Can You Really Get Solar Panels for Free?

The Truth Behind ‘Free Solar’ Advertisements

If you are researching solar power, you’ve probably come across ads for “free solar,” “no-cost solar,” or “get paid for solar production.” It is not uncommon for clients to ask us how they can get the “free solar” they saw online. These ads sound great and can get you to click on them. But is it real?

Unfortunately, as with many things in life, if it sounds too good to be true, it probably is. Even in cases where the equipment is legitimately installed free of charge, there is a catch. You don’t own the equipment and have to pay for the power it produces. We recommend following the Department of Energy’s advice on companies making such claims. Be wary, explore your solar options and make sure you understand the real truth and fine print.

Can You Qualify for ‘Free Solar’ From the Government or Your Utility Because of Your Zip Code?

Zip code information does not necessarily change what federal incentives you qualify for. We recommend you consult your tax advisor for full details on your financial situation and how the federal tax credit would affect you. While there are some government agencies with programs to subsidize panels, they often must meet strict requirements. There is currently a 30% federal tax credit claimed against the tax liability of residential (Section 25D) and commercial and utility (Section 48) investors in solar energy property as defined with the Inflation Reduction Act. Additionally, some states offer other incentives as well such as Wisconsin’s Focus on Energy program or Illinois’ Solar Renewable Energy Credit (SRECs) program. When you add all of the incentives up, it does, in some cases, cover a substantial percentage of the cost of the panels and installation. Again, zip code has nothing to do with your ability to go solar other than signify the state you reside to determine any incentives available.

Do Solar Companies Have to Provide Solar Panels for Free if You Ask?

This is another common claim in many misleading online ads. It is, once again, completely false. To quote the Department of Energy: “The federal government does not offer any programs for free home solar panel installations, nor does the government require companies to grant solar panels for free to customers.” It is a good idea to steer clear of any companies promoting ads making such false claims.

Can I Get Solar with No Upfront Costs?

There are means in which solar companies will install panels with no upfront costs. These come in the form of solar leases or power purchase agreements (PPAs). These types of programs are often catered towards larger commercial and non-profit businesses operators, academic institutions and municipalities due to the larger size of the systems, overall cost and investor preferences. With a solar lease, you pay a set monthly fee in exchange for the power provided by the array. With a power purchase agreement, you agree to buy power produced by the array, but the cost is based upon the power purchased rather than a set fee. In either case, the charge is usually less than what you would pay the power company. However, you do not own the system and will be required to share the savings with the array’s owner in exchange for not having any upfront costs. Additionally, you will most likely not qualify for tax incentives, since the array is not technically owned by you.

There are reputable, honest companies which offer commercial lease and PPA options which can be beneficial to all parties. Just make sure that the company is upfront about you not owning the equipment and the monthly fee associated with any long-term agreement. Learn more: PPA agreements and Commercial Operating Leases.

Is ‘Free Solar’ and Zero-Down Solar the Same?

No. Zero-down relates to solar financing with no down-payment, not the cost of the array. Financing a solar array allows you to own the array, making you eligible to apply for incentives. Through financing, it is also possible for a loan payment to be equal to or less than your current electricity bill, saving money on day one. We work with proven and trusted lenders to give our clients the best options and rates for zero-down solar loans. Read more: lending options.

“Free Solar” is often used in misleading online ads to grab attention quickly in a social media feed. These companies want you to focus on the monthly solar loan payment being less than your monthly electric bill. In doing so, the solar isn’t costing you more than you would have typically paid the utility each month. Therefore, the solar array did not increase your monthly expenses, so in essence it was “free”. Regardless of how you spin your energy savings by going solar, there is no such thing as “Free Solar.”

Solar Will Save You Money, But the Installation Won’t Be Free

Unless you are one of the tiny group of people who qualify for enough state and federal incentives to offset the entire array cost, free solar simply doesn’t exist. Ads touting free solar are at best misleading and at worst fraudulent. There are ways to reduce the upfront cost of solar. Perhaps the most important of these is to make sure you apply for every federal and state incentive available.

Regardless, if you go solar, make sure to do so with a reputable business. Companies promoting no-cost solar might also use gimmicky or high-pressure sales tactics, passing extra costs and hidden fees on to the client. A reputable solar installer will have transparent pricing and explain all the costs and incentives available to you. Read online reviews and check into their Better Business Bureau (BBB) rating. Contact your state solar energy association for a list of reputable companies in your area. A little bit of research can go a long way in helping you make an informed decision.

Finally, it is important not to be put off owning a solar array, simply because several companies run misleading ads. Solar might not be free, but if you work with a reputable company, the long-term energy savings will be more than enough to cover the cost of the equipment and installation. Let us help you navigate the process and start saving on your energy bills today.