Why Free Solar Panels In Maryland Aren't Actually Free

Table of Contents

How "Free Solar Panel" Programs Really Work

The Hidden Costs Nobody Mentions Upfront

What Maryland Homeowners Actually Qualify For

The Real Math Behind Solar Ownership

Installation Quality and Long-Term Service Concerns

Impact on Home Value and Future Flexibility

What Reputable Solar Companies Offer Instead

Making the Right Decision for Your Maryland Home

You've probably seen the ads. Promises of free solar panels plastered across social media feeds, tucked into local newspapers, and maybe even heard from a persistent door-to-door salesperson. The pitch sounds appealing: save money on your electric bill while getting a solar system installed at no cost. For Maryland homeowners facing rising electricity rates, these offers can seem like the perfect solution to mounting energy expenses.

The truth is far less appealing than the marketing suggests. What companies advertise as "free solar panels" normally involve leasing arrangements or power purchase agreements that transfer ownership benefits to someone else while you get stuck with restrictions and hidden costs. These deals might reduce your monthly electric bill in the short term, but they can create problems that cost you thousands of dollars down the road. Before you sign any agreement promising free solar panels, you should know exactly what you're getting into and what you may be giving up.

How "Free Solar Panel" Programs Really Work

Solar companies offering free installations aren't running charities. They're businesses looking to profit from state incentives, and the long-term revenue stream your roof provides. When a company offers to install solar panels at no upfront cost, they retain ownership of the system and claim all the financial benefits that come with it. You're essentially renting space on your roof to a solar company that collects the incentives you could have claimed yourself.

Most free solar programs fall into two categories: solar leases and power purchase agreements (PPAs). 

• Solar Leases: With a solar lease, you pay a fixed monthly fee to use the solar system installed on your home, similar to leasing a car. The monthly payment stays the same regardless of how much electricity the panels generate. 

• Power Purchase Agreements: Power purchase agreements work differently by charging you for the actual electricity the system produces, usually at a rate lower than your utility company charges. 

Both arrangements mean you don't own the equipment, can't claim tax credits, and must deal with restrictions if you want to sell your home or make changes to your roof.

The companies making these offers bank on homeowners not doing the math. They claim state and local incentives, renewable energy credits they can sell, and accumulated depreciation benefits. Meanwhile, you make monthly payments for 20 to 25 years without building any equity in the system. The total amount you pay over the contract term can exceed what you would have spent buying the system outright, even with financing.

The Hidden Costs Nobody Mentions Upfront

Monthly lease or PPA payments might start lower than your current electric bill, but they rarely stay that way. Contracts typically include annual escalators that increase your payment by 2% to 4% each year. By year ten, your monthly solar payment could be 20% to 40% higher than when you started. Meanwhile, if you owned your system, your costs would remain minimal after paying off any financing, giving you decades of nearly free electricity.

Selling your home also becomes far more complicated when you don't own the solar panels on your roof. Potential buyers must qualify for the lease assumption and agree to take over the remaining contract term, which could span another 10 to 15 years. Many buyers refuse to accept this obligation, forcing you to either buy out the lease early (at costs that can reach $10,000 to $20,000) or watch qualified buyers walk away from your property. 

Other concerns include:

• If you need to replace your roof during the lease term, you'll have to pay several thousand dollars to have the solar company remove and reinstall the panels. 

• Your homeowners' insurance might increase because the lease company requires you to carry additional coverage. 

• If the system malfunctions or produces less electricity than promised, you'll spend time dealing with the leasing company's customer service while still making your monthly payments. 

As you may imagine, these hassles pile up over a 20-year contract term!

What Maryland Homeowners Actually Qualify For

Maryland residents who own their solar systems can claim a property tax exemption for solar installations, meaning your higher home value from adding solar won't increase your property taxes. 

