What is a solar dealer fee?

In some solar financing programs, a lender charges the installer a fee or pays it a discounted amount. That financing cost may be reflected in a higher price for the homeowner and included in the amount borrowed.

The CFPB’s August 2024 solar-financing report documented markups built into some loan balances without a clear comparison to the cash price. The concern is the total cost and how it was explained.

A dealer fee is different from interest charged over time. When it is financed, the homeowner can also pay interest on the larger principal.

Why your rate looked so good

A financing program can trade a lower stated rate for a larger upfront fee. That can make the monthly payment or APR appear attractive while increasing the amount financed.

In the historical Mosaic data included with this calculator, a 25-year, 3.99% APR row has a fee equal to 34.75% of the loan. The 10.99% row has a 0% reference fee. Those are historical program examples, not current offers or proof of anyone’s actual fee.

Compare the whole deal. A larger upfront fee and a lower rate do not by themselves tell you which option costs less over the time you keep the loan. Principal, interest, loan structure, and early payoff all matter.

Two ways to measure the same fee

A fee stated as a percentage of the loan is different from the markup over the cash price. The calculator shows both.

Illustration from the supplied historical data

Estimated price before financing fee$35,000
Estimated fee added to principal$18,640
Amount financed$53,640
Fee as a share of the loan34.75%
Markup over the estimated base price53.3%

Rounded figures. Fee ÷ loan gives the fee rate; fee ÷ base price gives the markup. The base price is inferred from this reference, not independently verified.

Start with your own paperwork.

  1. Find the original amount financed. Use the opening principal, rather than today’s remaining balance.
  2. Request a comparable cash quote. Confirm that it covers the same equipment, installation, and scope.
  3. Ask for the price breakdown. Identify financed fees, down payments, batteries, roofing work, and other items.
  4. Keep the sales materials. Save proposals, messages, and explanations of the payment or rate.

The difference between a cash quote and a loan balance can reveal a pricing gap. Not all of that gap is necessarily a dealer fee, so check it against your loan documents.

How the calculator works

The calculator uses your amount, selected program, term, and APR to look up a historical reference row. It models what the fee would be if that row applied.

This is an estimate. Your loan documents show the real numbers.

See what the numbers could mean.

Use one starting amount, choose your lender, term, and APR, then review the reference row and its limitations.

Estimate my solar dealer fee

What to ask your installer or lender

  • What was the price for the same project without this financing program?
  • Which fees or discounts affected the amount financed?
  • How was the lower rate priced, and where was that explained?
  • What happens to the financed fee if I repay early?
  • Who can provide a written breakdown of these charges?

If the answers do not match what you were told, organize the records and review your state’s official consumer resources.

Common questions

Is every difference between the loan and cash price a dealer fee?

No. Other financed charges, scope changes, or down payments can affect the comparison. Ask for an itemized breakdown for the same project.

Does matching the APR prove my fee?

No. A historical rate row is a reference, not a record of your transaction. The program, date, contractor terms, and payment structure also matter.

Does an estimated fee mean I can cancel the loan?

No. The calculator estimates a financial scenario. It does not assess legal rights or determine a contractual remedy.

Sources and context

  1. CFPB: Issue Spotlight, Solar Financing, August 7, 2024. Referenced for the explanation of embedded financing markups. Tax material in this historical report should not be treated as current guidance.
  2. Minnesota Attorney General: March 8, 2024 announcement. Historical context: the office alleged hidden-fee practices in a lawsuit against four solar lenders. The announcement is not a determination about your loan or a current case-status update.
  3. Virginia Attorney General: January 2026 announcement. The office alleged that Power Home Solar founders and its lenders misrepresented savings and hid loan fees. These are allegations, not findings about your loan.
  4. New York Attorney General: March 17, 2026 announcement. The office alleged that lenders Solar Mosaic and WebBank hid fees inside the prices Attyx (formerly SUNco) customers paid. These are allegations, not findings about your loan.
  5. Michigan Attorney General: July 15, 2026 announcement. The office alleged that Climax Solar and its financing partners charged dealer and platform fees averaging more than 27 percent of the amount financed. These are allegations, not findings about your loan.
  6. More on these cases in our news coverage.
  7. Calculator reference data comes from historical GoodLeap, Sunnova, and Mosaic rate cards. The Mosaic card is dated July 14, 2023; the others are undated. We have not independently authenticated the original cards.

General education only. No specific outcome is promised. The calculator does not replace the documents for your own transaction.