What Is a Solar Dealer Fee?

Dealer fee basics

In many solar transactions, the dealer or installer offers financing through a lender. A low stated interest rate may be connected to a higher financed project price. That built-in financing cost is commonly discussed as a dealer fee.

For homeowners, the issue is not a label alone. The review compares the sales proposal, cash-style project value, amount financed, APR disclosures, payment schedule, and what the salesperson said about the price.

• Was there a cash-price comparison?
• Was the financed principal higher than expected?
• Did the payment rely on a tax-credit paydown?
• Were the financing costs clearly explained?

Why it matters

A homeowner may have believed they were getting a low-cost solar system with a low interest rate. If the low rate was obtained by increasing the amount financed, that may change the way the transaction is evaluated.