Local utilities provide additional incentives through renewable energy credit programs. When you own your system, you can sell the Solar Renewable Energy Credits (SRECs) it generates, creating an additional income stream worth hundreds or even thousands of dollars annually, depending on market rates. Maryland's SREC market has historically been one of the more valuable in the country. Leasing companies keep this revenue for themselves as part of their profit model.

Net metering policies in Maryland allow system owners to receive credits for excess electricity they send back to the grid. During months when your panels produce more than you consume, your utility company banks these credits for use during lower production periods. This arrangement can reduce your annual electricity costs close to zero if your system is sized correctly. While lease and PPA customers can benefit from net metering, they're still making monthly payments to the solar company on top of any remaining utility charges.

The Real Math Behind Solar Ownership

It typically costs around $13,307 to install a 5-kilowatt (kW) solar panel system in Maryland before any available incentives (Actual cost will depend on your system size). With average electricity rates in Maryland around $0.14 per kilowatt-hour and climbing, a properly sized system can eliminate thousands of dollars in annual electricity costs. Once the system pays for itself in six to ten years, after which you enjoy free electricity for the remaining 15 to 20 years of the panels' productive life.

Electricity rates in Maryland have risen steadily over the past decade, and this trend shows no signs of reversing. BGE customers saw rates increase by approximately 26% between 2020 and 2023. When you own your solar system, you're protecting yourself against future rate hikes. The electricity your panels produce costs the same today as it will in 20 years, effectively locking in your rate at the price you paid for the system divided by its lifetime production. This hedge against inflation becomes increasingly valuable as utility rates continue their upward climb.

Financing options make ownership accessible without large upfront payments. Solar loans spread the cost over 10 to 25 years with monthly payments comparable to or lower than many lease arrangements. The difference is that once you pay off the loan, the system is yours free and clear. Interest rates on solar loans have also become increasingly competitive, and tax credits help offset financing costs. Many Maryland homeowners find that their loan payment plus minimal remaining utility bill equals less than what they previously paid for electricity alone.

Comparing a 20-year lease to system ownership reveals the true cost of "free" panels. For example, your Maryland lease might start at $150 per month with 3% annual increases. Over 20 years, you'll pay approximately $49,000 and own nothing at the end. You can buy the same system for $25,000. You'd save $24,000 and own an asset that continues producing free electricity for years after the loan is paid off.

The return on investment becomes even better when you factor in SREC income. Maryland homeowners who own their systems can earn between $500 and $800 per year for standard SRECs and potentially up to $700-$900 for certified SRECs during the first few years of operation, depending on market conditions. This additional income stream reduces your actual system cost and accelerates the payback period. Over the life of your system, SREC sales could total $10,000 to $15,000, which goes to you rather than a third party.

Installation Quality and Long-Term Service Concerns

Companies offering free solar installations make money on volume, not quality. They need to install as many systems as quickly as possible to maximize their tax credit claims and start collecting monthly payments. This business model can lead to rushed installations, lower-grade equipment, and inexperienced crews. When problems arise years later, you might find the original installation company has gone out of business or been sold to another entity with different service standards.

System maintenance and repairs fall into a gray area with leased systems. While the lease company technically owns the equipment and should handle repairs, getting timely service can be frustrating. Your urgency to restore power production doesn't always align with their service schedule priorities. Owned systems, on the other hand, give you control over maintenance decisions and the freedom to choose qualified local technicians who respond quickly to your needs.

With solar energy systems, equipment selection is key for long-term performance. Budget-focused lease companies might install cheaper panels and inverters to maximize their profit margins. These components often carry shorter warranties or have higher failure rates than premium equipment. When you buy your own system, you can choose high-quality panels with 25-year production warranties and reliable inverters backed by established manufacturers. This choice directly impacts your system's longevity and electricity production over decades.

Impact on Home Value and Future Flexibility

Owned solar systems increase home values significantly. Recent studies found that homes with solar panels sell for 5% to 10% more than comparable homes without solar, with some research showing increases of up to $4,000 to $6,000 per kilowatt of installed capacity. For a typical home with a 10-kilowatt system, this translates to a potential value increase of $20,000 to $60,000. 

