You've seen these ads: "Get free solar panels today!" or "Go solar for $0!" But we all know nothing is really free, especially solar panels that cost thousands of dollars. Companies simply use this word to get your attention. What they really mean and whether these deals are right for your home – find out in our article.
Key takeaways
When solar companies say "free," they don't mean they're giving you expensive equipment for nothing. Free only means free installation. You won't pay $15,000 to $30,000 upfront like you would if you bought the panels yourself. But you will definitely pay money every month.
There are two main types of free solar deals: leases and PPAs. Both work like this: the company puts panels on your property for free, but they own the panels, not you. With a solar lease, you pay the company a set amount every month – usually $50 to $200. With a power purchase agreement, you buy the electricity the panels make at a lower rate than your electric company charges.
Read also
Both deals last 20 to 25 years. That's a long time – longer than most people keep their cars or even live in the same house. The company takes care of fixing anything that breaks, but you're stuck with monthly payments for decades.
Solar lease payments usually start around $50 to $200 per month. Many contracts also raise your payment by 2% to 4% every year. Over 20 years, you might pay $25,000 to $40,000 total. That's often more than buying your own solar panel system would cost.
With PPAs, you start paying around 8 to 15 cents for each unit of electricity the panels produce. This is usually less than what your electric company charges. But this rate also goes up each year. If your local electric rates don't go up as much as expected, you could end up paying more than you would have without solar.
The biggest hidden cost is missing out on owning something valuable. When you lease or use a PPA, you don't own anything. You can't get tax breaks, and you don't add value to your home. All of that goes to the company that owns the panels.
These programs do have real benefits for some people. Your electric bill will drop right away, sometimes by half or more. The company fixes anything that breaks, so you don't have to worry about repairs.
These deals make sense if you don't have good credit, can't save up cash, or don't pay enough taxes to benefit from solar tax breaks. If you're planning to move in the next 10 to 15 years, not owning the system can actually be easier.
"Free" solar works best if your main goal is helping the environment and getting steady energy costs. It's not the best choice if you want to save the most money possible.
If you like the idea of solar but leasing doesn't feel right, you have other options. These alternatives often save you more money in the long run while still making solar affordable.
Many banks and solar companies now offer loans that let you buy solar panels with no money down. These loans usually last 12 to 20 years with interest rates between 3% and 8%.
Your monthly loan payment might be about the same as a lease payment. But here's the big difference: you own the system from day one. You get all the tax breaks and rebates. The federal government gives you back 30% of what you spend on solar – that's thousands of dollars.
After you pay off the loan, you get free electricity for decades. Owned solar systems also increase your home's value by about 4% according to studies. Leased systems don't add value and can make it harder to sell your house.
Read also
If your roof won't work for solar, you rent your home, or you just want to try solar without a long commitment, community solar might be perfect. With these programs, you buy electricity from a big solar farm built somewhere else in your area.
You pay a monthly fee based on how much solar electricity you want. Then you get credits on your regular electric bill. Most programs save you 5% to 15% on electricity without any panels on your roof.
Community solar is great for renters, people with shady roofs, or anyone not ready for a 20+ year commitment. You won't save as much as owning rooftop solar, but it's simple and flexible.
If you have $15,000 to $30,000 in savings and want the biggest long-term return, buying solar panels with cash is the best deal. You own everything from day one, get all tax credits and rebates, and start saving money on electricity immediately.
Cash buyers typically see their investment pay for itself in 6 to 10 years through electricity savings. After that, you get free power for 15+ more years. You also get the full 30% federal tax credit, which can save you $5,000 to $10,000 or more.
Cash purchases make the most sense if you have the money available, plan to stay in your home for at least 10 years, and want maximum returns on your investment. You'll also increase your home value without any monthly payments or long-term contracts to worry about.
Free solar isn't free, but it can still be smart for some people. If you want simple, don't have cash upfront, or can't use tax breaks, leases and PPAs give you access to solar power. But if you want to save the most money and can get a loan, owning your own system usually works out better. Get quotes for both options and do the math for your specific situation before deciding.
Start saving money with solar panels!
Check what solar panels we have in stock or get a quote for a system from our engineer.
Shop solar panels
Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
More articles from this authorStay tuned
Learn about the latest arrivals and discounts first!
Solar power purchase agreements: Sun without spending
Solar leasing: Rent the sun
Is it better to buy or lease solar panels? Let’s compare
Community solar: Shared sunshine
Solar panel costs in 2025: Prices & savings