Free Solar Panels in Alberta: The Truth About These Offers
- Tom Sherwood
- Jan 3
- 4 min read
Quick Answer
Here's what you need to know about "free" solar panel offers:
There's no such thing as truly free solar. Every "free" offer has a catch. Someone is paying for those panels, and there's always a trade-off.
Most "free" offers are solar leases or PPAs. You don't own the system. A company installs panels on your roof, owns them, and sells you the electricity.
You lose most of the financial benefits. The company keeps incentives, tax benefits, and builds equity. You just get a slightly lower electricity rate.
It can complicate selling your home. Lease agreements transfer to buyers, which some find unappealing.
Better options exist. With 0% financing, you can own your system with similar monthly payments but keep all the long-term benefits.
What "Free Solar" Actually Means
When you see ads for "free solar panels" or "no-cost solar," here's what's typically being offered:
Solar Leases
With a solar lease, a company installs panels on your roof at no upfront cost. In exchange:
They own the system. It's their equipment on your roof.
You pay a fixed monthly lease payment for 20-25 years.
They keep all incentives and rebates.
At the end, you may have to pay to have the system removed or buy it at residual value.
Power Purchase Agreements (PPAs)
Similar to leases, but instead of a fixed payment, you agree to buy the electricity the panels produce:
They own the system.
You pay per kilowatt-hour, typically slightly below utility rates.
Rates often escalate 1-3% annually.
They keep all incentives and rebates.
Why Companies Offer "Free" Solar
These companies aren't charities. They make money by capturing the incentives, tax benefits, and long-term revenue that would otherwise go to you. The "free" installation is their investment. Your roof and your electricity payments are their return.
The Real Cost of "Free" Solar
Here's what you give up with lease or PPA arrangements:
Lost Incentives
Municipal rebates, CEIP financing benefits, and any available incentives go to the system owner. With a lease or PPA, that's not you.
No Equity Building
When you own solar, you're building equity in an asset that increases your home value. With a lease, you're essentially renting. Your payments build equity for the leasing company, not you.
Limited Savings
Lease and PPA savings are typically 10-30% below utility rates. Ownership savings, especially after payback, can be 80-100%. Over 25 years, the difference is substantial.
Escalating Payments
Many PPAs include annual rate escalators of 1-3%. What starts as savings can erode over time, especially if utility rates don't rise as fast as projected.
Complications When Selling
Solar leases and PPAs are contracts that typically transfer to new homeowners. Some buyers find this unappealing or confusing, which can complicate sales. You may need to buy out the lease to sell your home cleanly.
End-of-Term Uncertainty
At the end of 20-25 years, you typically face three options: renew the lease, buy the system at "fair market value," or have it removed (sometimes at your expense). None are as straightforward as simply owning your system outright.
Better Alternatives to "Free" Solar
If you want solar with minimal upfront cost, there are better options than leases or PPAs:
0% Financing
With interest-free financing from qualified installers like Firefly Solar:
You own the system from day one.
Monthly payments are often similar to lease payments.
You keep all incentives and rebates.
You build equity in your home.
After payback, electricity is essentially free for 15-20+ more years.
CEIP Financing
Alberta's Clean Energy Improvement Program offers property-tax financing:
Finance through your property tax bill.
Competitive interest rates (1.2%-3.6%).
You own the system.
Available in 20+ Alberta municipalities.
Financing transfers with property if you sell.
The Math: Lease vs. Own
Let's compare a hypothetical example over 25 years:
Solar Lease:
Save 20% on electricity for 25 years
No equity built
No ownership at end
Ownership with Financing:
Similar payments during financing period (5-10 years)
Free electricity for 15-20+ years after payoff
Increased home value
Full ownership of producing asset
The long-term financial advantage of ownership is significant. The question is whether you can manage the initial investment, and with today's financing options, most homeowners can.
When Leases Might Make Sense
To be fair, there are limited situations where a lease could make sense:
You cannot qualify for any financing.
You plan to move within 2-3 years and want some savings without long-term commitment.
You prioritize simplicity over maximum financial return.
However, for most Alberta homeowners planning to stay in their homes, ownership delivers far better value.
The Honest Alternative
At Firefly Solar, we don't offer "free" solar because we believe ownership serves homeowners better. Instead, we offer:
0% financing options that make ownership accessible.
Transparent proposals showing true costs and savings.
Help navigating CEIP and other programs.
Systems you own from day one.
FAQ: Free Solar Panels
Are free solar panels a scam?
Not exactly a scam, but often misleading. The panels aren't free. You're entering a long-term contract where someone else owns equipment on your roof and you pay them for electricity. It's a legitimate business model, but "free" is a stretch.
Why do companies offer free solar?
Because it's profitable for them. They capture incentives, tax benefits, and long-term revenue. Your roof is their investment property.
Can I get out of a solar lease?
Usually only by buying out the contract, which can be expensive. Read any lease agreement carefully before signing and understand the buyout terms.
Is owned solar really better than leased?
For most homeowners, yes. Ownership provides better long-term economics, full control, and simpler home sales. With 0% financing options, the upfront barrier is lower than ever.
