When shopping for a solar system, you may come across offers from companies promising free panels. While these discounts may seem attractive at first glance – especially since the upfront cost of installing a system can exceed $20,000 – these deals rarely deliver on their promises.
Free solar systems can often be a scam. The company offering them typically attempts to collect personal information like your name and address in order to sell it on to solar leasing companies.
Many have been scammed by these companies, and even if you are not one of the victims, it is essential to understand what they offer before signing anything. That is why the Better Business Bureau (BBB) encourages homeowners to report any suspicious offers so that they can help prevent similar scams in the future.
There are several ways to get solar panels for free, including taking out a home equity line of credit and applying for an Investment Tax Credit. Although these programs may not be accessible to everyone, they can be an excellent way to save money and reduce your carbon footprint at the same time.
Another way to obtain free solar panels is by paying the installer a fixed amount each month, rather than purchasing them outright. This arrangement, known as either a lease or Power Purchase Agreement (PPA), may not be free but they tend to be less costly than buying your system outright.
When choosing between a solar lease or PPA, take into account how much energy you consume and the size of your roof. A knowledgeable solar installer can determine which option is best suited for you and your family’s needs.
Most homeowners opt to finance a solar system outright through financing. This usually provides the greatest value over 25 years, but requires you to make an initial large investment.
If you can’t afford the full cost of a mortgage upfront, you might want to look into a home equity line of credit or personal loan. These types of loans offer greater flexibility than mortgages and oftentimes they’re tax-deductible.
Finally, some homeowners choose a third-party ownership model which involves a solar company installing and owning the system. This option tends to be the most affordable and suitable for those with poor credit histories.
Unfortunately, third-party models often don’t enable you to take advantage of government incentives and tax credits associated with solar installations. Furthermore, these models may restrict the output and lifespan of the system. A solar lease or Power Purchase Agreement (PPA) may offer lower monthly payments than buying outright, but these savings are usually offset by high interest rates.