As a major residential solar financing provider in the United States, Mosaic has helped over 360,000 homeowners transition to clean energy by funding more than $13 billion in solar loans. With three distinct loan products and competitive interest rates, Mosaic offers flexible financing solutions that make solar accessible to homeowners across various credit profiles and financial situations.
Understanding Mosaic’s current rates, loan structures, and qualification requirements is crucial for making an informed decision about solar financing. This comprehensive guide covers everything you need to know about Mosaic solar loan rates in 2025, including real payment examples and comparisons with alternative financing options.
Current Mosaic Solar Loan Rates (2025)
Mosaic’s interest rates for 2025 vary significantly based on the loan product, term length, and borrower qualifications. Here’s a breakdown of current rate ranges:
CHOICE Loan Rates
- APR Range: 0.99% to 7.99%
- Promotional Rates: As low as 0.99% for qualified borrowers
- Standard Rates: Typically 3.99% to 7.99% APR
- Autopay Discount: 0.50% interest rate reduction available
PLUS Loan Rates
- APR Range: 4.99% to 10.59%
- Standard Rates: Most borrowers see 5.99% to 8.99% APR
- Autopay Discount: 0.50% interest rate reduction available
PowerSwitch ZERO Promotional Rates
- Promotional APR: 2.99% to 5.99%
- Deferred Period: 12 or 18 months with no payments
- Standard Terms: 10, 15, 20, or 25-year repayment after promotional period
Factors Affecting Your Interest Rate
Several key factors influence the specific rate you’ll receive:
- Credit Score: Higher FICO scores (720+) typically qualify for the lowest rates
- Loan Term: Shorter terms generally offer lower interest rates
- Loan Amount: Larger loans may qualify for better rates
- Debt-to-Income Ratio: Lower DTI ratios improve rate eligibility
- Autopay Enrollment: Automatic payments reduce rates by 0.50%
- Market Conditions: Rates fluctuate based on broader economic factors
Mosaic Loan Products Deep Dive
CHOICE Loans: Designed for Solar Tax Credit Users
The Mosaic CHOICE loan is specifically designed for homeowners who plan to use their federal solar tax credit to pay down the loan principal. This structure allows for lower monthly payments throughout the loan term.
Key Features:
- Requires 30% payment within first 18 months (typically from tax credit)
- Lower monthly payments after re-amortization
- Terms: 10, 15, 20, or 25 years
- Loan amounts: $10,001 to $100,000
- No prepayment penalties
15-Year CHOICE Loan Example: A $30,000 loan at 7.99% APR would have monthly payments of $213.93, assuming a 30% ($9,000) prepayment during the first 18 months.
PLUS Loans: Solar + Home Improvements
The PLUS loan allows homeowners to finance solar installations alongside other home improvements like HVAC upgrades, roofing, windows, and doors.
Key Features:
- No required prepayment (payments remain consistent)
- Solar must comprise at least 50% of the loan amount
- Additional 50% can cover related home improvements
- Terms: 10, 15, 20, or 25 years
- Ideal for homeowners not receiving the solar tax credit
15-Year PLUS Loan Example: A $30,000 loan at 7.99% APR would have consistent monthly payments of $291.92 throughout the loan term.
PowerSwitch ZERO: Deferred Payment Options
PowerSwitch ZERO offers homeowners the flexibility to defer payments for 12 or 18 months, providing immediate cash flow relief during the solar installation period. For homeowners considering energy storage alongside their solar installation, battery systems can be financed through similar loan structures to maximize energy independence.
Key Features:
- 12 or 18-month payment deferral period
- Interest accrues during promotional period
- Available for solar, batteries, and energy efficiency upgrades
- Suitable for second homes and rental properties
- No prepayment penalties
Important Note: Interest accrues during the promotional period and is waived only if the loan is paid in full by the end of that period.
