Unveiling the hidden costs behind free solar panels

How to get solar panels free of upfront costs

Although free solar panels are rarely a reality, you can use several common adoption methods to install a PV system on your property without upfront costs. In doing so, you can find the solar financing option that works best to optimize your electricity bill savings and future cash flows.

No-money-down solar financing

Today, many installers and third-party providers offer solar financing loans with low or zero upfront cost options. By purchasing your energy system with a loan, you may qualify for federal and state solar incentives to reduce your total investment costs. When compared to power purchase agreements (PPA) or lease options, purchased solar panels can usually create the most long-term savings and increase your property value.

Understanding power purchase agreements with solar PPAs

With free solar panel installation included, a PPA is a third-party ownership (TPO) agreement that can help you save money on home electricity expenses. In a solar PPA, contract terms are typically 20 or 25 years, the installer maintains responsibility for system upkeep (covering some or all related costs), and you purchase the electricity your panels generate at a fixed rate designed to lower ongoing utility bills.

Renting your energy system with a solar lease

Free of upfront costs, a solar lease allows you to "rent" your system, much like a vehicle or vacation home. Like a PPA, solar leases usually last 20 or 25 years, and the installer is responsible for ongoing maintenance, though all ongoing costs may not be covered. The key difference between a lease and a PPA is that solar leases usually involve fixed monthly fees, rather than payments for the number of kilowatt-hours (kWh) produced.