Are Those Free Solar Panel Ads Legit? What You Need to Know Before Signing Up

The Short Answer: No, Solar Panels Are Not Free

Despite what the ads say, solar panels are not free. Whether you lease, finance, or pay in full, you are either paying for the power they generate or paying for the system itself.

These ads are designed to get your attention. The word “free” creates curiosity and leads people to submit their information, thinking there is a special government program or utility deal available. But in reality, there is no current California or federal program that gives away solar panels to most homeowners.

Instead, what you’ll find is one of two things:

• A lease or power purchase agreement where you pay monthly for the electricity
• A financed solar system where you own the panels but make loan payments

Let’s break this down clearly.

Where the Term “Free Solar Panels” Comes From

1. Leases and Power Purchase Agreements (PPAs)

This is the most common path companies use when they advertise solar as “free.”

In this setup:

• You do not own the solar system
• A third-party company installs it and maintains it
• You pay for the power it produces, often through a fixed rate or escalating payments
• You may not need to pay anything up front

It feels similar to how you pay your current utility bill. You’re just replacing PG&E with the solar provider. However, you are still committing to a long-term contract, typically 20 to 25 years.

Leases and PPAs can also come with restrictions. They may impact your ability to sell your home, limit your eligibility for solar tax credits, and include annual price increases. While the payment might be lower than your current utility rate in year one, that number can rise over time.

2. Zero Down Financing

Another version of “free” is when companies advertise no upfront cost.

This usually refers to a solar loan, where:

• You make monthly payments to a lender
• You own the system and receive the 30 percent federal tax credit
• You pay over 20 to 30 years, similar to a home improvement loan

This is a popular option for California homeowners, but it’s not free. It’s just a financing structure that replaces your current utility bill with a monthly loan payment, which should be lower if sized properly.

Do Government Programs Still Offer Free Solar?

Most of the old programs that once offered heavy rebates or paid for systems outright have been used up or discontinued. However, there are still a few programs active today, with strict qualifications.

Let’s cover the most relevant ones.

1. Federal Solar Tax Credit (ITC)

The federal tax credit gives homeowners 30 percent back on the total cost of their solar system when they file taxes. This includes panels, inverters, batteries, and installation.

So if your system costs $30,000, you could receive a $9,000 credit on your taxes.

This is not a rebate and it does not reduce the upfront price. You need to either have the tax liability to use the credit or roll it forward. You also need to pay for the system, either in full or through a loan.

This is the most reliable solar incentive today, but it does not make solar free.

2. California SGIP Battery Program

The Self-Generation Incentive Program (SGIP) in California offers cash rebates for homeowners who install battery storage. The most generous rebates are reserved for low-income households in areas with high fire risk or frequent power outages.

Some families can qualify for full battery and solar system coverage under what’s called the Equity Resiliency program. To be eligible, you typically need to:

• Live in a Tier 2 or Tier 3 fire zone
• Be on a medical baseline utility rate
• Have experienced two or more power shutoffs
• Meet income-based qualifications, such as being on the CARE or FERA programs

This program can cover the entire cost of solar and battery systems for qualified homeowners. However, it comes with a long wait time, sometimes six to eight months for approvals. Funding is limited and often freezes when budgets are exhausted. As of June 2025, it is open again, but availability is limited.

While some people genuinely receive a free system through this program, it is rare and highly conditional.

Why Do Solar Ads Still Say “Free”?

Because it works.

Using the word “free” gets attention. When paired with phrases like “government program” or “limited-time offer,” it creates urgency and curiosity. Once a homeowner clicks, submits their info, or fills out a quiz, a salesperson follows up to explain the actual terms.

This tactic is mostly used by large lead generation companies or national solar brands. While the offer might include zero money down or a lower bill than PG&E, it is still a paid agreement. Either you are:

• Paying monthly for the energy through a lease or PPA
• Financing the system and paying a loan
• Or in rare cases, applying for a government incentive that takes months to process

The word “free” should be a red flag. It usually means the full explanation is coming later, after you’ve been contacted.

What Should You Do Instead?

If you want to go solar and avoid the gimmicks, follow these steps.

Talk to a Local, Licensed Solar Contractor

Local contractors are more familiar with your city’s permitting process, PG&E interconnection rules, and how to size systems properly under NEM 3.0. They are also more accountable, since they live and work in your community. When you work with a local team, you get better communication and service.

Ask Directly: Is This a Lease or Loan?

If someone tells you the system is free, immediately ask:

• Do I own the system?
• Am I signing a loan, a lease, or a PPA?
• What are the total payments over 25 years?

These questions will help you avoid confusion and get to the truth quickly.

Make Sure the System is Sized for Your Home

A system should be designed based on your actual energy usage or projected usage. This includes factoring in electric vehicles, pools, or planned renovations. If a company offers a generic system size without reviewing your usage, that’s a red flag.

Final Answer: Are Free Solar Panels a Real Thing?

Not really. Most of the time, “free solar panels” are part of a sales pitch.

Unless you qualify for a limited state program like SGIP, you are either leasing the panels, financing them, or paying for the power through a contract. There is no national or state program that simply gives away solar panels with no strings attached to the general public.

If you’re serious about going solar in Fresno, Clovis, or anywhere in California, your best move is to partner with a trusted local contractor. Look for someone who will give you straight answers, custom design your system, and offer support after installation.

Want a No-Nonsense Solar Proposal?

At Supreme Solar and Electric, we don’t play games with gimmicks or misleading offers. We offer:

• Clear proposals that show total cost and savings
• Real financing options with no pressure
• Honest advice from experienced local installers

If you’re ready to explore solar the right way, we’ll help you understand your options, qualify for the best incentives, and design a system that works for your home.

Schedule your free consultation now and get the clarity you deserve.