Understanding the Impacts and Barriers of Solar Adoption: A Path to Equitable Energy Transition

The push towards renewable energy in the United States, particularly solar energy, has become more urgent due to the growing need to mitigate climate change and address social disparities. Solar energy, a critical component in transitioning to a net-zero energy system, offers numerous advantages, including job creation, reduced energy costs, and improved public health. However, it is often the communities that are most energy insecure that experience lower access to renewable energy.[1] In addition, residents with less disposable income often pay more for electricity and have limited access to clean and emergency backup power. Bridging this gap and ensuring that disadvantaged communities benefit from renewable energy is essential for achieving environmental justice.

Thankfully, recent technological advancements in solar energy, cost reductions, and its lower emissions profile have made solar power more appealing, especially in urban areas. The electricity sector, on the other hand, is a major contributor to greenhouse gas emissions in the U.S.; it is responsible for 29% of total emissions and 32% of energy-related carbon dioxide emissions.[2] Traditional power generation also emits other harmful pollutants like SO₂ and NOx, which have significant negative health impacts on local communities. Solar energy, with its lower emissions and numerous benefits, therefore, presents a promising alternative to fossil fuels and a powerful tool for mitigating climate change.

Solar-powered electricity generation has grown rapidly worldwide, increasing at approximately 40% per year.[3] Many state and regional governments have implemented renewable portfolio standards (RPS), which are goals for energy producers or providers to supply energy from low or zero carbon emission sources and other incentives to help increase the adoption of renewable energy technologies. These policies have led to the expansion of large-scale solar projects in diverse locations. In the U.S., solar adoption has witnessed significant growth, with residential rooftop solar becoming increasingly popular. According to the United States Energy Information Administration (EIA), small-scale residential PV capacity saw a 43% increase in 2016 from 2015, and the trend is expected to continue.[4] With installation costs dropping by more than 70% over the last decade and various state and federal policies supporting industry growth, there is a growing interest in expanding solar adoption in underrepresented market segments.[5]

Despite the clear benefits and popularity, solar energy adoption is still not evenly distributed. Low-income households and disadvantaged communities often experience lower levels of solar access. According to the Department of Energy’s Solar Futures Study, only 31% of residential solar adopters are households earning less than the area median income (AMI).[6] Several barriers contribute to this disparity:

• Lack of Information and Consumer Awareness: Disadvantaged communities may not have access to reliable information about solar technologies and their potential savings. Language barriers and limited internet access make this problem even worse.
• Financial Constraints: The upfront cost of solar installation can be too high for low-income households. Even with the declining costs of solar PV systems, the initial investment remains a significant hurdle. Additionally, financing options may not be readily available or accessible for these communities.
• Split Incentives: Many low-income households are renters and do not own their rooftops, making it challenging to invest in solar installations. Property owners may lack the incentive to invest in solar energy if the benefits primarily accrue to tenants.
• Policy and Regulatory Barriers: The absence of supportive policies and regulations can hinder solar adoption. State and local governments can play a crucial role in facilitating access to solar energy through incentives, subsidies, and streamlined permitting processes. Without these supports, disadvantaged communities may struggle to embrace solar technologies.

Addressing these barriers requires an all-round approach. Strategies to promote solar adoption in disadvantaged communities include:

• Community Engagement and Education: Partnering with Solar Community Organizations (SCOs) can help spread information and raise awareness about solar energy benefits.[7] SCOs can act as change agents and opinion leaders, providing tailored advice and support to underrepresented communities.
• Community Solar Projects (CSPs): CSPs offer a viable solution to the split incentive challenge. By allowing multiple customers to share a single solar installation, CSPs lower the cost of participation and provide access to solar benefits for renters and those without suitable rooftops. CSPs can significantly reduce electricity expenses for low-income households and promote energy equity.
• State and Local Policies and Programs: Developing and implementing policies that target low- to moderate-income (LMI) households can expand solar access. These programs should consider the unique challenges faced by different communities and provide specific solutions to overcome any barriers.
• Financial Support and Incentives: Providing financial support through grants, subsidies, and low-interest loans can make solar installations more affordable for disadvantaged communities. Innovative financing models, such as on-bill financing programs, can also help overcome financial constraints.
• Resilience Planning: Integrating solar energy into resilience planning can enhance community preparedness for extreme weather events. Rooftop solar systems, coupled with energy storage, can provide reliable power during outages, improving the resilience of vulnerable populations.

To create a more equitable energy system, it is important to understand and address the unique barriers faced by disadvantaged communities in adopting solar energy. By implementing targeted strategies and policies, we can ensure that the benefits of solar energy are accessible to all, regardless of socioeconomic status.

Solar energy offers a path to a cleaner, more sustainable future. Its potential to reduce emissions, improve public health, and stimulate economic growth is undeniable. However, achieving an inclusive energy transition requires collaborative efforts to overcome the barriers that prevent widespread solar adoption. By fostering community engagement, implementing supportive policies, and providing financial incentives, we can bridge the gap and create a brighter, more equitable future for all.

[1] Ross , E., Day , M., Ivanova, C., McLeod, A., & Lockshin , J. (2022). Intersections of disadvantaged communities and renewable energy potential: Data set and analysis to inform equitable investment prioritization in the United States. Renewable Energy Focus, 41, 1-14. doi:https://doi.org/10.1016/j.ref.2022.02.002

[2] Declet-Barreto, J., & Rosenburg, A. A. (2022). Environmental justice and power plant emissions in the Regional Greenhouse Gas Initiative states. Plos one, 17(7). doi:10.1371/journal.pone.0271026

[3] Turney , D., & Fthenakis, V. (2011). Environmental impacts from the installation and operation of large-scale solar power plants. Renewable & Sustainable Energy Reviews, 15(6), 3261–70. doi:https://doi.org/10.1016/j.rser.2011.04.023

[4] Reames , T. G. (2020). Distributional disparities in residential rooftop solar potential and penetration in four cities in the United States. Energy Research & Social Science, 69, 101612–. doi:https://doi.org/10.1016/j.erss.2020.101612

[5] Reames , T. G. (2020). Distributional disparities in residential rooftop solar potential and penetration in four cities in the United States. Energy Research & Social Science, 69, 101612–. doi:https://doi.org/10.1016/j.erss.2020.101612

[6] https://www.energy.gov/eere/solar/solar-futures-study

[7] Noll , D., Dawes, C., & Rai, V. (2014). Solar Community Organizations and active peer effects in the adoption of residential PV. Energy Policy, 67, 330-43. doi:https://doi.org/10.1016/j.enpol.2013.12.050