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The answer
Checked October 21, 2026: A solar loan dealer fee is a charge added to the loan principal on top of the system's cash price. The CFPB says these fees typically range from 10% to 30% of the cash price and can exceed 50%, that lenders usually leave them out of the total cost of credit they present, and that they can raise the principal by 30% or more.[1] To find yours, compare the cash price (ask the installer in writing) with the "Amount Financed" on your Truth in Lending disclosure.[4] The fee stays in your payoff balance, so it also raises the cost of paying off, refinancing or selling.
Our partner Solar Exit Group (Uso Holdings LLC) takes solar loans from any lender except Tesla. No cost to submit. Paid partner; it does not change our ratings.
What a solar loan dealer fee is
The CFPB says solar lenders call these charges "program fees," "lending fees," "finance fees," "platform fees," "original issue discounts" and "dealer fees."[1] The lender pays the installer the cash price and keeps the fee, and the fee is built into the loan principal you repay with interest.[1] The name is misleading: one consumer told the CFPB the installer described a 26% upfront fee that the lender, not the dealer, retained.[1]
Low advertised rates are the reason the fee exists. A lender can advertise a rate like 3.99% because the fee, not the interest, carries much of the cost. The CFPB notes that lenders who price all costs into the APR say it is hard to compete, because their disclosed rates look higher even when their all-in cost is lower.[1]
What a dealer fee costs: a worked example
The CFPB's own example: a $30,000 cash-price system with a $9,000 fee (30% of the cash price) produces a $39,000 loan principal.[1] We ran that example over 25 years at a 3.99% rate. These are our calculations, not lender figures.
| Scenario | Loan principal | Monthly payment | Total of 300 payments |
|---|---|---|---|
| No dealer fee, 3.99% | $30,000 | $158.19 | $47,456 |
| 30% dealer fee, 3.99% | $39,000 | $205.64 | $61,692 |
| No dealer fee, 7.99% | $30,000 | $231.35 | $69,404 |
On the cash price, the 3.99% loan with a 30% fee works out to an effective annual rate of about 6.7% if you keep it the full 25 years. The CFPB says solar loans are typically repaid in 7 to 9 years because of prepayments;[1] if you pay this loan off at year 7, the effective rate on the cash price is about 8.8%, because the whole fee was paid up front. Pay it off in month one and you owe roughly $39,000 on a $30,000 system.
Minnesota's Attorney General alleges that most hidden fees in its investigation raised borrowers' costs by 15% to 30%, and that most borrowers never learned they were paying up to 54% more than if they had paid cash or found their own loan. Those are allegations; we found no final ruling as of October 21, 2026.[2]
How to find the dealer fee in your own paperwork
- Get the cash price. Ask the installer, in writing, what the same system would have cost if you had paid cash on the day you signed. Some sales proposals list both a cash price and a financed price.
- Find "Amount Financed" in the Truth in Lending box. Federal rules require closed-end loan disclosures to show the amount financed, the finance charge and the APR.[4]
- Compare. Amount financed minus cash price (and minus any down payment) is the likely markup. Divide by the cash price to get the percentage.
- Check the installation contract for a "contract price" that is higher than the cash price you were quoted.
- Ask the lender for the funding or disbursement statement showing what it paid the installer.
- Check the tax-credit math. If the 30% federal credit was used to show a "net cost," know that the CFPB calls this framing misleading,[1] and the IRS says the Residential Clean Energy Credit is not available for property placed in service after December 31, 2025.[7]
See if our partner Solar Exit Group can help. No cost to submit. Paid partner, disclosed.
Is a hidden dealer fee legal?
Regulation Z defines the finance charge as the cost of consumer credit, including any charge imposed as "an incident to or a condition of the extension of credit," and excludes charges "of a type payable in a comparable cash transaction."[3] A fee that only borrowers pay, and cash buyers do not, is the kind of charge the CFPB spotlight and the Minnesota lawsuit focus on. Whether a given fee had to be disclosed as a finance charge depends on the facts and is for a court or regulator to decide.
| Who | What | Source |
|---|---|---|
| CFPB (August 7, 2024) | Issue Spotlight finds hidden fees of 10% to 30% of cash price, sometimes over 50%, usually left out of the presented cost of credit | [1] |
| Minnesota Attorney General (March 8, 2024) | Sued GoodLeap, Sunlight Financial, Solar Mosaic and Dividend Solar Finance in Hennepin County, alleging about $35 million in hidden fees on about 5,000 loans (allegations; no final ruling found as of October 21, 2026) | [2] |
| Your lender | Your loan agreement and disclosures control what you owe today | Your documents |
Lender pages with more detail: Dividend Finance, Sunlight Financial, Mosaic.
