The default rates of residential solar loans can vary depending on several factors such as the borrower's creditworthiness, the terms of the loan, and the performance of the solar system. Generally, residential solar loans have shown to have lower default rates compared to other consumer loans.

According to a report by the National Renewable Energy Laboratory (NREL), the default rates of residential solar loans were found to be around 0.87% for loans originated in 2016 and 2017, while the average default rate for unsecured consumer loans was around 3.5%.

Furthermore, a study conducted by the Lawrence Berkeley National Laboratory (LBNL) found that homeowners who installed solar systems had a higher credit score, lower debt-to-income ratio, and lower default rates than homeowners who did not install solar systems.

These findings suggest that residential solar loans are relatively safe for lenders and have a lower risk of default compared to other consumer loans.

Schedule time with Atmos Financial for more information on building a solar lending program. 

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