The startup presents a platform for submitting solar roof loans and installations
The solar pitch on the roof has never been easy to make: energy costs are high, the strain on the electric grid is real, and the sun shines for free. But the math has gotten tougher, as federal tax credits disappear and aid incentives dry up.
Enter loanTERRA, a Seattle startup that thinks transparent financing and vetted installers can keep the solar dream alive for everyday homeowners.
Bill Paulen, CEO and founder of loanTERRA, brings decades of experience in finance, including working at major banks and as president and CEO of several Washington credit unions.
In those roles, he saw that payday loans are a good fit for nonprofits, member-owned credit unions and community banks looking to diversify their debt and avoid competition from fintechs. He was also troubled by the dominance of national solar lenders who rely on undisclosed fees from dealers, quietly passing the cost on to consumers.
Paulen created loanTERRA to partner with credit unions and community banks, offering their customers an easy-to-use loan agreement while financial institutions provide capital. Banks pay loanTERRA for each signed solar deal and loan servicing costs.
The startup recently launched its platform, which also provides connections to reputable solar panel and hardware manufacturers and installers to ensure the project is sized, installed correctly and works as planned.
Paulen has signed on his first lending partner, which is based in Wyoming and has raised funding from an angel investor.
He’s optimistic that residential solar will continue to move forward despite the loss of federal tax support. The Republican’s One Big Beautiful Bill extended the tax credits to 30% for the cost of home solar systems through the end of 2025, instead of the planned end date of 2032.
Homeowners can still indirectly benefit from the tax break granted to solar installers until 2027. It requires consumers to sign a lease with an installer or developer to use a solar system on their home, or to enter into a power purchase agreement where the developer sells electricity to the homeowner at a fixed rate below what the local utility charges.
Paulen, however, said the economics are better for residential customers if they can buy solar systems directly.
LoanTERRA’s interest rates are often higher than those offered by companies that include multi-thousand dollar vendor fees in their sales contracts, but the initial loans are for smaller amounts. Paulen served on the task force that drafted the Washington Consumer Protection Act, creating language requiring those fees to be disclosed.
While experts predict a dip in residential solar installations this year, the Solar Energy Industries Association and Wood Mackenzie expect growth to continue at an annual rate of 7% between 2027 and 2030.
Even with a very challenging economy, solar photovoltaics remain a cheap, fast way to generate clean energy, and there is a movement to add batteries to the mix, allowing the system to provide power around the clock. A recent poll found that a majority of Americans surveyed support solar energy, regardless of political leanings.
Paulen said loanTERRA has many interests that he is willing to use. That includes customer-focused credit unions, solar companies, consumers looking to reduce their climate impact and benefit from off-grid energy, and a warming planet.
“We’re bringing clean energy online. We’re reducing fuel consumption,” he said. “In my entire career, this is the only time when … a personal belief or personal interest aligned with a business opportunity and that made this job very easy.”
