Updated 1 day ago
Free Solar Panels: Debunking this Common Solar Myth
Written by Jamie Smith Jamie SmithJamie is a Content Writer and researcher at SolarReviews. A recent graduate of La Salle University in Philadelphia, Jamie earned her B.S. in communica...Learn more , Edited by Catherine Lane Catherine LaneCatherine has been researching and reporting on the solar industry for five years and is the Written Content Manager at SolarReviews. She leads a dyna...Learn more
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If you’ve ever thought about installing a solar system to power your home, chances are you've come across solar companies advertising “free solar panels”. Getting solar panels at no cost sounds like a no-brainer, right?
But anything that sounds too good to be true probably is. Free solar panels aren’t actually free. Free solar ads are a marketing tactic used to promote solar financing options, like solar leases and power purchase agreements (PPAs), that don’t require you to put in any money to get the solar panels installed.
Installing solar panels for no upfront cost may feel free, but you will still have to make monthly payments for the solar energy system on your roof. Trying to navigate these sales pitches can get overwhelming – but we’re here to guide you through these scammy advertisements so you don’t find yourself in a bad deal.
Key takeaways
The term ‘free solar panels’ is often used as a marketing tactic by solar installers to promote solar financing options.
You don’t have to pay any money upfront for third-party owned solar systems, so it feels free, but you still have to make monthly payments.
There are no government programs currently available that provide homeowners with solar panels completely for free, but some income-based programs can reduce solar costs significantly.
Buying solar panels with cash or a solar loan is a better investment than installing free solar panels, as these options provide better long-term electricity bill savings.
You should consider a solar lease or PPA if you do not have cash for an upfront purchase, do not qualify for a solar loan, or do not qualify for the federal tax credit.
Are solar panels actually free?
No, free solar panels aren’t actually free.
Most of the time, companies that advertise ‘free solar panels’ are referring to one of two solar financing options:
With solar leases and PPAs, you enter into a long-term contract with a solar company. The company will install solar panels on your roof at no upfront cost to you. This is why companies will often advertise these financing options as “free”.
However, you are still paying for this clean energy investment. Instead of paying for the solar panels, you’re paying for the solar electricity they produce. Think of it as swapping an electricity bill for a solar bill that is slightly cheaper than what you were originally paying.
Under these third-party solar agreements, the solar company retains ownership of the solar panels, meaning they’re responsible for maintenance and repairs, but they also get to claim incentives like the 30% federal solar tax credit and any upfront rebates available in your area.
It's like that a free solar agreement will also include a price escalator clause that outlines how much the monthly payment will increase each year. You’ll want to ensure that the escalator is lower than how much your utility prices typically increase annually. Otherwise, you might end up paying more on your solar payments over time than you would have before going solar!
What is a solar lease?
A solar lease is a solar financing option in which the homeowner makes a monthly lease payment to the solar company in exchange for the solar energy their home is using. The solar panels reduce your electricity bill and the lease payment is designed to be lower than your energy bill before having solar.
The solar development company owns the solar panels, so the company is entitled to the rebates and solar incentives. Homeowners do get to take advantage of net metering, so the system still lowers or eliminates their electric bill, but there will still be a monthly solar lease payment.
Pros | Cons |
|---|---|
Zero upfront cost | Not eligible for federal tax credit or other incentive programs |
Reduced energy bills | Lower long-term solar savings than other options |
Homeowner isn’t responsible for any system maintenance | Could make it difficult to sell your home |
Fixed monthly payment | Price escalator |
What is a power purchase agreement (PPA)?
A power purchase agreement (PPA) is a solar financing option similar to a solar lease. Like a lease, a PPA is a long-term agreement with a solar company that allows you to install solar panels without paying money upfront.
However, unlike a solar lease, which has a fixed monthly payment, a PPA charges you based on the number of kilowatt-hours (kWh) the system generates, typically at a rate lower than your local utility’s rate. Homeowners who install rooftop solar panels through a PPA also do not own their systems, so they cannot take advantage of solar tax credits or other local incentives.
Pros | Cons |
|---|---|
No upfront cost | Not eligible for the federal tax credit or other incentive programs |
Energy bill savings and net metering benefits | Lower long-term solar savings than other options |
Homeowner isn’t responsible for system maintenance | Could make it difficult to sell your home |
Predictable energy costs | Price escalator |
How to get free solar panels from the government
Unfortunately, you can’t get free solar panels from the government.
