How To Get Free Solar Panels
As we have already said on this site a few times. “Free” is relative and some people may not agree with our assessment of what a valid statement of Free actually is. However there are ways to get solar panels on your roof and start saving money with no cost to you. With that in mind here are our…..
5 ways, how to get free solar panels.
No Upfront Cost, and No Increase In Your Monthly Bills and ideally you will start saving money immediately, increase the value of your home and feel better about where you energy comes from.
How To Get Free Solar Panels With A Power Purchase Agreement (PPA)
The idea of free solar panels typically refers to what is called a Power Purchase Agreement between you and a solar power company.
The company is agreeing to install and set up a solar panel array on your home, then monitor, maintain, and even upgrade if it becomes prudent to do so at no cost to you for the life of the agreement.
In return, you are agreeing to purchase power from the company that set them up. The result is a lower monthly bill and a guarantee of what your bill will be in the future.
The idea of companies offering and maintaining home solar panels for free has been evolving for a few years now and many companies are offering programs like this. So this program has become pretty standardized.
How long is the contract?
Generally, you are agreeing to purchase power from this company for 20 to 25 years.
What is the rate?
The rate they are going to charge you will be less than what you are currently paying and is set to have a progressive increase at a much lower rate than what conventional electric companies are projected to have in the years ahead.
How To Get Free Solar Panels With A Solar Power Lease
The Solar Power Lease is similar to the Power Purchase Agreement except that you are basically renting the solar panels. The company will install, maintain and monitor your panels again for free for the life of the contract but instead of purchasing power from the solar company, you get to use all the power they produce directly to offset your electrical needs and lower your current electric bill.
How long is the contract?
Generally, you are agreeing to purchase power from this company for 20 to 25 years.
What is the rate?
The lease rate is lower than what you currently paying for your electric bill right now. But then you have a fixed monthly bill and the electricity they produce will offset your normal electric bill. Both payments together should be less than what you were originally paying for your electricity.
How To Get Free Solar Panels With A Solar Loan
The Solar Loan is where you simply borrow money to purchase your solar system outright.
I know it doesn’t sound very “Free”. However solar companies offering a specialized loan for solar panels are able to be a little more creative than your traditional loans.
Federal, State, and Local governments are trying to push solar power forward.
The biggest incentive has been the Federal Solar Tax Credit also known as the Investment Tax Credit (ITC). This incentive was extended in 2020 and is currently at 26%.
This is a direct reduction of what you owe on your taxes to help fund your purchase of solar power.
When getting a Solar Loan, first their aim will be to have no down payment.
So no upfront cost to you, and they will tailor the loan payments to be less than what you normally pay for your electric bill.
Then with the government’s 26% tax credit, they will actually set you up with 2 loans.
If they don’t, inquire about doing it. One loan will be for your regular long term payments and the other will be tailored to match your tax credit.
So when you file your taxes you can simply pay the one loan off instead of paying that amount in taxes.
Then you will just have the remainder in the long term loan to pay off.
This should be a payment no more than what you are currently paying for you electricity right now.
How long is the loan likely to be?
This part is hard to pin down as many factors come into play. The rate of the loan, how much do you actually need, what is your current electrical rate as well as a few more.
However, generally speaking, the higher your current rate for electricity the quicker the payback will be. In some states, you can see a pack back in as little as 4 years. Others could be as much as 15 years or more.
What is the rate?
Ideally a large portion of the purchase will be paid for by the federal tax credit. Then the remaining monthly payment you will be making will be tailored to be just below what you are paying now for electricity. This can be adjusted for a longer term for a lower payment or higher if you would like to pay it off quicker.
How To Get Free Solar Panels With – SREC’S (Solar Renewable Energy Certificates)
SCREC’S are Solar Renewable Energy Certificates.
These certificates are available in select states where the state has enacted a renewable portfolio standard. These are mandates that say a certain amount of energy must be produced from renewable energy sources, in the case of SREC’s this pertains specifically to power created from solar sources.
Utilities can purchase these certificates to meet their renewable energy mandates. You in turn are rewarded for generating electricity with solar power. This certificate is above and beyond any existing incentives you may be receiving, and beyond and solar energy you may be selling back to your utility company.
SREC’S are traded on an open market exchange so the value of an SREC is not set and does fluctuate based on the need and the mandates that may be in place.
However, over time this extra credit can add up and in certain areas can be worth thousands of dollars annually, quite possibly offsetting the cost of your solar panel system entirely.
How To Get Free Solar Panels
The Creative Way
This option could be an entire website unto itself but simply put there are creative ways you can use solar energy to help heat your home and produce electricity.
Here are a few ideas that people don’t think about.
Broken, used, or old solar panels still work. they just don’t work as well. Now if you are someone looking for top efficiency then this is probably not for you. But if you want to start using solar power on the cheap then this could be a great option.
Many solar panels have been around for years and are starting to be replaced by newer and more efficient versions.
So you can hunt around for some or even advertise on craigslist that you would be willing to come and haul them away or check with your local dump, a lot of places are specifically keeping technology-related trash separate for people to repurpose.
Other options are are to make your own solar shades for putting in your windows for heat. Just a black panel in the window can make a big difference in the cold months.
There are DIY solar cookers, solar water heaters and there are even ways to use heat to cause refrigeration.
When I first started looking into free solar panels the current solar deals weren’t even around and the first site I came across was freesolarpanels.com.
What if I sell my home?
If you decide to sell your home, and you have solar panels on your roof you are most likely to see an increase in interest in your home and generally your home will sell for more.
If you own your own solar panels then great.
This will increase the sale price of your home, is easiest to explain and the buyers should have no problem assuming the benefits.
In the case of SCREC’s apparently, certificates in some areas are separate items and can remain with the seller. Although in most cases the buyer would want these transferred as well.
In the case of a Power Purchase Agreement or a Solar Lease, this could be an added complication as some buyers might be cautious about assuming your solar agreement.
But as people are becoming more used to the idea of solar power this is less of an issue.
The agreement should be easily transferred over but this is something you want to be clear on when you enter into your solar agreement.
Some companies are fine with transfering the agreement and some will require that the balance be paid off, so make sure you are clear on this point.
How does this affect the value of my home?
With the way the world is going solar is being seen more and more as an attractive addition to your home.
A home with solar panels should sell quicker and sell for more money.
A fully owned solar system generally increases the value of the home by the cost of the solar panel system.