Key takeaways
- There’s no such thing as free solar panels. The FTC says “free” or “no cost” solar offers are scams, and Michigan’s EGLE isn’t aware of any program that installs solar at no cost.
- “$0 down” usually means a loan, a long-term agreement with a third-party owner, or a misrepresentation.
- The federal 25D credit for homeowners who buy ended for expenditures after December 31, 2025, so a 2026 pitch built on it is a red flag.
- Before signing, get the total cost, the escalator, the term, the ownership and what happens if you sell the house in writing.
- Michigan law lets you cancel a home solicitation sale until midnight of the third business day after signing, in writing.
Frequently asked questions
Are free solar panels in Michigan real?
No. The FTC says “free” or “no cost” solar panel offers are scams, and Michigan’s environmental agency, EGLE, has said it isn’t aware of any state or federal program that provides solar installation at no cost. If a salesperson names a government program, look it up yourself.
What does “$0 down solar” actually mean?
It means you pay over time instead of up front, usually through a loan or a long-term agreement with a company that owns the panels on your roof. Either can be a reasonable choice. Describing one as “free,” a “program” or a “government rebate” is the problem.
Can I still get the 30 percent solar tax credit in Michigan?
Not for a system you buy. The IRS says the residential clean energy credit under Section 25D isn’t allowed for expenditures made after December 31, 2025, and an expenditure counts as made when installation is complete.
Can I cancel a solar contract I signed at home in Michigan?
Yes, within a short window. Under the Michigan Home Solicitation Sales Act, a buyer can cancel a home solicitation sale until midnight of the third business day after signing, in writing.
What should I check before signing a solar agreement?
The total cost over the term, any annual escalator, the length of the term and the cost to get out early, who owns the system, and what happens if you sell the house. Lenders commonly file UCC liens on solar equipment, which can complicate a sale or refinance.
“Free solar panels” is a common solar search in Michigan, and one of the most misleading. Nobody installs a solar system on your roof at no cost. What the phrase usually describes is a way of paying for solar that requires no money up front, with the cost showing up somewhere else: a loan, a long-term agreement or a monthly payment.
Some of those arrangements are legitimate. Some are not. Here’s how to tell the difference.
What regulators say about “free solar”
The Federal Trade Commission is blunt about it: in its consumer alert on solar scams, the FTC says “free” or “no cost” solar panel offers are scams.
Michigan’s environmental agency, EGLE, has said it is not aware of any state or federal programs that provide solar installation at no cost. If a salesperson tells you a government program is paying for your panels, ask for the program’s name and look it up yourself.
Michigan has also seen what aggressive solar sales can cost homeowners. In July 2026, Attorney General Dana Nessel filed a lawsuit against a solar company that went bankrupt in 2024 and the lenders that financed its sales. The complaint alleges that roughly 1,700 Michigan consumers were sold systems through in-home pitches promising lower bills and tax credits, with about $81 million financed, including more than $22 million in hidden financing costs averaging more than 27 percent of the amount financed.
The tax credit pitch that no longer works
Many “free solar” pitches lean on the federal tax credit. For homeowners who buy a system, that credit is gone. The IRS says the residential clean energy credit under Section 25D is not allowed for expenditures made after December 31, 2025, and an expenditure counts as made when installation is complete.
If someone tells you in 2026 that a 30 percent tax credit will pay off your loan, that’s a red flag on its own. We cover what still saves Michigan homeowners money in our guide to Michigan solar incentives in 2026.
What “$0 down” usually means
When an offer says no money up front, it’s one of three things:
- A loan. You own the system and make monthly payments. The question is the true cost of the financing, including any fees built into the system price.
- A long-term agreement with a third-party owner. A company owns the panels on your roof and you pay for the system or its power monthly. The Consumer Financial Protection Bureau says solar leases typically run 15 to 20 years, often with annual price escalators.
- A misrepresentation. The salesperson describes a loan or agreement as “free,” a “program” or a “government rebate.”
The first two can be reasonable choices. The third is the problem.
Read the agreement for these five things
Whatever the structure, the CFPB’s research on solar financing points to the same pressure points:
- The total cost. Not the monthly payment. The full amount you’ll pay over the term, including financing costs.
- The escalator. Does the monthly amount go up every year, and by how much?
- The term. How many years are you committed, and what does it cost to get out early?
- Who owns the system. If you don’t own it, who is responsible for the warranty, and what happens at the end of the term?
- What happens if you sell the house. Lenders commonly file UCC liens on solar equipment, which can complicate a sale or refinance, and a buyer can take over a loan or agreement only if the lender or provider allows it.
Your three-day right to cancel
If you sign at home, Michigan law gives you time to reconsider. Under the Michigan Home Solicitation Sales Act, a buyer can cancel a home solicitation sale until midnight of the third business day after signing, in writing. The statute spells out the details. If you feel rushed, that’s your safety valve.
Red flags to walk away from
- “Free,” “no cost” or “government-paid” panels
- A promise that a tax credit will cover the cost in 2026
- Pressure to sign the same day
- A monthly number with no total cost, term or escalator in writing
- A salesperson who can’t name the company that will actually install the system
- Reluctance to leave the contract with you to review
When no money down is a fair deal
Paying for solar over time isn’t a scam. Plenty of Michigan homeowners finance a system, and some third-party agreements, including the Energy Service Agreement Stellar offers, pass federal value through as a lower price. The difference is transparency: a fair offer puts the total cost, the term, the escalator and the ownership in writing, and gives you time to read it.
Get a straight answer
If you’ve been handed a “free solar” offer and want a second opinion, or you want to see what solar actually costs for your home, Stellar Solar will walk through the numbers with no pressure and no same-day signature.
Ready to take control of your energy costs and protect your home from Michigan’s frequent outages? Request a free, no-obligation quote from Stellar Solar Michigan, serving Michigan homeowners with solar and battery storage since 1998 and A+ rated with the BBB, or call 858-395-6905.