Many people choose to take out a loan to pay for their system, since paying for a system in-full is usually a substantial out-of-pocket expense for most households. Financing your solar system through a lender reduces the upfront cost and can often be structured to eliminate your electric bill by effectively replacing it with a loan payment. The loan has a shorter term than the life of a solar power system, which means that you will get significantly more financial benefits when your loan is paid off.