***Disclaimer***
Please know that while all efforts have been made to ensure the accuracy of the figures in this article as of the time of publishing, the factors used to calculate them such as current interest rates may change and are not under our control.
The information contained in this article is meant to be informative only and does not constitute financial advice. Potential Engineering Inc. is not liable for any decisions or consequences of decisions made using the information contained herein.
***Disclaimer***
Now that the Canada Greener Homes Loan and Grant programs have ended, the Alberta solar market has shifted toward a new trend: FinanceIt loans, often promoted as 3‑ or 5‑year 0% financing.
A quick Google search shows everything from glowing 5‑star reviews to class‑action lawsuits. If you’ve received a solar quote recently, you’ve probably seen FinanceIt included. So, what’s the deal? Is it worth using FinanceIt to finance your solar system?
Short answer: FinanceIt isn’t a scam, but the way solar installers are using it can mislead homeowners into overpaying for their systems.
This article breaks down how FinanceIt works, what you actually pay, and how it compares to alternatives like the Clean Energy Improvement Program (CEIP) or a bank line of credit.
What Is FinanceIt & How Does It Work?
FinanceIt is a private consumer lender that allows homeowners to split the cost of upgrades such as HVAC, windows, hot tubs or solar, into monthly payments instead of paying upfront. FinanceIt took the solar market by storm after the Greener Homes Loan and Grant ended in 2024/2025.
You get the upgrade; the installer gets paid in full and you pay FinanceIt over time. Simple, right?
Most solar installers using FinanceIt offer 3-5 year “interest free” plans to prospective buyers, which can sound amazing, especially given that the market was accustomed to the 10-year interest-free Greener Home’s Loan. However, unlike the Government’s loan, FinanceIt doesn’t cover the cost of financing 3-5 years without interest, and neither does the solar installer.
That leaves only one person left to pay, and that is you, the homeowner.
Remember that FinanceIt is a private company whose objective is to make money – and you are the only purchaser in this scenario, so they are making money off of you.
See this quote taken directly from this publicly available document
“Use one of our promotional programs such as “0% interest financing” or Interest Rate Buy-Down, offering customers a lower interest rate. These programs have a fee associated with them, but are a proven strategy for increasing sales”
or how about this one from their front page
“Interest rates typically range between 8.99% and 14.99%* – competitive with most credit cards.”
Aren’t credit cards the worst of the worst type of debt to get into? Not exactly the debt gold-standard for consumers.
The Hidden Cost of “Free” Financing
FinanceIt charges the installer a dealer fee to offer low‑rate or 0% promotional periods. This fee is a percentage of the total loan amount, and installers simply roll that fee into the system price, usually without telling you, and then dazzle you with the “0% offer”.
Let’s use real numbers from FinanceIt’s publicly available pdfs
For a 10kW system @2.5 $/W = $25,000
If you aren’t familiar with dollars-per-watt ($/W) then quickly watch our pricing video to get caught up.
Financeit’s typical dealer fee to offer 5 years at 0% can range from 15 to 25%. Let’s take a 20% fee for our example – that makes your system cost an extra $5,000, resulting in a $30,000 total ($25,000 + $5,000).
This means “0% interest solar” actually costs you $5,000 more on day one.
While this is not technically interest, it is added to your project price upfront. This is also assuming that your solar installer isn’t stacking any extra buffer in the base price for financing – which is unlikely.
So with FinanceIT’s promotional offer, you haven’t really gotten out of paying interest, instead you’ve pre-paid the interest by inflating the principal of your loan (the base quote price).
What about the loan payments?
Let’s assume you make regular payments of $150 (a typical payment) towards the loan during the promotional period. That leaves you with an outstanding principal of $21,000 at the end of 5 years. What happens then is that your interest rate will default to FinanceIt’s base fee (currently 13.49%) meaning that, if you amortize your loan for a further 15 years, your loan payments would jump to $272.51 per month!
So how does FinanceIT compare to other financing options?
Let’s assume that you want to pay your loan off in 20 years total.
Again, for a 10kW system @2.5 $/W = $25,000
The following table summarizes what you would pay using different financing options.
As you can see, the effects of which financing option you choose are enormous (and if you live in Okotoks or Airdrie, the CEIP is your best option by a long shot).
However, interest rates aren’t the only factor. Some of these loans are open, meaning you can pay them off at any time, whereas others aren’t. Some will hit your credit score and others won’t. Some may be available to you and others not. These are all factors to keep in mind.
Is FinanceIT ever worth it?
Yes, it can be in some cases. The following pros and cons sum it up:
✔️ Pros
- Fast approvals
- No need to refinance a mortgage in a hurry
- Works for people with weaker credit
- Great short‑term monthly payments during promo
- Can be useful as a bridge loan (more on this below)
❌ Cons
- Dealer fee increases system cost
- Post‑promo payments often shock homeowners
- High lifetime interest costs
- Some installers use it to inflate quotes without disclosure
How to get the most out of FinanceIt
FinanceIt can be a great tool if used wisely. The best way to use it is as a bridge loan, by signing up for the 5‑year promo for the low initial payments, and, within the promo period:
- Make lump‑sum payments to clear as much of the principal as you can
- Refinance the remaining balance with a LOC or mortgage later
- Ideally pay off the loan BEFORE the promo period ends
This approach allows you to enjoy the low upfront payments while avoiding high lifetime interest costs. Avoid having the loan amortize over 20 years
Closing Thoughts
We know we might get some heat for this article, but that’s ok. We take our goal of providing clear and transparent education on solar very seriously. Homeowners, like you, deserve to be informed before making a big decision like investing in solar.
If you want a solar quote for top quality system, an itemized quote and zero pressure to buy, we’d love to help.
