"Free Solar" and "Government Solar Programs"
There's a new government program in your area that puts solar on your roof for free. You just pay a small monthly amount instead of your electric bill.
What's actually true
No federal or state program installs free panels door to door. "Free" or "no-cost" almost always means a $0-down lease, PPA or loan with 20 to 25 years of payments.
There is no government program that puts free solar panels on your roof. When a salesperson says “free,” “no-cost” or “government program,” they are almost always selling a private lease, power purchase agreement (PPA) or loan that you will pay on for 20 to 25 years. Some of those deals are fine. Calling them free is not.
Why salespeople use this line
“Government program” borrows trust the company hasn’t earned. It also makes the deal sound limited and urgent, as if you need to sign before funding runs out. Hawaii’s state energy office (DBEDT) issued a public warning about this exact pitch in March 2026.
Real public money for solar does exist, but it is narrow and it does not arrive by knocking on your door:
- The federal homeowner tax credit (Section 25D) ended for systems installed after December 31, 2025. See our federal tax credit guide.
- The EPA’s $7 billion Solar for All program was terminated in August 2025. Two federal courts ruled the termination unlawful in September 2026, but as of October 2026 that did not automatically release the money. Where it runs, it runs through state agencies and nonprofits, not door-to-door reps.
- PACE loans are sometimes sold as a “government program” because they are repaid through your property tax bill. They are loans, often at high rates. See PACE financing.
A worked example
A rep offers “free solar” with a payment of $129 a month and a 2.99% yearly increase, for 25 years. Here is what “free” adds up to:
| Year | Monthly payment |
|---|---|
| 1 | $129 |
| 10 | about $168 |
| 25 | about $262 |
| Total over 25 years | about $56,400 |
That might still beat your utility bill, or it might not. But it isn’t free, and you can’t judge it until you see those numbers.
How it shows up in the paperwork
The contract will not say “government program.” Look for:
- A title like “Residential Solar Lease,” “Power Purchase Agreement” or “Retail Installment Contract”
- A company name as the “Provider,” “Owner” or “Lender”
- A payment schedule or price per kWh, with an “escalator” percentage
- Language about a UCC-1 fixture filing on your property
If the document says the provider owns the system, you are renting it. See leases called purchases.
Questions to ask
- “What is the legal name of the company that will own these panels?”
- “Which government agency runs this program, and where is it listed on that agency’s website?”
- “What is the total of every payment I will make over the whole contract?”
- “Does my payment go up each year? By how much?”
- “Is there a lien or UCC-1 filing on my home?”
A real program will have a public website you can find yourself. A sales pitch will not.
What to do next
Run your own numbers with the solar calculator and the lease vs. buy tool. Our guide to the free solar government program pitch covers the legitimate low-income options in more detail, and solar scams covers related tricks.
Watch out: If you already signed in your home, the FTC Cooling-Off Rule usually gives you 3 business days to cancel. Some states give more. See how to cancel a solar contract.
Where to report it
- Federal Trade Commission: reportfraud.ftc.gov
- Your state attorney general’s consumer protection office
- The CFPB at consumerfinance.gov/complaint if a loan was involved
- Your state contractor licensing board if the company is a licensed contractor
Related red flags
A Lease or PPA Sold as a "Purchase" or "Program"
In a lease or power purchase agreement (PPA), the company owns the panels. You rent the equipment or buy its power for 20 to 25 years. That affects who gets tax credits, what happens when you sell your house, and who fixes the system.
Salespeople Posing as Your Utility
Utilities don't send people door to door to sell solar or review your bill. A rep who implies a utility connection is using borrowed trust to start a sales pitch, and may be collecting your account information.
PACE Loans Sold as a "Government Program"
PACE is private financing repaid as an assessment on your property tax bill. It is a loan in practice, it creates a lien on your home that can make refinancing or selling harder, and missed payments put the home at risk the same way unpaid property taxes do.
Quotes That Subtract the 30% Federal Tax Credit in 2026
The Section 25D homeowner credit does not apply to systems whose installation was completed after December 31, 2025. If you buy with cash or a loan in 2026, your federal credit is $0.
Lease and PPA Escalator Clauses
Escalators of 2.9% to 3.9% a year nearly double or more than double your payment over 25 years. If utility rates rise more slowly than your escalator, your solar price can end up higher than buying from the utility.