Glossary
Dealer fee
The dealer fee is a commission the lender charges the installer in exchange for offering you a solar loan with a low interest rate. The installer does not absorb it: it is added to the system price. That is why the same system can cost considerably more financed than paid in cash, even when the APR looks attractive.
What a dealer fee is
When a salesperson offers you a solar loan “at a very low rate,” that rate is not free. The lender makes up for it by charging the installer a percentage of the financed amount. The installer, in turn, inflates the system price to cover it. The result is that you pay low interest on a principal that is higher than the equipment is worth.
The lower the advertised rate, the higher the dealer fee tends to be. It is a direct relationship: the rate is bought with the fee.
Why it matters in Florida
Loans are the most common way to finance solar in Florida now that the 25D credit has ended for systems placed in service after 2025, and most loans sold door to door carry a dealer fee. The buyer sees a comfortable monthly payment and a low APR, and never learns that the system price includes a commission that does not buy a single extra panel.
The honest comparison goes like this: ask for the cash price of the same system and the financed price. The difference is the dealer fee. Then decide whether that difference is worth the comfort of the low rate, or whether a market-rate loan with no fee comes out cheaper in total.
Common mistake
Comparing two loans by APR. A very low-rate loan with a high dealer fee can cost more in total than a normal-rate loan with no fee, especially if you plan to pay it off early: the fee is already baked into the principal and is never refunded. In the solar loan explained we show you how to request both numbers and compare them.
Full guide: Solar loan explained: dealer fees, the real APR and what owning means →
Updated