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Propel Solar Financing FAQ
Every common question about Propel Financing by Concert Finance, answered plainly. No jargon, no pressure, no obligation.
Propel Financing is one of the more unique solar products available in California right now -- and it works differently enough from a traditional loan or PPA that homeowners usually have real questions before they're comfortable moving forward. These are the ones we hear most often.
The Basics
What is Propel Financing by Concert Finance?
Propel Financing is a solar loan product offered exclusively by Concert Finance through authorized installer partners like Solar-Advisors.org. Concert Finance temporarily holds commercial ownership of your solar system for five years, which unlocks federal commercial clean energy tax credits and accelerated depreciation that are no longer available to residential homeowners. The value of those credits is passed to you as an upfront discount -- typically 30 to 40 percent of total system cost -- applied before a single dollar is financed. You then pay a fixed monthly loan payment for 25 years, and full ownership of the system transfers to you at year five.
How does the Propel discount work?
Before your loan is issued, Concert Finance calculates the value of the commercial tax credits and accelerated depreciation they can access on your system. That value is passed directly to you as a percentage reduction on your total system cost. For most California homeowners, this Propel discount is 30 to 40 percent. In designated Energy Communities, the discount can be higher. Your loan is then based on the reduced system cost, not the original price -- so you borrow less from day one. For a real example: a Kernville homeowner had a $58,218 system cost reduced to a $35,392 financed amount after a $22,827 Propel discount (39.2%).
Is this a PPA? A lease? Or something different?
Propel is a loan, not a PPA or lease. The distinction matters. With a PPA or lease, you rent electricity from a third party and may never own the system. With Propel, you have a Concert Finance loan with a fixed payment, and you own the system outright at year five. The energy service agreement component (the temporary commercial ownership by Concert Finance) is what enables the upfront discount -- but from a homeowner experience standpoint, it functions like a straightforward solar loan with a better starting number.
Payments and Loan Terms
Will my Propel payment ever go up?
Never. Your Propel payment is fixed for the full 25-year loan term and does not escalate. California utility rates have averaged approximately 6 percent annual increases over the past decade. Every year that passes, the gap between your locked-in Propel payment and rising utility bills grows larger in your favor. Most California homeowners using Propel see positive cash flow from day one or within the first few years.
Can I pay off my Propel loan early?
Yes. Propel Financing carries no prepayment penalty. You can pay off the remaining principal at any time and accelerate ownership on your schedule. There are no exit fees or early termination costs.
What is a reamortization and does Propel offer it?
A reamortization lets you make a lump sum payment toward your loan principal and have your remaining monthly payment recalculated based on the lower balance -- effectively reducing your payment going forward. Propel offers up to three reamortizations during the loan term. This is rare in the solar lending market and gives you meaningful long-term flexibility. You are never required to make a lump sum payment, but the option is there if your situation changes.
What interest rate does Propel carry?
Propel offers multiple rate tiers based on credit profile. Real California proposals have shown rates in the 6 to 8 percent range on 25-year terms. Because the Propel discount reduces the loan principal by 30 to 40 percent before financing, the effective cost of money is substantially lower than it appears when compared against traditional solar loans that carry dealer fee markups on top of their stated rate. Your advisor will confirm the applicable rate based on your credit tier at time of application.
$271/mo
Kernville homeowner Propel payment vs. $443 prior utility bill
39%
Propel discount applied before financing on a real CA proposal
$146K
Estimated 25-year savings for the same Kernville homeowner
Year 5
Full system ownership transfers to the homeowner at no additional cost
Ownership and Your Home
When do I actually own the solar system?
Full ownership transfers to you at year five. Concert Finance holds temporary commercial title during years one through five to access the commercial tax credits and pass the value to you as the upfront discount. At year five, ownership transfers to you outright at no additional cost. The system then adds to your home's appraised value and produces electricity at zero marginal cost for the remaining life of the equipment (typically 25 to 30 years total).
What if I sell my home before year five?
The Propel loan and the energy service agreement transfer to the new buyer together as part of the home sale. You can also pay off the outstanding loan balance at the time of sale, in which case the system transfers to the buyer as owned equipment. Unlike PPA lease agreements -- which often require credit checks and complex negotiations with the solar company before closing -- Propel transfers are handled similarly to a standard mortgage payoff or assumption. Your real estate agent and title company will manage the details.
Does solar add value to my home with Propel?
Yes. Once ownership transfers at year five, the system adds directly to your home's appraised value. Studies have shown California solar homes sell for a meaningful premium over comparable non-solar homes. Before year five, the system is under Concert Finance's temporary commercial ownership, but the loan is a secured asset and the home benefits from lower utility costs -- which appraisers increasingly factor in.
Qualification and Eligibility
Who qualifies for Propel Financing?
To qualify, you generally need to be a homeowner (not renter), own a single-family home (not a condo, townhome, apartment, or mobile home), have a minimum FICO credit score of 660, have a monthly electric bill of at least $100, and have lived at the property for at least 3 months. Propel is currently available in select California markets. LADWP customers are not currently eligible as Propel is not available in LADWP territory.
Is there a credit check for Propel?
Yes. Because Propel includes an actual Concert Finance loan, there is a formal credit application and underwriting process. The minimum FICO score is 660, which is lower than many traditional solar lenders. The credit inquiry is a standard hard pull as part of the loan application. Getting your free savings estimate from Solar-Advisors.org does not trigger a credit check -- that only happens when you move forward with a formal Propel application.
What is an Energy Community and does it affect my Propel discount?
Energy Communities are designated areas (typically areas with historic fossil fuel industry employment or affected by plant closures) that qualify for an additional federal tax credit adder. For Propel Financing, being in an Energy Community can increase the effective discount by several additional percentage points on top of the base 30 percent. Your Solar-Advisors.org advisor will confirm your Energy Community eligibility at the time of your proposal through the Concert Finance portal.
Propel vs. Other Options
How does Propel compare to a traditional solar loan with dealer fees?
Traditional solar loans typically include dealer fees of 10 to 30 percent buried inside the financed amount. You end up borrowing significantly more than the system is actually worth and paying interest on that markup for 25 years. Propel charges zero dealer fees. The Propel discount reduces your loan principal before financing, so you are borrowing the real, honest cost of the equipment -- not an inflated number. See our
full California solar financing comparison for a 25-year side-by-side.
How does Propel compare to a PPA or solar lease?
A PPA or lease means you never own the system and may face annual payment escalation of 1 to 3 percent per year. When you sell your home, you have to negotiate a lease transfer or pay a buyout fee -- which can complicate real estate transactions. With Propel, your payment is fixed for 25 years, you own the system at year five, there is no escalation, and the transfer process is simpler. See our
solar energy service agreement comparison for a full breakdown.
What hardware comes with a Propel installation?
Propel installations through Solar-Advisors.org use Qcells 410W solar panels and Enphase IQ8HC microinverters as standard hardware. Enphase battery storage is available as an add-on and may qualify for California SGIP rebates for eligible homeowners. All equipment is installed by licensed, vetted local contractors.
See What Propel Looks Like for Your Home
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