Here’s how the Fed’s interest rate cut is going to help you go solar
The Federal Reserve cut interest rates, and while it’s meant to support the broader economy, here’s how it helps homeowners go solar.
Last week, the Fed cut interest rates by a half point, lowering the benchmark lending rate to 4.75-5.25%. Over the past few years, higher interest rates meant that financing a solar system was more expensive, which pushed out the break-even point for those investing in solar. Many homeowners and business owners became hesitant to take the plunge.
But now, the Fed’s September rate cut – combined with dropping installation costs – makes going solar even more attractive. Homeowners will see faster returns on their solar investments compared to a year ago. According to a blog by EnergySage, this 50-basis-point reduction means that a $30,000 home solar system could cost around $3,000 less over the course of a 20-year loan, thanks to reduced interest payments.
Even though solar is a solid investment in any interest-rate environment, lower rates make the math even better. As Spencer Fields, director of insights at EnergySage, puts it: “This rate cut will save solar shoppers thousands of dollars in interest over the lifetime of their solar panels. Most solar adopters finance their system with a loan, so dropping interest rates will help make solar more affordable and likely drive up demand for new commercial and residential solar installations.”
How do lower interest rates make rooftop solar cheaper?
Your savings with solar depends on several factors, including local electricity prices, how much energy you use, and state policies like net metering. But if you’re financing your system with a loan, the interest rate is a critical part of the equation.
Just like with a mortgage, the lower the interest rate, the less you pay over time. The average home solar panel system costs about $30,000, and according to EnergySage, 85% of homeowners finance their solar system. A 4.75% interest rate on a $30,000, 20-year loan would cost you around $16,500 in interest. At a 5.50% interest rate, that same loan jumps to $19,500 in interest. That’s a $3,000 difference just from the Fed’s rate cut.
And if you manage to pay off your loan in less than 10 years, the combination of the rate cut and early repayment could save you as much as $10,000 in interest for a 20-year loan.
It’s also important to consider the full cost of the loan. Fees and other charges can vary depending on your lender. That’s why it’s crucial to look at the Annual Percentage Rate (APR), not just the interest rate, as the APR gives you the full picture of your costs.
A faster payback period for solar
Solar isn’t just a green choice – it’s a smart financial move. Many homeowners pay off their solar loans in less than 10 years, which means everything after that is pure savings. If you lock in a lower interest rate, you’ll hit that payback period even faster.
EnergySage reports that the average homeowner using their Marketplace pays off their solar loan in under 10 years, even if they take out a 20-year loan. With rates down, you’ll be able to reach that milestone sooner and save even more in the long run.
Should you wait for interest rates to drop further?
There’s a lot of talk about the Fed cutting rates again by the end of the year and possibly more in 2025. But trying to time interest rate changes can be as tricky as timing the stock market. While the Fed has hinted at future rate cuts, nothing is set in stone. If inflation shifts or the job market takes an unexpected turn, the Fed could adjust its course. So while it’s tempting to wait, there’s no guarantee rates will keep falling.
Read more: Here’s how much money you’ll get with the Inflation Reduction Act
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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Environment
BYD Yangwang launches ultra-swanky U8L SUV with 24k gold emblems (don’t worry, this one floats too)
BYD’s ultra-luxury sub-brand, Yangwang, launched its fourth all-electric model in China, and it’s another design marvel. Like its U8 predecessor, the Yangwang U8L SUV has “Emergency Float Mode.” Plus, this one can tank turn, is powered by four motors, and has 24-karat emblems. Check out one of the most expensive new BEVs in China.
Yangwang, which directly translates to “looking up” or “admire,” is an ultra-premium brand under the BYD umbrella introduced in 2023. The luxury-centric marque turned some heads out of the gate at the 2023 Shanghai Auto Show, where it unveiled the U8 SUV, which can go amphibious in emergencies and crabwalk.
Since then, Yangwang has followed up with a 1,200-horsepower electric supercar called the U9, hands down the most beautiful vehicle I saw during my visit to the 2025 Shanghai Auto Show.
