Should you finance solar with Sungage Financial solar loans?

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Image source: Sungage Financial

Coming up with the upfront costs to install a solar system on your home can be difficult. Many homeowners don’t have the $15,000 - $25,000 it costs to buy a system outright. This is where Sungage Financial and their solar loans can help out.

If you’re in the market for a solar system and are comparing quotes from solar installers, then you may have already come across a Sungage loan option. With little to no upfront costs, Sungage’s financial services provide homeowners with the opportunity to have a solar power system installed on their home. 

Before you consider a solar loan from Sungage Financial, here’s what you should know.

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    Key takeaways

    • Sungage Financial makes going solar easier by connecting you with a trusted solar loan lender.
    • Through their network of installers, Sungage is able to exclusively offer their solar loans.
    • Sungage’s loan application process takes less than five minutes to complete and you’ll be notified of a decision immediately.
    • With little or no upfront costs, flexible loan terms and a loan cap of $150,000, Sungage are able to provide a wide array of loan options.

    Overview of Sungage Financial

    Based in Boston, Massachusetts, Sungage Financial is aiming to make going solar easier and more accessible for homeowners with their unique loan options and processes. Sungage operates as the connector between homeowners and consumer-friendly financing options.

    How it works

    Sungage has a large network of solar installers across the country. Through these installer partners, Sungage are able to offer exclusive access to their solar loans. When one of the installers from their network creates a quote for a potential customer, they will include a built-in financing option from Sungage.

    Sungage then offers a simplified step-by-step loan application method that will take under five minutes to complete. 

    It is important to note that Sungage Financial is not a bank but rather operates through their partnership with NBT Bank; which allows them to offer a wide array of residential solar loans. This means that when you receive a solar loan from Sungage Financial, your loan is actually coming from NBT Bank.

    See your projected cash flow from using a solar loan to install solar panels

    Application process

    Once one of Sungage’s installer partners has designed a solar power system that is right for your home, you will be given a link to a secure, online credit application. 

    A Sungage solar loan is a credit-based loan, so in order to qualify you will need a minimum FICO score of 640 and a maximum debt-to-income ratio of 50%. Another requirement is that the location of the desired solar installation must be your primary residence.

    The loan application will take less than five minutes to complete and you’ll be notified of a decision immediately. Once your application is approved, the installation process will take place and when you’re happy with the system, payment will be made to your installer. 

    Loan amounts

    Sungage recently increased their maximum solar loan amount to $150,000. With this increase, Sungage Financial now offers the highest industry loan cap, with the minimum loan amount offered being $7,500. 

    With the widest range of loan amounts in the market, Sungage’s solar financing will easily cover the cost of installing a residential solar energy system.

    Sungage’s maximum solar loan amount is impressive, but we see it as being excessive. The average residential solar system is approximately 8kW and will cost under $20,000 after the federal solar tax credit

    All in all, we don’t think Sungage’s maximum loan amount adds value to borrowers.

    Learn more: How much will solar panels cost to install on your specific home in 2021?

    Loan terms

    Each solar installation must be designed specifically for your specific situation, and Sungage believes the same is required for a solar loan. That’s why they offer various solar loan terms to meet each customer’s needs.

    Sungage Financial offers loans in 5, 10, 15, and 20-year terms. Sungage’s range of loan terms means that more people are given access to their solar loans. The interest rates for their solar loans will vary between 4.49% to 7.24%, depending on a number of factors. 

    Another impressive feature of Sungage’s solar loans is that they require no down payment. There is also no prepayment penalty on any of their solar loans.

    Zero-interest tax credit deferral

    You may already know that when you purchase a solar panel system, you’re eligible to claim the 26% federal solar tax credit. Once you install a solar system, you receive the credit on your next year’s taxes. With many other lenders, you will have to pay interest for the entirety of the loan including the 26% tax credit portion, however, this isn’t the case with Sungage Financial.

    Sungage Financial offers a zero-interest tax credit deferral which can span up to 18 months. This means that when it comes to tax time, you’re able to receive your 26% tax credit and pay back that portion of the loan without any interest.

    Can you finance solar batteries with Sungage Financial?

    If you’re wanting to pair a battery with your solar system installation, then a Sungage solar loan can be used to cover the costs. In fact, Sungage can finance up to $50,000 for solar batteries with interest rates as low as 0.99%. 

    It’s important to note that Sungage will only finance a solar battery installation if the battery is from one of their manufacturer partners.

    Is installing a solar battery worth it?

    Are Sungage loans secured or unsecured?

    All of Sungage’s solar loans are secured loans. 

    A secured loan is where your loan is protected by an asset. This means the lender will hold the title over the asset until the loan is paid in full. This provides the lender with security, so if you cannot pay off your loan, then the bank will sell your collateral to pay off the loan.

    Fortunately, you don’t have to sign over your home as collateral for a Sungage loan - Sungage uses the solar equipment itself to secure the loan. This also means that you don’t need home equity to get approved for a loan.

    Paying your Sungage solar loan

    Once the solar system has been installed and is ready for inspection, the homeowner will be prompted to sign off on payment. The homeowner will then make their first payment 60 days after the solar project completion, and continue to make monthly payments until the loan is paid off.

    Should you go solar with a Sungage solar loan?

    If you’re looking at going solar with one of Sungage’s installer partners and you can’t cover the upfront costs, then a Sungage solar loan is a good choice. With their flexible loan terms, zero-interest tax credit deferral, and a wide range of loan amounts, a Sungage loan is an impressive financing option. 

    With Sungage being an exclusively solar loan lender, you will also experience the benefits of expert customer support throughout the loan process. This is where Sungage may provide an advantage over other lenders.

    Unfortunately, Sungage provides very limited useful information on their website. This makes it quite difficult for those searching for a solar loan to find answers or even get an understanding of Sungage’s services. This is a bit of a warning sign and can be problematic if you’re trying to compare loan options. 

    If Sungage Financial isn’t for you, then there are many other solar financing companies that you could consider instead. If you want to learn more about your financing options, check out our expert review of our top 6 solar financing companies. You can also go to our solar panel calculator to find out what solar will cost in your area.

    Find out how much solar panels will cost for your specific roof
     - Author of Solar Reviews

    Cameron Bates

    Blog Author

    Cameron is a business analyst and content specialist at SolarReviews.

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