Qualification Requirements & Credit Guidelines
Credit Score Requirements
Mosaic has more flexible credit requirements compared to traditional banks:
- Minimum FICO Score: 600 (some sources indicate 640)
- Preferred Score: 700+ for best rates
- Credit Check Process: Soft pull for pre-qualification, hard pull at funding
- Credit Frozen: Must unfreeze Experian before application
Income and Employment Verification
Mosaic accepts various forms of income verification:
- Total Household Income: All residents’ verifiable income counts
- Acceptable Income Types: Wages, bonuses, pension, dividends, investment income, alimony
- Maximum Approval: Up to $175,000 loan amount
- No LTV Requirements: Unlike home equity loans, no loan-to-value calculations
Property Eligibility
- Primary Residences: Single-family homes owned by borrower
- Second Homes: Vacation homes and rental properties eligible
- Manufactured Homes: Must be on permanent foundation with owned land
- Grid-Tied Systems: Off-grid installations not eligible
- Ownership: Borrower must be on title or control through trust/LLC
Rate Comparison & Market Analysis
Mosaic vs. Traditional Bank Loans
| Feature | Mosaic Solar Loans | Traditional Bank Loans |
|---|---|---|
| Interest Rates | 0.99% – 10.59% APR | 5% – 12% APR |
| Approval Time | Same day to instant | 2-6 weeks |
| Credit Requirements | 600+ FICO | 700+ FICO typically |
| Collateral | Unsecured | Often requires home equity |
Mosaic vs. Other Solar Lenders
When comparing Mosaic with other solar financing providers in the market, homeowners should evaluate factors such as interest rates, loan terms, qualification requirements, and customer service quality. Each lender offers different advantages, so it’s important to obtain quotes from multiple sources to find the best fit for your specific financial situation and solar project needs.
Application Process & Timeline
Step-by-Step Application Guide
- Pre-Qualification: Soft credit check through installer or Mosaic portal
- System Design: Work with installer to finalize solar system specifications
- Loan Application: Complete full application with income verification
- Underwriting: Mosaic reviews application (90% of stipulations resolved in under 10 minutes)
- Approval: Receive loan terms and sign documents
- Installation: Solar system installed by certified contractor
- Funding: Loan funds disbursed upon system completion
Required Documentation
- Government-issued photo ID
- Proof of income (pay stubs, tax returns, bank statements)
- Property ownership documentation
- Solar installation contract
- Homeowner’s insurance information
Timeline Expectations
- Pre-qualification: Instant to same day
- Full Approval: 1-3 business days
- Documentation Review: 24-48 hours for stipulations
- Funding: Next-day funding after installation completion
Payment Examples & Calculations
Real Payment Scenarios
Scenario 1: $20,000 CHOICE Loan (15 years, 6.99% APR)
- Monthly payment before tax credit paydown: $180.18
- Required 30% paydown: $6,000 (from solar tax credit)
- Monthly payment after re-amortization: $142.62
- Total interest paid: $11,671
Scenario 2: $35,000 PLUS Loan (20 years, 7.99% APR)
- Consistent monthly payment: $291.78
- Total interest paid: $35,027
- No required prepayment
Scenario 3: $25,000 PowerSwitch ZERO (18-month deferral, 4.99% APR, 20 years)
- No payments for 18 months
- Monthly payment after deferral period: $164.43
- Interest accrued during deferral: $1,873
- Total interest if paid as scheduled: $21,593
Impact of Solar Tax Credit
The federal solar tax credit faces uncertainty in 2025, with Congress proposing to terminate the 30% residential solar tax credit as part of the Budget Reconciliation process. The House has passed legislation that would end the credit, and the Senate is expected to vote on similar measures. For detailed information about federal solar tax credit eligibility and requirements, homeowners should understand current tax credit impact:
- $30,000 System: $9,000 tax credit available (if legislation doesn’t pass)
- CHOICE Loan Strategy: Use tax credit for required 30% paydown
- PLUS/ZERO Loans: Optional prepayment to reduce total interest
- Cash Flow Impact: Tax credit typically received 3-15 months after installation
- ⚠️ Legislative Risk: Proposed legislation could end the 30% tax credit by December 31, 2025, or 180 days after bill enactment
Pros, Cons & Customer Reviews
Advantages of Mosaic Financing
- Market Leadership: Major residential solar lender with over $13 billion funded and 360,000+ households served
- Flexible Products: Three distinct loan structures for different needs
- Fast Approval: Same-day decisions with minimal documentation
- Competitive Rates: Among the lowest in the solar financing market
- No Collateral: Unsecured loans don’t risk home equity
- Installer Network: Wide network of certified solar contractors
- Multiple Properties: Loans available for second homes and rentals
Potential Drawbacks and Limitations
- Bankruptcy Status: Company filed Chapter 11 in June 2025, creating uncertainty for new loans
