How to Get Free Solar Panels

Solar energy has become increasingly popular among homeowners looking to reduce their energy bills and carbon footprint. In recent years, many advertisements have promised “free solar panels,” making solar power sound too good to be true. While the idea of free solar panels is appealing, the reality is more complex. This guide explains why solar panels aren’t truly free, how financing options can make them affordable, and how federal and state incentives can save homeowners thousands.

Why Solar Panels Aren’t Really Free

When a company advertises “free solar panels,” it typically means that you won’t pay anything upfront for the installation. However, these offers usually involve a solar lease or power purchase agreement (PPA). Under these arrangements, a solar provider installs and maintains the system, and you pay for the electricity it produces at a fixed rate or monthly lease payment.

Here’s the catch:

• Monthly Payments Are Still Required – Even if the panels themselves are “free,” you’ll pay for the electricity generated by the system. Over time, these payments can add up, sometimes exceeding what you would have paid for electricity from your utility.
• Long-Term Contracts – Solar leases and PPAs often last 15–25 years, meaning you are committing to long-term payments. Early termination can result in fees or penalties.
• Limited Incentives – If the solar company owns the panels, you won’t be able to claim the federal solar tax credit or other homeowner incentives. Instead, the company may claim these benefits, sometimes reducing the value you receive.

In short, “free solar panels” aren’t truly free, they shift the cost from an upfront payment to monthly obligations over time. Homeowners need to carefully evaluate these agreements to ensure they are getting a good deal.

Financing Options That Make Solar Affordable

For homeowners who want to own their solar panels and maximize savings, financing options can make solar more affordable without paying the full cost upfront. Here are the most common options:

• Solar Loans – Solar loans allow you to purchase your solar system with little or no money down. You repay the loan over time, often with interest rates similar to home improvement loans. With solar loans, you own the system, which means you can claim tax credits and take advantage of incentives.
• Home Equity Loans or Lines of Credit – Some homeowners use a home equity loan or line of credit to pay for solar panels. These options often come with lower interest rates since they are secured by your home.
• PACE Financing – Property Assessed Clean Energy (PACE) financing is available in some states and lets homeowners pay for solar panels through property tax assessments.

These financing options allow homeowners to spread out the cost of solar panels while still benefiting from ownership incentives. Owning your system typically results in greater long-term savings compared to leasing or PPAs, even if monthly payments are involved.

Understanding Federal Solar Tax Credits

The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows homeowners to deduct a portion of the cost of installing solar panels from their federal taxes. In 2025, the ITC is still available at 30% of the total system cost. This includes the cost of panels, inverters, installation labor, and related equipment like solar batteries.

For example, if your solar installation costs $25,000, you could receive a $7,500 tax credit when you file your taxes. This can significantly reduce the total cost of going solar and makes owning your system even more attractive.

It’s important to note:

The tax credit is non-refundable, meaning it can reduce your federal tax liability but won’t provide a refund beyond the taxes you owe.

Unused portions of the credit can usually carry over to future tax years, so you don’t lose the benefit if your tax liability is lower in the first year.

State and Local Solar Incentives

In addition to the federal tax credit, many states, cities, and utilities offer additional incentives to reduce the cost of solar. These can include:

• State Tax Credits – Some states offer additional tax credits for solar installations, sometimes up to several thousand dollars.
• Rebates – Local utility companies may provide cash rebates or incentives for installing solar panels.
• Net Metering – This program allows homeowners to send excess electricity generated by their solar system back to the grid in exchange for credit on their electricity bill.

When combined with financing options and federal incentives, these programs can make solar energy more affordable than ever, often allowing homeowners to achieve net-zero or even negative electricity bills over time.

The Benefits of Owning Solar Panels

Owning your solar panels rather than leasing offers several advantages:

• Maximized Tax Benefits – Homeowners who own their system can claim the federal ITC and any available state incentives.
• Higher Long-Term Savings – While leases can reduce upfront costs, owning your panels typically results in larger savings over the life of the system.
• Increased Home Value – Solar panels can increase your home’s resale value. Studies show that homes with solar sell faster and at higher prices.
• Energy Independence – Ownership allows you to generate your own electricity, reducing reliance on the grid and protecting against rising utility rates.

How to Decide Between “Free” Panels and Ownership

Deciding whether to lease or own solar panels depends on your financial situation, goals, and long-term plans for your home. Here’s a simple way to think about it:

• Leasing or PPA – Good if you want zero upfront costs and aren’t concerned about long-term savings or claiming tax incentives.
• Ownership with Financing – Best if you want to maximize savings, take advantage of tax credits, and increase your home’s value.

A reputable solar installer can help you compare these options and determine which path is most cost-effective for your household.

Final Thoughts

“Free” solar panels sound tempting, but they are rarely free in the long run. Monthly payments, long-term contracts, and limited incentives can reduce the benefits. For homeowners who want the greatest savings and control, owning a solar system through financing is usually the smarter choice.

With the federal solar tax credit still at 30% in 2025, combined with state incentives and net metering programs, there has never been a better time to go solar. By choosing the right financing option, homeowners can make solar energy more affordable, reduce energy bills, and increase the value of their home.