I’m a Financial Expert: A $15K Personal Loan Can Save You $6K a Year — Here’s How

Martin Dasko

Mon, Jul 7, 2025, 11:56 AM 5 min read

In a recent story on Business Insider, it was noted that a couple took out a personal loan for $15,000 and are now saving $500 monthly on their electricity bill because they invested in solar panels.

Read Next: 3 Signs You’ve ‘Made It’ Financially, According to Financial Influencer Genesis Hinckley

Consider This: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses

While the concept of borrowing money upfront to save in the long run makes sense, the reality is that Americans are drowning in debt. According to data from the Federal Reserve Bank of New York, household debt for Americans reached an all-time high of $18.2 trillion in the first quarter of 2025

We will explore how a couple saved $6,000 a year by borrowing $15,000 and then try to determine if this is a wise financial move.

Due to the unique weather conditions where they live, which can include hurricane season, an ice storm or sweltering heat, the couple knew they had to stay prepared. When they experienced an air conditioning issue in the summer of 2024, they decided it was time to switch to solar.

They took out a personal loan of $15,000, and the husband decided to complete the entire installation himself to save $15,000 in labor costs. For a 3,000-square-foot home, they needed 30 panels rated for 450 watts each. They determined that the materials and tools would cost between $12,000 and $15,000.

The project took a few weeks to complete, and within the first month, they were able to cut their monthly electricity bill in half, saving approximately $500 per month.

Discover More: I’m a Financial Advisor — My Wealthiest Clients All Do These 3 Things

They were approved for a $16,000 loan over 48 months, and the funds were deposited into their account the same day. The loan has no penalties for early payoff, and they plan to use the savings to pay off the solar investment. The $500 saved monthly on the electrical bill is being put towards paying down the loan, but the payment amount was never specified.

Does it make sense to borrow money through a personal loan up front for long-term savings? Keep reading for a financial expert’s take on the situation.

“If taking out a loan can save you money, you can call it a net win,” said Melanie Musson, a finance expert with InsuranceProviders.com. “If taking out a loan will help you break even, it’s not worth the financial burden of taking out a loan.”