Should you finance solar with Dividend Finance solar loans?

The cost of installing a solar system can range from $15,000 to $25,000. This can be difficult for many people to afford.

The cost of installing a solar system can range from $15,000 to $25,000. This can be difficult for many people to afford. That is why many people are now getting solar loans to pay for their systems.

There are many providers of solar loans, but it can be difficult to find the right one. Dividend Finance is one of the leading providers of solar loans in the U.S. and is a company you are likely to come across.

What does Dividend Finance offer? What is the application process like? Is Dividend Finance the right lender for your solar installation? Let's take a closer look.

Key takeaways

  • Dividend Finance is a company that provides solar loans to people. They work with over 700 installers to provide their services.
  • Dividend's solar financing option is the EmpowerLoan. The EmpowerLoan is a loan that does not require a down payment.
  • The EmpowerLoan is offered in 12 or 20-year terms. This loan is secured against your solar system.
  • The EmpowerLoan can be used to cover the cost of solar panels and energy storage. The loan amount can be up to $120,000.

Overview of Dividend Finance

Dividend Finance is a company that lends money for solar panels and home improvements. It was founded in 2013 by the current CEO, Eric White. Dividend Finance has quickly become a big player in the solar financing industry.

Fifth Third Bancorp is a financial services company that is in the process of acquiring Dividend Finance. Fifth Third plans to use the acquisition to improve its renewable energy portfolio and support Dividend's commitment to environmental, social, and governance issues.

How it works

Dividend Finance partners with over 700 solar installation businesses across the country. This allows them to offer exclusive access to their solar loans. When one of Dividend’s installer partners creates a quote for a solar system, they’ll attach a built-in financing option from Dividend Finance.

It is important to note that Dividend Finance is not a bank but rather operates through a partnership with KeyBank. This allows them to lower their interest rates for customers and increase the number of loans provided.

Dividend loan options

Dividend offers a financing option for solar energy known as the EmpowerLoan. This loan does not require a down payment, making it available to more homeowners. The terms and interest rates for the EmpowerLoan can be customized to meet the customer's needs, but it is only available in 28 states.

What are the loan amounts for Dividend solar loans?

Dividend Finance provides solar loans of up to $120,000. This means they can provide a loan for most people who want to install a solar system. For example, a 10kW solar system has an average total cost (after tax credit) of $20,350.

What is the term length of a Dividend solar loan?

Dividend Finance offers two different loan term lengths for their EmpowerLoan. For an EmpowerLoan, you have the option of a 12 or 20-year loan. The loan terms are around the industry average, with the most common loan lengths being between 10 and 20 years. With Dividend’s long-term solar loans, there are also no prepayment penalties. This means that borrowers are able to pay down the loan at any time they choose.

What is the interest rate for a Dividend solar loan?

The terms of a solar loan will vary depending on the individual. This means that the length and interest rate of the solar loan will be different for every person.

The interest rate for an EmpowerLoan is determined by two factors: your credit history and the loan terms. The interest rate is also a fixed rate, so you'll know what to expect ahead of time. Depending on those factors, you can expect an interest rate between 3.49% and 6.99%.

Application process

If one of Dividend's installer partners has designed a renewable energy system that meets your energy needs, you will be given the option to apply for an EmpowerLoan. If you decide to apply, you will be given a one-page online application form. After you have filled out the form, you will be notified of a decision immediately.

Dividend has made it possible for you to get a loan and sign a contract in less than two minutes. This is because of their instant credit approval. Once your application is approved and you've signed the contract, the installation process will take place. You can be happy with the system, and then you will make payment to the installer.

Can you finance solar batteries with Dividend Finance?

If you're looking to install a clean energy storage system with your solar panels, then Dividend Finance offers an all-in-one financing solution. Dividend offers a Solar + Storage Loan which is valuable for homeowners wishing to add a solar battery to their system.

Are Dividend loans secured or unsecured?

All of Dividend’s solar loans are secured loans.

A secured loan is a loan where you give the lender something of value to protect the loan. This means that if you do not pay back the loan, the lender can take the thing you gave them as security. For example, if you take out a secured loan with a bank, they might hold the title to your house until you have paid back the entire loan. This protects the bank in case you cannot pay back the money you borrowed. With Dividend EmpowerLoan - Dividend's own solar equipment secures your loan - there's no need for home equity. So even if you don't have a lot of money saved up, you can still get approved for a solar loan.

Repaying your Dividend solar loan

Dividend Finance offers a solar loan that will have your repayments taken directly from your account each month. This happens through an automated direct-debit transfer. Once the solar system is installed and ready, the property owner will be prompted to sign off on the payment. From that point onwards, you will make fixed monthly payments for the duration of the loan term. There are no prepayment penalties, so you can pay off your loan early if you want to.

Should you go solar with a Dividend solar loan?

If you want to go solar but don't have the money to cover the upfront costs, a Dividend Financial solar loan is a good option. With their flexible loan terms, no down payment, and a wide range of loan amounts, Dividend has a solar loan that will work for you. Dividend Financial also has specialized solar loan professionals who can answer any questions you have about their products. However, some people have questions about Dividend solar loans. One issue is that the customer service is not very good. People have to wait for a long time to get a response, and sometimes they don't get a response at all. So if you're thinking about getting a loan from Dividend, be prepared for these kinds of problems.

At SolarReviews, we recommend that people pay for solar systems in cash. But we understand that this may not be possible for everyone. If you can't pay in cash, then there are other solar loan options available to you.

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