Solar Financing Startup loanTERRA Aims to Keep Rooftop Panels Affordable as Tax Credits Fade

As energy costs continue to climb and grid reliability becomes a growing concern, rooftop solar has never seemed more appealing. The sun provides free energy, and with the right setup, homeowners can reduce their electricity bills while shrinking their carbon footprint. But the financial landscape for residential solar is shifting—federal tax incentives are set to expire, and utility rebates are becoming harder to secure.

Enter loanTERRA, a Seattle-based startup betting that transparent financing and trusted partnerships can keep solar accessible even as traditional incentives disappear.

A Veteran Financier with a Mission

At the helm of loanTERRA is Bill Paulen, a seasoned finance executive with decades of experience at major banks and credit unions across Washington state. His career has spanned leadership roles at multiple financial institutions, where he witnessed firsthand the challenges and opportunities in renewable energy financing.

Paulen saw an opportunity to bridge two worlds: credit unions and community banks seeking to diversify their loan portfolios, and homeowners eager to adopt solar but wary of opaque pricing and hidden fees. He also grew frustrated with the dominance of large national solar lenders who often bundled undisclosed dealer fees into their loan agreements—costs that quietly inflated the price for consumers.

That frustration became the catalyst for loanTERRA, a platform designed to connect credit unions and community banks with vetted solar installers and manufacturers. The model is simple: banks provide the capital, loanTERRA supplies the technology and customer pipeline, and both parties share in the success of each financed project.

How It Works

LoanTERRA’s platform does more than just facilitate loans. It also ensures that homeowners are connected to reputable solar panel manufacturers and certified installers. This end-to-end approach guarantees that systems are properly sized, professionally installed, and optimized for long-term performance.

The startup recently launched its platform and has already signed its first lending partner, a credit union based in Wyoming. Paulen has also secured funding from an angel investor to fuel growth.

Banks pay loanTERRA a fee for each closed solar deal and for ongoing loan servicing, creating a sustainable revenue stream for the startup while giving financial institutions a new way to serve their communities.

The Changing Economics of Solar

The timing is critical. The federal solar tax credit, which currently covers 30% of the cost of residential solar installations, is set to expire at the end of 2025—years earlier than previously planned—due to provisions in the Republican-backed “One Big Beautiful Bill.” This change has sent ripples through the solar industry, with many experts predicting a short-term slowdown in residential installations.

However, homeowners aren’t entirely without options. A tax break for solar installers remains in place through 2027, which indirectly benefits consumers who choose to lease their systems or enter power purchase agreements (PPAs). Under these arrangements, a developer installs and maintains the solar equipment, selling the electricity back to the homeowner at a rate lower than the local utility.

But Paulen argues that purchasing a system outright is still the better financial move for most homeowners. LoanTERRA’s interest rates may be slightly higher than those of national lenders who bake dealer fees into their loans, but the total loan amount is lower because those hidden charges are eliminated. In fact, Paulen played a key role in crafting Washington’s Solar Consumer Protection Act, which mandates the disclosure of such fees.

Industry Outlook

Despite the headwinds, the long-term outlook for residential solar remains optimistic. The Solar Energy Industries Association (SEIA) and Wood Mackenzie project that the market will rebound and grow at an average annual rate of 7% between 2027 and 2030.

Solar photovoltaics continue to be the fastest and most cost-effective way to deploy clean energy. There’s also a growing trend toward pairing solar systems with battery storage, enabling homeowners to store excess energy and use it during peak hours or outages. This shift toward virtual power plants—networks of distributed energy resources—could further accelerate adoption.

Public support for solar remains strong across the political spectrum. A recent poll found that a majority of Americans, regardless of party affiliation, back solar energy as a key part of the country’s energy future.

A Win-Win for All

For Paulen, loanTERRA isn’t just a business—it’s a mission. The platform aligns his personal commitment to combating climate change with a scalable business model that serves multiple stakeholders.

“Clean energy is something I’ve always believed in,” Paulen said. “But this is the first time in my career where my personal values and a real business opportunity have aligned so perfectly. That makes the work not just easier, but deeply rewarding.”

By empowering credit unions, supporting local solar companies, and making clean energy more accessible to homeowners, loanTERRA is positioning itself at the intersection of finance, technology, and sustainability. As the industry navigates a period of transition, the startup’s transparent, community-focused approach could prove to be exactly what the market needs.

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