In the pursuit of sustainable energy solutions, the adoption of solar power has become increasingly prevalent across the United States.
As communities seek to harness renewable energy sources, the importance of understanding regional disparities in solar-friendliness becomes paramount.
This report aims to provide insight into the top three solar-friendly states as well as the bottom three, based on comprehensive data analysis.
By examining key metrics such as solar policies, incentives, infrastructure, and adoption rates, we offer a nuanced perspective on the varying degrees of solar-friendliness exhibited by different states.
Top Three States for Solar Integration
Multiple factors influence a state’s suitability for homeowners contemplating rooftop solar panel installation.
Affordability of installation, high retail energy prices, and extended peak sunlight hours in certain states encourage alternative energy adoption.
State legislative frameworks and regulatory policies play a pivotal role in either promoting or hindering homeowner uptake of solar energy solutions.
Hawaii -Solar Score: 75.14 out of 100
High retail electricity prices in Hawaii make it an ideal location for rooftop solar panel installations. Despite limitations on net metering and modest compensation rates for surplus power, the potential cost savings of solar energy outweigh these barriers.
Hawaii’s initiative integrating rooftop solar with grid-connected batteries facilitated the shutdown of its last coal-fired power plant, replacing it with solar energy.
With the highest rooftop solar capacity in the nation, surpassing California, Hawaii has maintained low installation costs, ranking 14th lowest nationwide.
Delaware — Solar Score: 54.94 out of 100
Delaware offers affordable installation costs, moderate solar potential, and favorable solar policies, including net metering and power purchase agreements.
The state has supported community solar projects and launched a program to provide free solar panels to low-income homeowners in recent years.
However, a challenge arises from technical constraints.
The Delaware Electric Cooperative, serving a significant portion of residential customers, restricts new rooftop solar connections in many areas due to infrastructure limitations, hindering further solar integration.
Arizona — Solar Score: 54.56 out of 100
Arizona offers the highest solar potential nationwide with relatively low rooftop solar installation costs.
The state’s favorable solar policies, including a tax exemption and legalized power purchase agreements, have led to its ranking as the third state with the most rooftop solar capacity per capita.
However, challenges may arise as the Arizona Corporation Commission, the state’s utility regulator, reviews compensation rules for excess electricity from homeowners’ solar panels.
Despite widespread support for maintaining existing rules, the outcome of the review is pending.
Bottom Three States for Solar Adoption
In states with low electricity costs and sparse solar infrastructure, homeowners face hurdles when adopting solar energy.
Some states lack clear regulations on power purchase agreements, vital for offsetting solar installation costs.
Despite challenges, investing in solar energy remains advantageous, albeit demanding.
Homeowners must anticipate additional efforts and potential difficulties when transitioning to rooftop solar systems.
Indiana — Solar Score: 15.88 out of 100
Indiana grapples with the highest rooftop solar installation expenses due to the lack of statewide rebates, reducing the economic appeal of solar energy compared to other states.
Following the expiration of Indiana’s net metering policy on July 1, 2022, replaced by a less favorable compensation system, solar installations plummeted by 67%.
Additionally, in late 2023, electric utilities proposed a substantial increase in residential electricity rates, resulting in anticipated higher power bills for residents in 2024, despite regulatory intervention to mitigate the hike.
Arkansas — Solar Score: 21.48 out of 100
Arkansas encounters hurdles in maximizing its solar potential due to low residential electricity prices, lack of statewide installation support, and limitations on power purchase agreements.
Additionally, recent legislation reducing compensation rates for homeowners with rooftop solar panels has compounded the economic disincentives for solar adoption among residents.
Tennessee — Solar Score: 23.33 out of 100
Tennessee’s low electricity rates hinder widespread rooftop solar adoption due to the lack of state rebates and a minimal reimbursement rate for surplus power.
Despite these obstacles, a recent agreement with the Tennessee Valley Authority introduces a program allowing select Nashville residents to receive credits for excess electricity generated by rooftop solar systems.
