Hidden Solar Loan Dealer Fees
Solar installers earn $5,000–$15,000 in dealer fees from solar loan companies — which is added to your total cost, often without disclosure.
How This Scam Works
When a solar contractor offers financing through GreenSky, Sunlight Financial, Mosaic, or similar lenders, the lender pays the contractor a "dealer fee" — typically 20–35% of the loan amount. This fee is baked into the total loan amount you're financing. A system that should cost $22,000 cash may be quoted at $28,000 through financing. The monthly payment is lower than your electric bill — but you're paying significantly more for the hardware. This isn't illegal, but it often isn't disclosed.
Warning Signs
- Financing quote is significantly higher than cash price (more than 10% difference)
- Installer only offers one financing option and doesn't disclose the cash price
- Monthly payment comparison doesn't account for utility bills you'll still have (nights, overcast days)
- Loan term is 25 years at a rate that sounds low but includes dealer fee markup
- Contractor can't explain why the loan amount exceeds their itemized system quote
What To Do Instead
Always ask for the all-in cash price before discussing financing. Compare the financed total to the cash price — the difference is the dealer fee. Use your own bank, credit union, or a home equity line to finance if rates are better. The IRS credits the actual system cost, not the loan amount.
Verify any Texas contractor before you sign anything:
Search the TDLR License Database →