Sunlight is free. Solar panels cost money.
So when you see advertisements touting “free solar panels,” it certainly sounds too good to be true.
Any homeowner weighing the decision to invest in a major project like rooftop solar would be tempted by such an offer. And who can blame them? The average cost of a solar installation hovers around $24,000 in the US.
But like most things in life, when it sounds too good to be true, it usually is. Though there are certainly ways to reduce or even eliminate the upfront costs of rooftop solar, it’ll never be completely free.
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“Less credible companies still say that,” according to Krystal Persaud, founder of Grouphug Solar and co-founder of Wildgrid. But they’re often just trying to lure you in or sell your contact information to solar installers.
So how do you sift through the fluff and get to the grain of truth behind claims of “free” solar panels? Here’s everything you need to know about reading the fine print — and getting a great deal on solar panels.
What do companies mean by free solar panels?
“Typically, the people who are saying ‘free solar’ are on the end of lead generation. They’re going to say anything to get you to put in your information, because that’s how they make money,” Persaud said.
“It definitely depends on the situation. Your best chance to save money is if you live in a state with net metering,” Persaud said, because that allows you to get paid for any excess energy your panels send to the grid.
Without net metering, your solar panels can still save you money on electricity bills in the long run, but it will take longer. Here’s how to calculate your solar payback period.
It’s possible, but there are requirements. Certain states are more solar-friendly than others, offering more incentives to help with solar costs. Some of these incentives include free solar panel programs. To be eligible for free solar panels, you’ll likely have to meet an income requirement. Low-income households are more likely to be eligible for free solar panels.
However, most of these “free solar panel” incentives come with a lease or PPA agreement.
Solar leases are a popular option for people who don’t want to own solar panels but still want to use solar energy to power their home. Entering a solar lease means you pay for the use of company-owned solar equipment on your home. This is usually a fixed monthly rate.
