In the Face of Some Residential Solar Market Tumult, Bright Spots Stand Out

Despite some turbulence in the residential solar market, there are still some bright spots

There will be bumps in the road as we make the transition to a fully decarbonized economy. Residential solar installers will continue to face obstacles, even though there are some bright spots. California and Florida are making headlines with proposals to change policies that encourage rooftop solar adoption. But it's not all bad news for the national residential solar market.

States in different parts of the country have passed laws, put policies into place, or proposed new rules to increase residential solar adoption. Let's take a look at what is happening in some of these states.

Arizona

This is great news for people who have rooftop solar panels in one of the fastest-growing residential solar markets in the United States. An appeals court in Arizona recently ruled that a Phoenix-based utility was overcharging homeowners who had rooftop solar panels.

The three-judge panel of the 9th Circuit Court of Appeals ruled that there was evidence that the price structure for electricity was designed to stop people from using solar energy and to force them to only buy electricity from the company. This is a violation of antitrust laws.

This change should mean that homeowners who sell extra solar power back to the grid get fair market rates. This will hopefully encourage more people to install solar panels.

Connecticut

The Connecticut Public Utility Regulatory Authority (PURA) has been overseeing a program to deploy 580 MW of battery storage throughout the state by 2030.

The program provides money to state residents who want to install electric storage devices in their homes or businesses. The average customer would get around $200 per kilowatt-hour, for a total savings of $2,500. People who live in distressed communities or earn less than 60% of their locality’s median income will get around $4,000 and $5,400, respectively.

This incentive will motivate homeowners to install a rooftop solar system that is paired with an energy storage system. The solar + storage solution will give homeowners more energy independence and added resiliency in the face of power outages caused by extreme weather.

Mississippi

Although Mississippi is not a top state for residential solar adoption, state officials are trying to change that. In an effort to boost solar adoption, the Mississippi Public Service Commission proposed an expansion of its net-metering program to increase rebates rates for solar customers. The state currently ranks near the bottom in terms of residential net-meter adopters.

The new Mississippi rules prioritize low-to-moderate income customers. The upfront rebate for solar projects between 3 and 6 kW would be $3,000 for customers at or below 250% of the poverty line.

Ohio

The Ohio State Senate recently passed a bill that would let people put solar panels on their roofs, even if their homeowners association doesn't want them to. The bill will now go to the Ohio House of Representatives for committee approval and passage. It is expected to pass because it has bipartisan support.

Solar energy is quickly becoming one of the most popular sources of energy in Ohio. There are now more than 200 solar companies in the state, and together they employ over 7,000 people. This makes Ohio one of the top ten states in the U.S. for solar jobs. Industry experts expect this growth to continue in the years to come.

This proposed legislation follows a more significant national trend. For instance, Texas and Illinois passed similar legislation in 2021. This means that homeowners will be able to put solar panels on their houses. Most recently built single-family homes have rules about this from the Homeowner's Association, but this law will make sure that homeowners can still do it.

Despite some states making it difficult to adopt residential solar power, other states are making significant advances in this area.

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