Buyers recognize the value of decades of reduced electricity costs. Leased systems provide no such benefit and can actually deter buyers or reduce your selling price by the present value of the remaining lease obligations.

You’ll also want to consider future roof repairs or replacements, which can't always wait for convenient timing. Roofs typically last 20 to 30 years, and if yours needs replacement during a solar lease term, you're stuck. The process of temporarily removing panels, making roof repairs, and reinstalling the array can cost $3,000 to $6,000 beyond your roofing expenses. If you own the system, you have the flexibility to work with local solar companies that can coordinate these activities efficiently and at competitive rates.

Home additions, renovations, or even tree trimming decisions require coordination with the lease company since changes might affect panel production. This lack of control over your own property can become increasingly frustrating over a 20-year term. Ownership means you make decisions based on your family's needs without seeking approval from a third party whose interests don't necessarily align with yours.

What Reputable Solar Companies Offer Instead

Honest solar installers like Solair Green Energy Advisors focus on helping you own a system that makes financial sense for your situation. We provide detailed production estimates based on your roof orientation, shading conditions, and historical electricity usage. You receive multiple equipment options with clear explanations of how different panels and inverters affect performance and cost. Transparent pricing includes all installation expenses, permits, and interconnection fees without hidden charges.

We also employ certified installers who follow manufacturer specifications and local building codes. They pull proper permits, pass inspections, and provide warranties covering both equipment and workmanship. Our business model depends on satisfied customers who refer friends and neighbors, not on high-pressure sales tactics and misleading promises. We stay in business by building long-term relationships with the communities we serve.

At Solair, we also help you maximize available incentives while finding the best payment option for your budget. We’ll assist with state and local rebate applications, and connect you with competitive loan options if needed. Our goal is your long-term satisfaction and energy savings, not locking you into a profitable lease agreement. 

Making the Right Decision for Your Maryland Home

Start by calculating your actual energy needs and costs. Review a full year of utility bills to find your average monthly consumption and total annual expenses. This baseline helps you size a system appropriately and project realistic savings. Maryland homeowners typically use between 12,000-16,800 kilowatt-hours annually, requiring a system size of 10 to 13 kilowatts to offset most electricity consumption.

Get multiple quotes from local installers who don't push leases or PPAs. Request proposals that include system specifications, production estimates, total costs, and projected savings over 25 years. Compare not just the initial price but also equipment quality, warranties, and the company's track record in your area. Maryland has many qualified solar installers who prioritize customer education over high-pressure sales tactics.

You should also run the numbers yourself rather than relying on a salesperson's projections. Calculate the after-incentive cost of ownership and compare it to your projected electricity savings. Factor in your expected time in the home, any planned roof work, and how solar might affect your property value. If you need financing, compare solar loan terms and remember that even with interest charges, ownership almost always beats leasing over the long term.

Own Your Panels With Solair

Nothing in life is truly free, and solar panels are no exception. Companies making "free" offers profit from incentives that should be yours, lock you into long-term payment obligations, and create headaches if you need to sell your home or make changes to your roof. The monthly savings they promise disappear when you add up 20 years of escalating payments and missed opportunities to build equity in a valuable home improvement.

Making the switch to solar energy can be one of the smartest financial decisions for your Maryland home. The savings add up year after year, building wealth while reducing your carbon footprint. Just make sure you're actually getting the benefits rather than handing them to a leasing company in exchange for a "free" installation that costs you thousands in the long run. 

Do your homework, compare ownership costs to leasing payments, and choose a reputable local installer who puts your interests first. At Solair Green Energy Advisors, we can help you install the system you need at a price you can afford, all while enjoying low-cost electricity and increased home value that true solar ownership provides. For more information, call 302-841-1108 or fill out our simple contact form.