Free solar panels & rent-a-roof: what these offers actually mean

If you have seen adverts for “free solar panels” or been approached by a company offering to install solar at no cost, here is what is actually going on, what happened to the rent-a-roof schemes of the 2010s, and the one thing that matters most: whether you will own the panels at the end of the process.

The FIT era: how rent-a-roof schemes worked (2010–2019)

Between 2010 and 2019, the government's Feed-in Tariff (FIT) paid households a fixed rate for every kilowatt-hour of electricity their solar panels generated — regardless of whether that electricity was used at home or exported. At the peak of the scheme, rates were over 40p/kWh for generation, for 20–25 years.

This created a profitable model for companies: install panels on someone's roof at zero cost to the homeowner, register as the system owner, collect the government FIT generation payments for 25 years, and let the homeowner use the solar electricity for free. The company recovered its installation cost and made a profit on the FIT income.

For homeowners, the deal was: free electricity during daylight hours, no capital outlay, but no financial ownership of the scheme benefits. You could not transfer ownership of the FIT payments if you sold the property (though panel ownership and associated rights would usually transfer to the new buyer as part of the sale, with the lease obligation coming with it).

Why rent-a-roof schemes are effectively dead

The Feed-in Tariff closed to new applicants in January 2020. Overnight, the financial model that made rent-a-roof schemes viable disappeared. The replacement — the Smart Export Guarantee — only pays for electricity exported to the grid, not for total generation. At rates of 1–30p/kWh for export only, there is no longer enough income for a company to profitably install panels for free and recoup costs over 25 years.

New rent-a-roof schemes offering free residential solar have not emerged since 2020. There is no credible business model for them under the current SEG framework.

Some commercial Power Purchase Agreements (PPAs) exist where a company funds solar on a business property, keeps the SEG income, and sells the electricity to the business below grid price. This is the commercial analogue of rent-a-roof, and it can make sense for businesses with large daytime electricity demand and commercial roof space — but it is not a residential consumer product.

What “free solar” means today

When you see “free solar panels” advertised in 2026, it means one of three things:

1. ECO4 (genuinely free, with conditions)

The only route to a free residential solar installation today is ECO4. Under ECO4, the government-mandated scheme funds a complete solar installation for lower-income households who meet the eligibility criteria. You own the panels outright. This is the real deal. But it has genuine eligibility requirements — income under £31,000 (or qualifying benefits) and an EPC rating of D or below. No cold caller can determine your eligibility before properly verifying these facts.

2. A lease or solar finance arrangement (you do not own the panels)

Some companies offer “free installation” in exchange for a long-term lease of your roof or a solar finance agreement where they retain ownership. You get cheaper electricity from the panels while the company collects the SEG export payments and any other income. These are sometimes called solar as a service or zero-upfront installs.

These arrangements are not inherently fraudulent, but the term “free solar” is misleading when you are entering a 20–25 year financial obligation. The risks are:

• No SEG income: The panel owner collects export payments, not you. Over 20 years at £200–£400/year, that is £4,000–£8,000 you will not receive.
• Mortgage complications: Lenders increasingly scrutinise lease arrangements on properties. Remortgaging can become more complicated with a third-party lease attached to your roof.
• Sale complications: The lease obligation transfers with the property. Some buyers are put off; some solicitors flag it as a problem.
• Locked-in terms: Long lease contracts with escalating annual charges or fixed penalty clauses for early exit are common. Read the full contract carefully.

3. A scam or misleading marketing

Cold calls offering “free government solar” to anyone regardless of income are a red flag. Legitimate ECO4 installers do cold-call, but any legitimate process will involve a formal eligibility check before installation, not a “sign here and we'll be there next week” approach. Pressured sign-ups, requests for upfront cash, and vague contract terms are warning signs.

The ownership question: why it matters

The single most important question to ask about any solar offer is: who will own the panels?

• You own the panels: You can register for SEG and collect export payments yourself. You benefit fully from self-consumption savings. Selling the property transfers a clean asset. Remortgaging is straightforward.
• Company owns the panels: You get cheaper electricity during daylight hours. The company gets SEG payments and owns the asset. You carry the lease obligation and associated complications.

This distinction is not always made clear in “free solar” marketing. Ask for it in writing before agreeing to anything.

Historical FIT panels: if you already have a lease

If you bought a property with solar panels already installed under a historical FIT lease, you need to understand what you inherited. Check:

• Who holds the FIT registration (find out via Ofgem's register).
• Whether the lease is still active and who is receiving the FIT payments.
• The remaining term of the lease agreement.
• Whether you can buy out the lease (some companies allow this for a lump sum).

If the FIT registration was transferred to you when you bought the property, you may now be receiving the FIT payments yourself — check with your energy supplier.

Frequently asked questions