What you can do about a dealer fee
- Complain. File with the CFPB[6] and your state attorney general. Include the cash price, the amount financed and the gap. How-to: CFPB complaint against a solar company.
- Raise installer misstatements with the holder. If the salesperson misrepresented the price or the loan, the FTC Holder Rule notice lets you raise that against the loan holder, up to what you paid.[5] See the Holder Rule guide.
- Run refinance math on the real numbers. The fee is already in your balance, so refinancing does not get it back, but a lower rate on the remaining balance may still save money. See solar loan refinance and the payoff math guide.
- Talk to a lawyer if the cash price was never disclosed or you were told there were no fees. See solar panel lawyer.
We do not advise homeowners to stop making payments or breach contractual obligations. A high dealer fee is a reason to look at refinancing, disputes or complaints, not a reason to skip payments. Missed payments bring late fees and credit damage under your agreement.
Disclosure: We may earn compensation when you contact companies through our site. This does not change our ratings. Our partner for solar loans (all lenders except Tesla) and Sunnova PPAs is Uso Holdings LLC d/b/a Solar Exit Group; see authorized partners. SolarPanelExit.com is not a lender, law firm or credit counselor and is not affiliated with any lender named on this page.
Frequently asked questions
What is a dealer fee on a solar loan?
A charge added to the loan principal on top of the system's cash price. The lender pays the installer the cash price and keeps the fee. Lenders also call it a program, lending, finance or platform fee, or an original issue discount.
How much are solar loan dealer fees?
The CFPB says they typically range from 10% to 30% of the cash price and can exceed 50%. Minnesota's Attorney General alleges most fees in its investigation raised borrowers' costs by 15% to 30%.
How do I find the dealer fee on my solar loan?
Ask the installer in writing for the cash price, then compare it with the Amount Financed on your Truth in Lending disclosure. The difference, less any down payment, is the likely markup.
Do I get the dealer fee back if I pay off my solar loan early?
Generally no. The fee is part of the principal, so it is in your payoff balance. Paying off early saves future interest but not the fee.
Is a hidden solar dealer fee illegal?
It depends on the facts and on how it was disclosed. Regulation Z excludes from the finance charge only charges of a type payable in a comparable cash transaction. Minnesota has sued four lenders over hidden fees; those claims are allegations.
Which solar lenders charge dealer fees?
The CFPB did not name lenders. Minnesota's lawsuit names GoodLeap, Sunlight Financial, Solar Mosaic and Dividend Solar Finance, and its claims are allegations. Check your own cash price and amount financed.
Still paying a solar loan (not Tesla) or a Sunnova PPA? See if our partner Solar Exit Group can help. No cost to submit. Paid partner; it does not change our ratings.
Sources
Checked October 21, 2026. Lender policies, servicer details and contact information change; confirm on the linked primary source and in your own loan agreement before you act.
- RegulatorCFPB, Issue Spotlight: Solar Financing (August 7, 2024)
- Attorney GeneralMinnesota Attorney General, "Attorney General Ellison sues solar lenders over $35M in deceptive hidden fees" (March 8, 2024)
- Regulation12 CFR 1026.4, Finance charge (Regulation Z, Cornell LII)
- Regulation12 CFR 1026.18, Content of disclosures for closed-end credit (Regulation Z, Cornell LII)
- Regulation16 CFR Part 433, FTC Holder Rule: definitions (433.1) and required notice (433.2), eCFR
- RegulatorCFPB, Submit a complaint
- RegulatorIRS, Residential Clean Energy Credit
Disclaimer: This page is not legal advice. It is general information, not legal, tax or financial advice, and it does not create an attorney-client relationship. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. Consult a qualified attorney licensed in your state before acting on your solar contract or loan. We may earn compensation when you contact companies through our site. This does not change our ratings. Solar Exit Group (Uso Holdings LLC) is a paid partner; see authorized partners. See our Ownership Disclosure, Advertiser Disclosure and Methodology.