPAs provide electricity at a fixed per-kWh rate, often lower than utility charges.

In Nevada, solar loans are the most common path to ownership, with more than half of adopters relying on them. Cash purchases account for about a quarter of installations, while leases and PPAs represent the remainder. For many, leases and PPAs are appealing because they require no upfront payment, which is often promoted as “free solar.” These models are especially helpful for families who want immediate savings without assuming the responsibility of system maintenance.

Types of Solar Loans in Nevada

Solar loans in Nevada are widely available, with banks, credit unions, installers, and specialized clean energy lenders all offering different programs. Each loan type comes with its own advantages and risks.

Secured Solar Loans

Secured loans require collateral, usually tied to home equity. Because the lender’s risk is reduced, interest rates are typically lower, and repayment terms are longer. The risk to the borrower is that failure to repay can jeopardize the asset used as collateral. For homeowners with sufficient equity, these loans often provide the most affordable long-term financing.

Unsecured Solar Loans

Unsecured loans do not require collateral and instead rely on the borrower’s creditworthiness. Approval tends to be faster, but interest rates are higher and repayment periods shorter compared to secured loans. For residents with strong credit scores, unsecured loans provide a straightforward way to finance solar without tying up their property.

Installer and Credit Union Loans

Many Nevada installers partner with lenders to offer financing directly to customers, simplifying the process. Local credit unions also provide attractive loan products, often with flexible repayment options and competitive rates. Credit union loans can be especially appealing to members because they often include lower fees and customer-focused service.

In Nevada, solar loans typically run between 5 and 20 years, with interest rates usually ranging from 3% to 8%, but they can go up to 36%, depending on credit score. The exact terms depend on credit history, income, repayment period, and the lender’s requirements, but most borrowers can find a structure that balances affordability with long-term savings.

How to Find the Best Solar Loans in Nevada

Identifying the best solar loan in Nevada depends on balancing the total cost of financing with the homeowner’s ability to make monthly payments. Shorter loan terms raise monthly obligations but reduce the total amount of interest paid, while longer terms lower monthly costs but increase overall expense. Interest rates are equally important, with good rates generally falling between 4% and 6%. Rates below 4% are excellent and can significantly boost long-term savings, while rates above 8% may undermine the financial benefits of solar altogether.

Borrowers also need to consider flexibility. Some lenders allow early repayment without penalty, which can make a significant difference if the homeowner’s financial situation improves and they want to pay off the loan faster. Down payment requirements vary as well, with some lenders offering true zero-down financing and others requiring an upfront investment to secure more favorable rates. The ideal solar loan is one that balances affordability in the present with financial benefits that extend across the life of the system.

Can I Get Free Solar Panels in Nevada?

Nevadans often hear about “free solar,” though the term is more of a marketing phrase than a literal truth. What it usually refers to are leases and Power Purchase Agreements (PPAs), both of which allow homeowners to install solar panels without upfront payments. These third-party ownership models make solar accessible to more households, but the structure of payments and benefits differs.

A solar lease allows the provider to retain ownership of the system while charging the homeowner a fixed monthly fee. The advantage is predictable costs, usually lower than utility bills, with no responsibility for maintenance. The drawback is that the homeowner does not qualify for solar incentives or own the system outright. In contrast, a PPA ties payments directly to the amount of electricity produced. Homeowners purchase this energy at a per-kWh rate that is often below the utility price, leading to immediate savings. Like leases, PPAs shift maintenance and performance obligations to the provider, which can be an advantage for those who prefer not to manage upkeep.

These options create an opportunity for households to benefit from solar energy without having to commit large sums upfront. However, while they improve access, they cannot match the financial returns of outright ownership, since incentives and long-term savings are not passed along to the homeowner.

How to Get Solar Financing in Nevada

The process of getting solar financing in Nevada varies depending on the structure chosen. Homeowners pursuing solar loans typically begin with a credit check, since most lenders require a solid credit history to offer the most favorable rates. From there, comparing offers from banks, credit unions, and installers helps ensure competitive terms. Reviewing loan details, such as interest rates, repayment length, and early payoff options, provides clarity before signing a contract. Once financing is secured, installation proceeds, and repayment begins as scheduled. Managing payments responsibly can even strengthen credit over time, making loans an investment not only in solar but also in financial health.

For leases and PPAs, the steps look different. First, a homeowner identifies a provider that offers third-party ownership in their area. The next step is to carefully review the contract, paying attention to payment structures and system performance guarantees. After the agreement is signed, the provider handles installation and ongoing maintenance. From that point forward, the homeowner pays either a fixed monthly fee or a rate based on the electricity produced. The advantage is immediate savings and little to no responsibility for the system, but the lack of ownership limits the financial upside.