As a solar installer, offering financing isn’t just an add-on—it’s a sales accelerator. In today’s competitive market, homeowners and businesses don’t want to pay $20,000+ upfront for a system, no matter how good the ROI is.
That’s where solar financing comes in. By partnering with lenders like Sunlight Financial or Enium Capital, you give your customers flexible payment options while ensuring your business gets paid upfront. But like any tool, financing has its upsides and trade-offs.
Here’s a clear breakdown of the pros and cons of solar financing—plus how to present them during your sales pitch to close more deals confidently.
âś… The Pros of Solar Financing
1. Increases Deal Conversion
Offering financing removes the biggest barrier—upfront cost. A $25,000 system becomes a manageable $120/month payment.
Sales Pitch Tip:
"With $0 down and low monthly payments, you can start saving on energy from day one—without touching your savings."
2. Accelerates Business Growth
You get paid in full by the lender, while the customer pays them over time. This boosts cash flow, allowing you to take on more projects.
3. Makes Solar Accessible to More Customers
Financing opens the door to:
- First-time homeowners
- Middle-income families
- Commercial clients with tight cash flow
Example:
Sunlight Financial offers FICO-friendly options, making it easier to approve clients with moderate credit.
4. Improves Sales Efficiency
Pre-qualified customers are more serious, and tools from platforms like Sunlight’s Orange Portal or Enium’s Loan Manager streamline quoting and approvals.
5. Tax Credit Still Applies
In most loan-based financing models, customers own the system, meaning they still get the 30% federal tax credit (ITC)—a key selling point.
⚠️ The Cons of Solar Financing
1. Dealer Fees Can Eat Into Margins
Financiers charge dealer fees (10–20%), which can shrink your profit if you’re not careful with pricing.
Example:
A $30,000 system with a 15% dealer fee costs you $4,500—unless you pass that into your pricing model.
2. Not All Customers Qualify
Low-credit applicants might get rejected or approved at higher rates, risking the sale. Enium solves part of this by offering options for FICO as low as 600, but it's still a challenge.
3. Complex Terms Can Confuse Clients
Loans with balloon payments, step-up rates, or promotional periods may lead to confusion or dissatisfaction if not properly explained.
Sales Pitch Tip:
"We work with trusted financing partners like Sunlight and Enium to offer transparent, flat-rate financing—no surprises down the line."
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🛠️ How to Use Financing in Your Sales Pitch
- Always lead with savings, not cost.
Show the monthly payment vs. their current utility bill. - Be transparent about financing terms.
Use clear visuals and calculators to compare options. - Bundle financing into your proposal software.
Platforms like Arka 360 allow you to embed financing offers directly into your solar proposals. - Have multiple lenders ready.
If a customer gets rejected by one, don’t lose the deal—have a backup.
âś… Final Thoughts
Solar financing isn’t a magic bullet—but used wisely, it’s a powerful tool to boost conversions, increase accessibility, and grow your business faster.
By understanding the pros and cons, and choosing the right financing partners like Sunlight Financial and Enium Capital, you can deliver real value while staying profitable.
Want to include financing in every proposal, seamlessly?
Explore how Arka 360 helps you integrate lender options, calculate paybacks, and win more deals—all in one platform.
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