But, a government-funded initiative called “Solar for All” allocated $7 billion in federal funding to new and existing low-income solar programs!
The funding was distributed among 60 awardees through the Greenhouse Gas Reduction Fund to increase access to solar energy and lower utility bills to over 900,000 households in low-income and disadvantaged communities.
Currently, there are no government programs that provide solar panels for free, but there are programs that provide solar photovoltaic installation or community solar options to participants, depending on their eligibility.
4 ways to avoid a free solar panel scam
It can be easy to be duped by ads or salespeople claiming limited no-cost solar offers. Here are a few expert tips to protect yourself from falling for a solar scam:
Be wary of any claims of free solar panels. Always ask for sources where you can find more information about “free solar programs”.
Ask about other options. Some solar companies like to push leases and PPAs because they can make a lot of money from tax credits and incentives. Ask them if there are other financing options they offer.
Research the company. You want to go solar with a company that has been in business for at least five years, has NABCEP-certified professionals on staff, and has consistent positive customer reviews. Bonus points if you find a company that uses its own installation crews.
Get at least three quotes. If you’re looking for solar, it’s a good idea to get multiple solar quotes to compare offers. Even if someone is knocking on your door with a special “free solar panel” offer, don’t rush so sign a contract. It’s always best to shop around!
Alternative ways to get no-cost solar
There are other solar programs that give you access to solar power without paying anything upfront.
Zero-down solar loan
A solar loan is another method of solar financing where homeowners can purchase solar panels for their home without any upfront costs. With a zero-down solar loan, you are the owner of the solar panels, and you pay off the system through monthly installments.
Although you have to pay interest and additional fees, solar loans save more money over the lifetime of your solar panels than free solar panel options because at the end of the loan term, you own the solar panels and they generate free solar electricity.
Another benefit of going solar with a loan is that you are the owner of the solar panels, not the company, meaning you get the direct benefit of tax credits, local rebates, and performance-based incentives like Solar Renewable Energy Credits (SRECs).
You can also get a personal loan or a home equity line of credit (HELOC) to go solar if that works better for your finances and budget.
Community solar
Community solar programs are an excellent way to access the benefits of solar and renewable energy without needing a home solar installation.
Community solar allows multiple parties to share in both the environmental and financial benefits of solar energy through voluntary programs that operate on a subscriber-based model. Customers can subscribe and receive a portion of the power generated by a solar farm in exchange for a monthly subscription fee.
With no upfront investment and no solar panel system installation required for community solar, it’s proven to be a great option for renters looking to go solar, as well as multifamily and low-income homes.
Are free solar panels a scam?
Free solar panels aren’t necessarily a scam as much as they’re a sneaky marketing tactic. Through a solar lease or PPA, you can get solar installed for free – solar companies tend to leave out the crucial details outlining how you have to make mandatory monthly payments.
Your monthly solar payments depend on whether you financed through a solar lease or PPA, and the terms of your contract with the solar company. The solar payment is typically designed to be lower than your utility bill before the panels were installed on your roof, so you still see savings on electricity.
Free solar panels FAQs
How much does a solar installation cost?
The average cost of solar panels in 2025 is about $21,816 before the federal tax credit is applied. This equates to about $3.03 per watt of solar installed.
Can I get free solar panels from the government?
No, no federal government programs provide solar panel installations completely for free. Right now, the greatest incentive to go solar in the United States is the federal solar tax credit, which is equal to 30% of the total installation cost of the solar project.
Are there incentives available for installing solar panels?
Yes! Aside from the 30% federal tax credit, different states or utility companies offer local incentives and rebates for installing solar – find your state below for a full guide:
State solar incentive resources | ||||
|---|---|---|---|---|
Can’t find your state? Contact us.
How long does it take solar panels to pay for themselves?
Through monthly electricity bill savings, your solar panels can eventually pay for themselves. This timeframe is known as the payback period, and can take about 10 to 12 years. Considering solar panels last for over 25 years, you can expect at least a decade of free electricity.
Jamie is a Content Writer and researcher at SolarReviews. A recent graduate of La Salle University in Philadelphia, Jamie earned her B.S. in communications with a concentration in journalism, mass media, and public relations. Jamie has previously worked at a marketing company where she had the opportunity to highlight and promote small business owners through long-form stories and interviews. With a deep-rooted passion for creativity, Jamie stri...
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