For the first time in decades, US demand for electricity has increased because of the expansion of large data centers, electrification of transportation and buildings, and advanced manufacturing. To keep up, energy utility companies need to increase their capacity and expand their infrastructure, raising energy costs for everyone.
When mounted on residential roofs, small-scale solar installations—also known as distributed solar—can help lower rising energy bills by offsetting or eliminating household energy costs. Distributed solar is also one of the fastest ways to deliver more electricity to the grid, which can help energy utilities meet the growing demand. In recent years, this technology has become much more economically viable, and state and local policymakers nationwide have increasingly encouraged its adoption.
Why This Matters
Households with high energy burdens—those spending 6 percent or more of income on energy bills—are often forced to cut back on heating, cooling, and other necessary expenses, such as groceries or medication. Nationwide, households with low incomes as well as Black and Latina/o households are most likely to experience high levels of energy burden. By expanding rooftop solar capacity, communities can lower household energy bills and advance other community-wide outcomes, including small business growth and job creation, reduced pollution, and greater housing stability.
However, not all communities are well-positioned to act on rooftop solar opportunities. Some housing features and weatherization barriers can make rooftop solar more expensive to install and less effective once deployed. Effective rooftop solar installation requires a structurally sound roof that will last at least as long as the new solar installation—which many homes across the country lack. In fact, many of the low-income communities and communities of color which could most benefit from rooftop solar often face the greatest barriers to installation because of unsuitable housing conditions.
What We Found
To identify neighborhoods with ample opportunity for rooftop solar installations, we developed the Solar Opportunity Index, which 1) pinpoints neighborhoods with high energy burdens, low income levels, and high shares of Black and Latina/o homeowners that would most benefit from solar installations and 2) visualizes the solar readiness of these neighborhoods by quantifying the number of residences ready for solar installation now and residences that would require roof upgrades first.
This dual use allows us to identify neighborhoods where state, municipal, and community leaders can quickly deploy rooftop solar as well as neighborhoods where home rehabilitation investments may be needed to maximize solar benefits. We applied the methodology in Chicago, Illinois, and Houston, Texas—two large cities with distinct energy and regulatory contexts, climate and weather risks, and housing stocks. We also compiled recommended strategies that any municipality can use to expand solar opportunity in their community.
In Chicago, we found that the neighborhoods with the greatest potential for solar benefit are predominantly clustered in the South Side and Southwest Side areas of the city. These neighborhoods include the Chicago Lawn, West Englewood, Englewood, and Washington Park, among others. We estimate that at least 56,503 Chicago homeowners could benefit from installing rooftop solar panels. We categorized the properties within these high solar-benefit neighborhoods as:
- Ready for solar now – Residences with no major tree overhang and sloped roofs made of materials suitable for solar that were in fair or better condition and could support at least eight solar panels.
- Ready if rehabilitated – Residences with no major tree overhang and sloped roofs made of materials suitable for solar, but the roofs were in poor condition.
- Not solar candidates – Residences with roofs that were too small, covered by tree overhang, flat, or built with wood shingles, which are less suitable for solar.
Overall, we found 9,088 owner-occupied, single-family properties were in high-potential areas, with roughly half of those properties ready for solar now and another 1,801 properties ready for solar with roof repairs.
More than 80 percent of unsuitable residences in the high-potential tracts had flat roofs, which local solar experts described as typically too expensive to retrofit as they tend to retain water from rain and snow, leading to leaks. Some installers we interviewed said that they will not work on flat roofs at all because of water problems, which the installer must pay for when the panels are under warranty. As a result, many households with low incomes living in 1- to 4-unit multifamily buildings are not able to access on-site solar energy.
Even households that are ready for solar still face administrative and policy barriers, such as:
- complicated and restrictive application requirements,
- lengthy permitting processes,
- expensive upfront costs deterring installers from taking contracts, and
- increased fees and long or indeterminate wait times to upgrade and connect panels to existing electricity grids.
To address these barriers, states, municipalities, philanthropies, and community-based organizations can get creative about solar financing—from initial repairs through long-term use—by leveraging federal, state, and philanthropic funds. These groups can also ease permitting and administrative burdens for installers and explore neighborhood-level solar installations so homeowners and renters living in unsuitable properties can reap the benefits of solar.
With these steps and others detailed in our report, Chicago can expand solar opportunity, alleviate high energy cost burdens, and improve residents’ quality of life.
In Houston, we found that the neighborhoods with the greatest potential for solar benefit are primarily clustered in eastern and northeastern parts of the city. These neighborhoods include Pleasantville, Denver Harbor/Port Houston, Eastex-Jensen, Magnolia Park, Harrisburg/Manchester/Smith Addition, and Kashmere Gardens, among others. We estimate at least 47,732 Houston homeowners across these neighborhoods could benefit from installing rooftop solar panels. We then categorized the properties within these solar-benefited tracts as:
- Ready for solar now – Residences with no major tree overhang and sloped roofs made of materials suitable for solar that were in fair or better condition and could support at least eight solar panels.
- Ready if rehabilitated – Residences with no major tree overhang and sloped roofs made of materials suitable for solar, but the roofs were in poor condition.
- Not solar candidates – Residences with roofs that were too small, covered by tree overhang, flat, or built with wood shingles, which are less suitable for solar.
