Free solar panels can mean no payment on installation day, but that does not prove the whole system is free. The offer may involve a loan, lease, power purchase agreement, eligibility-based funding or costs excluded from the headline promise. Before accepting, find out who owns the equipment, what you will pay over the contract, which parts of the installation are included and how savings were estimated. For a New Zealand home, also check how the system will connect to your local network and what your electricity retailer pays for exported power. Compare the written offer with a separate quote and your household’s electricity use.
Ask the provider to explain exactly what “free” refers to. It might mean no deposit, no upfront installation charge or no charge for panels under a particular programme. Those are different arrangements, and none automatically means there will be no later payments or additional costs.
| Offer type | Who may own the system | Where costs may arise | What to confirm |
|---|---|---|---|
| Grant, subsidy or funded programme | You or the programme provider, depending on its terms | Eligibility limits, excluded equipment or work, and any required contribution | Who funds it, who qualifies, what is covered and whether you can verify the programme with the named organisation |
| Loan with no deposit | Often the homeowner, but the finance agreement controls | Interest, fees and repayments over the loan term | Total repayment amount, loan length, fees, early repayment terms and any security over your property |
| Solar lease | Often the leasing company | Regular payments, contract conditions and possible end-of-term charges | Payment schedule, maintenance responsibility, transfer conditions and options when the lease ends |
| Power purchase agreement (PPA) | Often a third-party system owner | Charges for solar electricity under the agreement, plus electricity bought from your retailer | How the solar charge is calculated, how long it applies and what happens if your usage or circumstances change |
The exact terms vary. A provider may combine a finance arrangement with an installation offer, or use different wording from the examples above. Ask for the legal and payment structure in writing rather than relying on a sales description. If the offer refers to a government or community programme, request its full name and eligibility rules, then verify those details with the organisation said to run it. Do not assume an advertisement is an official programme just because it uses that language.
Request a written breakdown showing what the offer includes and what could be billed separately. A panel array is only one part of a working home solar system: the proposal should identify the inverter, mounting equipment, wiring, installation and any other equipment needed for the design. If a battery is mentioned, check whether it is included in the quoted system or offered as an optional extra.
Ask who pays if the installer finds that the roof or electrical setup needs work. Potential extras may include roof repairs, changes to the electrical board, metering work or charges associated with connecting and exporting electricity. These are not necessarily required for every home, so the useful question is whether the provider has assessed your property and who is responsible if additional work is needed.
For a New Zealand installation, ask the provider to explain what approvals or connection steps apply to your local lines company and whether they will organise them. Confirm whether any related fees are included. Also ask which electricity retailer arrangements the savings estimate assumes: the credit for electricity exported to the grid is set by the retailer’s plan, and it may not match the value of electricity you buy from the grid.
For financed offers, compare the amount paid across the full term, not just the first instalment. Get the interest rate, fees, payment frequency, term and total repayment figure. Check whether the advertised payment can change and whether paying early triggers a fee. If the contract uses a lease or PPA, identify every recurring charge and any amount due at the end or when you sell the property.
A solar system can reduce the amount of electricity you buy, but the financial result depends on when your home uses power, how much the system produces and the price or credit applied to electricity. A forecast that counts every unit generated as if it replaces a unit bought from the grid may overstate the benefit, particularly if much of your generation is exported. Ask the provider to show how it accounts for self-consumption and exported electricity separately.
Review the assumptions behind the estimate, including the proposed system size, roof orientation and shading, household consumption, retailer plan and any future changes to electricity use. Check whether the forecast includes a battery. If it does, ask for a separate comparison with and without one, including the battery’s cost and the assumptions about how it will be used. A battery may improve how much solar electricity your household uses, but it adds equipment and cost; it is not automatically the right choice.
For a system you will own, compare the upfront or financed cost with the expected reduction in electricity purchases and export credits. For a lease or PPA, compare the agreement’s payments with the value of the electricity you expect to use and the power you will still need from your retailer. Do not treat an estimated saving as guaranteed income unless the contract clearly says so and explains the conditions.
Get a second written quote using comparable equipment and installation assumptions. Compare system capacity, inverter, battery inclusion, roof work, warranties, connection responsibilities and the savings model, not just the headline price. If one proposal promises much higher savings, ask the provider to identify the specific assumptions that produce the difference.
Ownership determines who can make decisions about the panels and who is responsible for maintaining them. If the system is financed, clarify when ownership transfers and whether the lender has any claim or security connected with the equipment or property. With a lease or PPA, establish which company owns the system and what access it has to your home for inspections or repairs.
Read the maintenance and warranty terms closely. Find out who arranges repairs, whether labour is covered as well as equipment, how to report a fault and what happens if the installer or system owner changes. Ask what the performance estimate assumes over time and whether the agreement offers any remedy if the system does not perform as expected. A product warranty and a promise about energy production are not necessarily the same thing.
Moving house can make a low-upfront-cost offer complicated. Check whether a new owner must take over the agreement, whether the provider’s consent is needed, and whether you can pay to end, transfer or buy out the contract. Ask for the actual process and any applicable charges in writing. If you expect to repair or replace the roof during the agreement, find out who pays to remove and reinstall the panels and whether this affects warranties.
Also check how the contract ends. Depending on the arrangement, you may have to buy the system, renew the agreement, continue paying, or arrange removal. Do not assume the panels become yours automatically at the end of a lease or PPA. The agreement should spell out the available options, costs and deadlines.
A free or low-upfront-cost system is poor value if it is the wrong size for your home or cannot be installed without significant extra work. Ask for a site-specific design rather than accepting a standard package without explanation. The proposal should show the intended panel layout, system size, inverter type and any battery, along with the assumptions used to estimate generation.
Be cautious if a salesperson insists that you need a battery or a particular retailer plan but will not provide a clear comparison. Ask for the solar-only option, the battery option and the assumptions behind each. You should be able to understand the proposal without relying on verbal assurances.
Pause if the offer relies on urgency or promises that sound too broad to verify. Contact the named funder, finance provider or retailer using contact details you find independently, rather than details supplied only in an unsolicited message. For a long-term agreement or a substantial financing commitment, consider getting independent legal or financial advice before signing.
If the provider cannot answer these questions clearly, the offer is not ready for a fair comparison. A genuine low-cost arrangement should still allow you to understand what you are agreeing to, what you may pay and who is responsible for the equipment.
Some offers may cover specified equipment or installation costs for eligible households, but the word “free” alone does not establish what is included. Check for repayments, excluded work, ongoing charges and contract conditions before treating the system as cost-free.
Availability depends on the particular funder, programme, provider and eligibility rules. Ask for the programme’s full name and written terms, then confirm the details with the organisation identified as responsible. Do not assume every advertised offer is government-funded.
Not necessarily. Your home may still use electricity when the panels are not generating enough, and fixed charges or other bill components may remain. The result also depends on how much solar electricity you use at home and the credit your retailer gives for exported power.
No. A no-deposit loan avoids an upfront payment but still requires repayment under the finance agreement. Compare the total amount repayable, including interest and fees, with the cost of a cash purchase and any estimated electricity savings.
Check the agreement before signing to see whether the system or contract can be transferred to a buyer and what approvals or costs apply. If transfer is not possible, find out the buyout or early termination terms rather than assuming the provider will remove the system without charge.
Free solar panels may suit a home when the funding or contract terms are transparent and the system matches the property’s needs. Compare the full cost, ownership, savings assumptions and exit options before committing; the upfront offer is only one part of the decision.
