What Is Equitable Access to Solar Energy?
Over the past decade, the costs of solar energy system have fallen and solar electricity has become significantly more affordable for Americans. More than 2 million solar energy systems are operating across the United States. Despite this unprecedented deployment, many Americans still lack access to affordable solar electricity, including many renters, homeowners who lack affordable financing options, and those without suitable roof conditions.
Soft costs, or non-hardware costs, play a role in limiting solar access and affordability. The Department of Energy Solar Energy Technologies Office (SETO) is committed to funding research projects that will lower soft costs and enable all Americans to benefit from solar energy. Learn more about how soft costs work.
Why Is Equitable Access to Solar Energy Important?
Increasing equitable access to solar means that solar energy is available and affordable for all U.S. consumers. Funding research projects in this area enables SETO to address energy burden, which is the percentage of a household’s income that is spent on energy. For low-income households, the energy burden is three times higher than for non-low-income households. A high energy burden can threaten a household’s ability to pay for energy and force tough choices between paying energy bills and buying food, medicine, or other essentials.
By making solar energy’s economic benefits available to all individuals and communities, SETO will come closer to meeting its goals. Learn more about SETO’s goals.
SETO Research in Equitable Access to Solar Energy
SETO identifies strategies for expanding equitable access to solar energy by supporting research, technical assistance, and collaboration among multiple stakeholder groups to solve financing, business, market, and other barriers for residential and community solar, and working to broadly disseminate solutions.
Equitable solar access projects are divided amongst three main areas: data collection and analysis, innovative and equitable financing, and increasing community solar access. Read more about them below.
Data Collection and Analysis
Data collection and analysis plays an important role in allowing more people to access solar energy. Projects in this area gather data to improve market transparency of solar adoption trends and analyze the data to understand the barriers the low- and moderate-income households face in going solar.
DOE’s National Laboratories manage most of SETO’s projects that address equitable solar data collection and analysis and there are several others funded under the Solar Energy Evolution and Diffusion Studies 2 funding program. These projects identify barriers for low-income customers and develop solutions for overcoming those challenges.
Innovative and Equitable Financing
For households without resources to pay for the upfront costs of a new solar installation, the typical financing options are either a loan or a power purchase agreement. But these options can exclude low- and moderate-income Americans, who may not qualify for those financing options.
SETO-funded projects evaluate alternative solar financing models or low-income consumers, develop new tools and methods to better assess credit risk, and engage community financial institutions and other capital sources in expanding solar financing in low-income communities. Projects addressing these issues are funded in the Solar Energy Technologies Office Fiscal Year 2019 funding program and the Solar Energy Technologies Office Fiscal Year 2018 funding program.
Increasing Community Solar Access
The Department of Energy defines community solar as any solar project or purchasing program, within a geographic area, in which the benefits of a solar project flow to multiple customers such as individuals, businesses, nonprofits, and other groups.
Most recently, SETO launched the National Community Solar Partnership, which consists of a coalition of community solar stakeholders working to expand access to affordable community solar to every American household by 2025 and enable community solar to provide meaningful benefits to customers. Partners leverage peer networks and technical assistance resources to set goals and work to overcome persistent barriers to expanding community solar access to underserved communities.
Previously, the Solar In Your Community Challenge, a $5 million prize competition, spurred the development of new and innovative financial and business models that serve non-rooftop solar users. Teams developed projects or programs that expanded solar access to underserved groups and proved their business models can be widely replicated and adopted. Read a report on the challenge.
SETO also funded several projects to research how community and shared solar can increase solar energy access in the Solar Market Pathways funding program.
Lab Reports and Other Resources
- Unlocking Solar for Low- and Moderate-Income Residents: A Matrix of Financing Options by Resident, Provider, and Housing Type (National Renewable Energy Laboratory)
- Income Trends of Residential PV Adopters: An Analysis of Household-Level Income Estimates (Lawrence Berkeley National Laboratory)
- Up to the Challenge: Communities Deploy Solar in Underserved Markets (National Renewable Energy Laboratory)
- Shared Solar: Current Landscape, Market Potential, and the Impact of Federal Securities Regulation (National Renewable Energy Laboratory)
- Webinars: Solar Energy Evolution and Diffusion Studies (National Renewable Energy Laboratory)
- Rooftop Solar Technical Potential for Low-to-Moderate Income Households in the United States (National Renewable Energy Laboratory)
- Community Solar Opportunities for Low to Moderate Income Households in the Southeast (NC Clean Energy Technology Center)
- Solar For All Tool (National Renewable Energy Laboratory)
- Low-Income Energy Affordability Data (LEAD) Tool (Department of Energy)
- Community Solar Program Design Models (Smart Electric Power Alliance)
To view specific projects that support equitable access to solar energy, search the Solar Energy Research Database.