Overall, we found that 24,300 owner-occupied, single-family properties were in high-potential areas, with nearly 40 percent of these properties ready for solar now and another 5,246 properties ready for solar with roof repairs.
More than 80 percent of unsuitable residences in the high-potential tracts had flat roofs, which local solar experts described as typically too expensive to retrofit as they tend to retain water from rain and snow, leading to leaks. Some installers we interviewed said that they will not work on flat roofs at all because of water problems, which the installer must pay for when the panels are under warranty. As a result, many households with low incomes living in 1- to 4-unit multifamily buildings are not able to access on-site solar energy.
Even households that are ready for solar still face administrative and policy barriers, such as:
- complicated and restrictive application requirements,
- lengthy permitting processes,
- expensive upfront costs deterring installers from taking contracts, and
- increased fees and long or indeterminate wait times to upgrade and connect panels to existing electricity grids.
To address these barriers, states, municipalities, philanthropies, and community-based organizations can get creative about solar financing—from initial repairs through long-term use—by leveraging federal, state, and philanthropic funds. These groups can also ease permitting and administrative burdens for installers and explore neighborhood-level solar installations so homeowners and renters living in unsuitable properties can reap the benefits of solar.
With these steps and others detailed in our report, Chicago can expand solar opportunity, alleviate high energy cost burdens, and improve residents’ quality of life.
Millions of homeowners nationwide, particularly those in lower income communities, could benefit from the economic, housing, and quality of life benefits that rooftop solar offers. However, many households currently face barriers to doing so. Some lack the financing to afford necessary home repairs, while others live in residences that are structurally unsuitable for rooftop solar systems. Solar installers in many areas face long permitting processes and high upfront costs. And many state and federal solar programs subsidize panel installations but leave homeowners on the hook for the cost of roof repairs and electrical upgrades, effectively excluding those who could benefit the most financially from accessing the benefits of solar.
To overcome these barriers, policymakers, community organizations, philanthropies, and other funders can leverage the solar-enabling strategies outlined below—as well as many additional opportunities and examples detailed throughout our full brief.
Key Strategies for All Stakeholders
- Dedicate funding for residential repairs: Local and state governments, philanthropy, and other lenders can provide grants and low or no-cost financing options for necessary roof repairs and housing improvements as a bridge for households that are otherwise eligible for state and federal solar programs.
- Support ongoing maintenance costs: State and federal solar programs, philanthropy, and other funders can help create or expand grant opportunities to cover solar maintenance costs over the lifespan of solar installations. These ongoing costs are critical to ensuring the long-term performance and financial viability of solar investments, particularly for low-income households who can least afford them. Local solar program administrators can also leverage local funding sources and advocate for administrative reforms to federal and state programs to ensure they adequately cover the full lifecycle costs of solar installations.
- Generate transparent public data on energy costs: Combined efforts from state and local policymakers, energy companies, and private solar programs to provide consistent and transparent public data and realistic savings estimates in different regulatory, incentive structure, and solar ownership contexts will help households make informed decisions and ensure solar investments and incentive programs help lower energy bills.
- Expand community installations: In neighborhoods where rooftop solar is limited by housing characteristics or other barriers, residents can still benefit from cost savings through neighborhood-scale solar installations. Community organizations and philanthropies can partner with utilities, government agencies, faith institutions, and schools to deploy these shared systems—and identify opportunities to repurpose vacant or blighted lots as sites for community-serving solar projects.
Strategies for Policymakers and Program Administrators
- Simplify permitting: States and municipalities can ease permitting and simplify requirements for technically simple solar installations from proven contractors with established track records and move permitting processes online for distributed solar projects.
- Expand eligibility: Federal and state policymakers can modify eligibility requirements for solar incentive programs to operate at the neighborhood rather than the household level. This change would streamline program administration and reduce the burden on individual households and private landlords to navigate complex application processes, thus increasing access to solar.
- Overcome barriers in deregulated markets: States can establish public benefit charges to fund rooftop and community solar installations independent from utilities. These funds can include specific provisions for households with low incomes—such as carve-outs and bill credit guarantees. States can also pass legislation guaranteeing interconnection rights, net metering access, and bill crediting to ensure rooftop solar can compete in deregulated energy markets.
Strategies for Solar Installers, Community Organizations, and Philanthropies
- Expand residential ownership models: Many rooftop solar installers retain ownership of installed panels, with homeowners paying the installer for the electricity. This arrangement can facilitate installation but can also lead to lower cost savings for homeowners. Solar programs can partner with community organizations to expand third-party ownership models, which can increase savings for homeowners while maintaining reduced upfront costs for installers.
- Invest in outreach and education: Community organizations working to deploy rooftop solar in underserved communities can build community trust and knowledge about solar by recruiting and training “solar ambassadors” to deliver culturally responsive outreach and multilingual education programs tailored to local experiences and needs. They can also connect residents to high-paying, solar-related career pathways including related trades such as electricians and contractors.
- Strengthen technical assistance: Community organizations can work to identify and address challenges well in advance of solar deployment to ensure neighborhoods are “ready to get ready” for solar. Through technical assistance, community organizations and funders can support long-term capacity building, develop guidance on installation and permitting requirements, and provide financial resources to support meaningful community engagement, which can empower residents to shape the vision and direction of solar initiatives.
