Since the residential solar tax credit ended after 2025, anyone who buys solar with cash or a loan pays full price. Propel is one of the new programs that brings that lost value back by letting a business own the system for five years and pass the commercial tax credit to you as a discount.
But a discount is only half the story. Propel’s loan rate is higher than some advertised solar loans, and you wait five years to hold title. So which actually costs less? We priced the same system five different ways to find out.
The short answer
- Cheapest overall: Propel paid in cash. You get the discount and pay no interest.
- Cheapest with $0 down: Propel with a loan, when your system includes a battery. About $86 a month less than a no-fee loan in our example.
- Where it’s close: Solar-only systems. A low-rate loan with a dealer fee can roughly tie Propel.
- When a loan still wins: You want title on day one, may sell within five years, or live outside Propel’s 13 states.
The Three Options in Plain English
| Propel | Solar loan | Cash | |
|---|---|---|---|
| What you pay for | A prepaid agreement, at a discounted price | The full system price, borrowed | The full system price, upfront |
| Tax credit value in 2026 | About 25% to 40% off, built into the price | None | None |
| How you pay | Cash, or $0 down with a fixed loan | $0 down, fixed loan | One payment |
| Typical rate | Reported 7.79% to 10.49%, no dealer fee | High single digits with no fee, or a low rate plus a 15% to 30% dealer fee | None |
| Who owns it | A third party for 5 years, then you | You, day one | You, day one |
| Maintenance years 1 to 5 | Included | Warranty only | Warranty only |
| Equipment | Enphase plus approved panels | Any | Any |
For more on every financing type, see solar financing options in California.
Our Test System and Assumptions
To compare fairly, we used one system and changed only the way it’s paid for:
- System: 8 kW of solar at $3.00 per watt ($24,000) plus a 10 kWh battery at $14,000. Total: $38,000.
- No-fee solar loan: 7.99% APR, 25 years.
- Dealer-fee solar loan: 3.99% APR, 25 years, with a 25% dealer fee added to the amount borrowed.
- Propel: 35% discount on solar plus battery, 8.99% APR, 25 years, no dealer fee.
- Payments are calculated with a standard loan formula. Electric bill savings are the same in every case, since the system is the same, so we compare only what you pay for the system.
Solar Plus Battery: Propel vs Solar Loan vs Cash
| Payment method | Amount financed or paid | Monthly payment | Total paid over 25 years |
|---|---|---|---|
| Propel, paid in cash | $24,700 upfront | $0 | $24,700 |
| Cash purchase | $38,000 upfront | $0 | $38,000 |
| Propel with a loan | $24,700 | About $207 | About $62,100 |
| Solar loan with 25% dealer fee (3.99%) | $47,500 | About $250 | About $75,100 |
| Solar loan, no dealer fee (7.99%) | $38,000 | About $293 | About $87,900 |
What this shows:
- Propel with a loan saves about $86 a month versus a no-fee loan, and about $25,800 over 25 years.
- Against a dealer-fee loan, Propel saves about $43 a month and about $13,000 over 25 years, even though its rate is more than double.
- Propel paid in cash beats a regular cash purchase by $13,300, because the regular buyer gets no tax credit in 2026.
Why a higher rate can still cost less
Propel’s rate applies to a smaller balance. A 3.99% loan sounds cheaper, but the dealer fee raises what you borrow from $38,000 to $47,500, while Propel’s discount cuts it to $24,700. The amount you borrow matters more than the rate.
Solar Only: Where the Gap Gets Small
Propel’s discount is smaller on solar-only systems, reported at up to about 20%. Here is the same 8 kW system with no battery ($24,000):
| Payment method | Amount financed or paid | Monthly payment | Total paid over 25 years |
|---|---|---|---|
| Propel, paid in cash | $19,200 upfront | $0 | $19,200 |
| Cash purchase | $24,000 upfront | $0 | $24,000 |
| Solar loan with 25% dealer fee (3.99%) | $30,000 | About $158 | About $47,500 |
| Propel with a loan (20% off, 8.99%) | $19,200 | About $161 | About $48,300 |
| Solar loan, no dealer fee (7.99%) | $24,000 | About $185 | About $55,500 |
The honest result: On a solar-only system held for 25 years, a low-rate dealer-fee loan and Propel come out about even. Propel still wins clearly against a no-fee loan, and still wins if you pay off early (see below). If you want a battery, Propel’s advantage grows a lot.