In early 2024, Yangwang unveiled its first sedan, the 500-mile range U7, to complete an initial trio of flagship models. By August, we learned Yangwang was hard at work on a fourth model – a third-row variant of the U8 SUV called the U8L – which promised to be longer and even more luxurious.
Today, Yangwang officially launched the U8L in China, beginning in a single “Dingshi Edition” trim that starts at RMB 1.28 million ($179,800) – debuting as one of the most expensive models amongst all Chinese automakers.
Yangwang U8L offers Rolls-Royce-style luxury
Today’s launch marks Yangwang’s deeper push into the luxury SUV market in China, looking to compete against brands like Mercedes-Benz and Range Rover. Yangwang’s new U8L takes the U8 to another level, offering more space and other comforts.
For example, the Yangwang U8 measures 5,319 mm long, 2,050 mm wide, and 1,930 mm tall, with a wheelbase of 3,050 mm. In comparison, the new U8L measures 5,400 mm long, 2,049 mm wide, and 1,921 mm tall, with a wheelbase of 3,250 mm.
The longer length and wheelbase allow for a new third row atop BYD’s e4 platform, which also houses four electric motors. That powertrain configuration combines for 880 kW (1,180 horsepower) and peak torque of 1,280 Nm, accelerating from 0 to 100 km/h (0-62 mph) in 3.5 seconds. Not bad for an SUV.
Per Yangwang, the U8L also comes equipped with BYD’s DiSus-P body control system—the Chinese automaker’s most advanced version, enabling premium comfort and stability on any terrain. The U8L also features BYD’s most advanced ADAS, “God’s Eye A.” In the images above, multiple sensors are visible above the windshield.
Other features include emergency flotation mode, blown tire stability, tank turns, and a crabwalk. Plus, fully reclining seats, window privacy curtains, and a rear storage fridge for your Cristal. Due to its size, the Yangwang U8L’s all-electric CLTC range is only 200 km (124 miles), but it features a hybrid range extender that boosts its overall range to 1,160 km (700 miles).
What do you think about this SUV?
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The bZ7 is about the size of a Tesla Model S and way nicer than you’d expect. Toyota’s new flagship EV is not only stunning-looking, it’s also loaded with advanced tech.
Meet the bZ7, Toyota’s new flagship EV
Toyota’s joint venture in China, GAC-Toyota, unveiled official images of the bZ7 this week, its new flagship all-electric sedan.
The bZ7 is 5,130 mm long, which is slightly longer than the Tesla Model S and BYD Han L. Although it has Toyota’s updated “hammerhead” front end design, like the new Camry and Crown, the flagship EV is a big step up from the Toyota vehicles we see on the road today.
Toyota said its new EV has “a luxurious and elegant figure,” and we’d have to agree. From the side, it has a sleek, fastback design that blends sporty and elegant. The long, triangular side windows open up the interior.
The bZ7 is also Toyota’s most advanced EV yet. It will be the first vehicle to feature Xiaomi’s “Human x Car x Home” smart ecosystem, which unlocks new functions such as controlling smart home appliances directly from the vehicle’s infotainment system or your smartphone.
Forgot to set the air? Xiaomi’s smart tech allows you to control it on the go. During its tech day event in June, Toyota announced new partnerships with Xiaomi, Momenta, and Huawei, or what it called the “car industry bigwigs,” for the latest tech and software.
The bZ7 has a Lidar installed on the roof, which will be used to support Momenta’s latest smart driving system, Momenta 6.0. It’s expected to be offered on higher trim options.
On the inside, the cabin is a step change from most Toyota models with a minimalist, elegant layout. It features a floating central touchscreen, a driver display screen, and a wireless phone charger.
Toyota’s flagship EV will also use Huawei’s electric motors and its new HarmonyOS cockpit system. According to Li Hui, the General Manager of Toyota China, “To deliver cars that people want in China, we need Chinese brains and hands involved in development.
We will learn prices, battery specs, and range closer to the bZ7’s official debut, which is expected later this year. Toyota’s new flagship EV will join the bZ3X and bZ4X as it fights for its spot in China’s competitive electric vehicle market.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from British bike maker Boost, Dahon launching an IPO, the NYPD may soon confiscate non UL-certified e-bikes, Honda has a new e-motorcycle coming, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):
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