- Customer Service: Mixed reviews regarding responsiveness and support quality
- Installer Dependency: Must work through approved installer network
- Rate Variability: Actual rates may be higher than promotional rates
- CHOICE Loan Complexity: Re-amortization structure can be confusing
- Limited Direct Access: No direct-to-consumer loan applications
Customer Experience Analysis
Based on online reviews and Better Business Bureau ratings:
- Positive Feedback: Fast approval process, competitive rates, helpful during installation
- Common Complaints: Customer service responsiveness, loan transfer difficulties, unclear terms
- BBB Rating: Mixed reviews with most issues related to communication
- Resolution: Most issues stem from installer communication rather than Mosaic directly
Alternative Financing Options
While Mosaic offers competitive solar financing, homeowners should explore all available options. For a comprehensive comparison of solar financing options including loans, leases, and cash purchases, consider these alternatives:
Home Equity Loans/HELOC
Pros: Often lower interest rates, tax-deductible interest, direct bank relationship
Cons: Home as collateral, longer approval process, requires significant equity
Typical Rates: 6% – 9% APR (2025)
Personal Loans
Pros: No collateral required, flexible use of funds, direct lender relationship
Cons: Higher interest rates, shorter terms, stricter credit requirements
Typical Rates: 8% – 15% APR
Cash Purchase Considerations
Pros: No interest payments, immediate ownership, maximum tax credit benefit
Cons: Large upfront investment, opportunity cost of capital
Break-even: Typically 6-10 years depending on local electricity rates
Solar Leases and PPAs
For homeowners who prefer no upfront costs, solar leases and power purchase agreements offer alternative paths to solar adoption:
Pros: No upfront costs, maintenance included, predictable payments
Cons: No ownership benefits, limited savings, complex transfer requirements
Recommendation: Generally less favorable than loan options for most homeowners
Expert Tips & Best Practices
How to Secure the Best Rates
- Improve Credit Score: Pay down existing debt and resolve any credit issues before applying
- Compare Multiple Quotes: Get solar quotes from several installers to compare financing options
- Consider Shorter Terms: If cash flow allows, shorter loan terms offer lower rates
- Enroll in Autopay: Take advantage of the 0.50% rate reduction
- Time Your Application: Apply when credit profile is strongest
Timing Your Application Strategically
- Credit Optimization: Allow 3-6 months to improve credit score before applying
- Tax Credit Timing: Act quickly due to proposed legislation that could end the 30% tax credit by December 31, 2025
- Seasonal Factors: Q4 installations may face equipment delays
- Rate Environment: Monitor interest rate trends for optimal timing
Negotiating with Installers
- Multiple Quotes: Use competing offers to negotiate better terms
- Total Project Cost: Focus on overall cost, not just monthly payments
- Financing Options: Ask about multiple lender options beyond Mosaic
- System Specifications: Ensure loan amount matches actual project needs
Red Flags to Avoid
- Pressure Tactics: Avoid installers pushing immediate decisions
- Unclear Terms: Ensure you understand loan structure and re-amortization
- Excessive Fees: Watch for hidden origination or processing fees
- Unrealistic Promises: Be skeptical of “too good to be true” rate offers
- Poor Communication: Choose installers with clear, responsive communication
Conclusion: Is Mosaic Right for Your Solar Project?
While Mosaic filed for Chapter 11 bankruptcy in June 2025, the company expects to remain fully operational during its restructuring process. Having funded over $13 billion in loans and helped more than 360,000 households go solar, Mosaic has historically offered competitive rates and flexible financing options with three distinct loan products.
The CHOICE loan is ideal for homeowners planning to use their solar tax credit for loan paydown, while the PLUS loan works well for those combining solar with other home improvements. PowerSwitch ZERO offers valuable payment flexibility during the initial months after installation.
However, given Mosaic’s current bankruptcy status and the uncertain legislative environment surrounding solar tax credits, prospective borrowers should carefully evaluate their options. Success with any solar financing depends heavily on working with a reputable solar installer who can clearly explain loan terms and provide ongoing support.
Before committing to any solar loan, obtain quotes from multiple installers, verify current rates and lender availability, and carefully review all loan documents. With proposed federal legislation potentially ending the 30% solar tax credit by December 31, 2025, homeowners considering solar should act quickly to secure financing and complete installations while the full tax credit remains available.