If You Plan to Pay It Off Early
Many homeowners pay off solar early, from savings, a home refinance, or a bonus. That changes the math, because the price you borrowed matters more than the rate. Here is what it costs to pay off each option in month one, for the solar plus battery system:
| Option | Payoff amount | Why |
|---|---|---|
| Propel loan | $24,700 | Discounted price, no prepayment penalty |
| No-fee solar loan | $38,000 | Full price, no discount |
| Dealer-fee solar loan | $47,500 | The dealer fee is baked into your balance, so you pay it even if you pay off early |
Propel also allows up to three reamortizations, after payments 12, 24, and 36, so a lump sum can lower your monthly payment instead of only shortening the loan.
How Your Credit Tier Changes the Comparison
Propel’s rate depends on your credit tier. Here is our solar plus battery example across the reported rate range:
| Propel APR | Monthly payment | 25-year total | vs no-fee loan at 7.99% ($293/mo) |
|---|---|---|---|
| 7.79% | About $187 | About $56,200 | About $106/mo less |
| 8.99% | About $207 | About $62,100 | About $86/mo less |
| 10.49% | About $233 | About $69,900 | About $60/mo less |
Even at the top of the reported range, Propel still costs less monthly than a no-fee loan on a solar plus battery system.
What Doesn’t Show Up in the Monthly Payment
| Factor | Propel | Solar loan or cash |
|---|---|---|
| Ownership timing | After year 5 | Day one |
| Selling in years 1 to 5 | Transfer the agreement, or pay off the loan and transfer only the agreement | Simpler, though a loan lien still has to be handled. See selling a house with solar panels |
| Maintenance and repairs, years 1 to 5 | Included, with a performance guarantee | Warranty claims only |
| Equipment choice | Enphase inverters and batteries, approved panels | Any brand |
| Paperwork | Agreement plus loan | Loan only, or none for cash |
| Availability | 13 states, participating utilities | Everywhere |
| Credit needed | About 660 (TransUnion) | Varies by lender, often mid-600s or higher |
Which Should You Choose?
| Your situation | Likely best choice |
|---|---|
| You have the cash and plan to stay 6+ years | Propel, paid in cash |
| You want $0 down and a battery | Propel with a loan |
| You want solar only and qualify for a very low-rate loan | Compare both. It’s close |
| You may sell within 5 years | Solar loan or cash |
| You want a specific panel, inverter, or battery brand | Solar loan or cash |
| You live outside Propel’s 13 states | Solar loan, cash, or a PPA |
| You never want to own the system | A monthly lease or PPA. See PPA 101 |
If you are still deciding on a battery, our guide on whether to add a home battery in 2026 helps. With Propel, the battery is also what unlocks the larger discount.
How to Compare Your Own Quotes
- Ask for the same system priced as cash, loan, and Propel.
- Compare the amount financed, not just the rate. Ask whether any dealer fee is included.
- Compare the 25-year total and the month-one payoff amount.
- Ask what the Propel discount percentage is and whether it includes bonus credits.
- Confirm when ownership transfers and what happens if you sell.
Our list of solar contract questions covers the rest.
Frequently Asked Questions
Is Propel cheaper than a solar loan?
Usually, when the system includes a battery. In our solar plus battery example, Propel costs about $207 a month versus $293 for a no-fee solar loan, and about $25,800 less over 25 years. For solar-only systems, the gap is small, and a low-rate loan with a dealer fee can come out about even.
Why does Propel have a higher interest rate than some solar loans?
Propel loans have no dealer fee, so the rate reflects the real cost of borrowing. Loans advertised at 3.99% often add a dealer fee of 15% to 30% to the amount you borrow. Compare total cost, not the rate.
Is it better to pay cash or use Propel?
If you have the cash, prepaying Propel in cash is usually the cheapest option of all, because you get the discount and pay no interest. A regular cash purchase pays full price with no tax credit in 2026. The trade-off is that you wait five years to hold title.
Can I pay off a Propel loan early?
Yes. Propel loans have no prepayment penalty, and installers report up to three reamortizations, after payments 12, 24, and 36, that lower your monthly payment after a lump sum.
When does a solar loan beat Propel?
A loan can win when you want to own the system from day one, plan to sell within five years, want equipment outside Propel’s approved list, live outside Propel’s 13 states, or are buying a solar-only system with a very low-rate loan.
Do I own the system with Propel as I would with a loan?
Not right away. With a loan or cash, you own the system on day one. With Propel, a third party owns it for five years to claim the tax credit, then ownership is designed to transfer to you, with the buyout already built into your price.
Does a solar loan still get a tax credit in 2026?
No. The residential solar tax credit ended after 2025, so loan and cash buyers pay full price. Propel gets around this because a business owns the system at first and can claim the commercial Section 48E credit.
See All Three Prices for Your Home
US Power is an approved Propel installer. We’ll price your system as cash, a loan, and Propel side by side, with the amount financed and 25-year total for each, so you can compare real numbers.
Get your free side-by-side quote or try our solar calculator.