You can generally prepay a solar loan without penalty. Many solar loan providers explicitly allow full or partial prepayment at any time without charging any prepayment fees. This means you can reduce your principal balance early and save on interest without incurring extra costs. For example:
- Climate First Bank states you can fully prepay your solar loan at any time with absolutely no prepayment penalty or fee, and any extra payment reduces your principal balance immediately.
- Sunnova Energy also confirms that customers can prepay full or partial amounts of their solar and roof loans early with no penalty, while still keeping their warranties intact.
- EnergySage notes that most solar loans allow early repayment without penalties, although terms may vary by lender and loan type.
- However, it’s important to check your specific loan agreement for any exceptions, such as required prepayments related to Investment Tax Credits (ITC), or dealer fees that might increase your financed amount and affect your overall loan cost.
In summary, the typical solar loan does not impose prepayment penalties, giving you the flexibility to pay off your loan early and save on interest costs, but always verify the terms with your lender to be sure.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-prepay-a-solar-loan-without-penalty/
