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At least 37 records · Page 2

DC Solar for All: Implementation Plan to Scale Low- and Moderate- Income Community Solar + Storage Resilience Hubs in the District of Columbia

This implementation plan discusses the District of Columbia's strategy to combine low-income community solar projects with resilience technologies. Through the technical and financial support offered by the Inclusive Shared Solar Initiative and building on extensive stakeholder engagement in LMI neighborhoods around the District, the District of Columbia team expects to reduce energy burdens for LMI residents, address barriers to and streamline SfA program enrollment, and support the development of innovative benefit delivery models, including a community solar-supported climate resilience center.

14 SOLAR ENERGY↗

Using Behavioral Science to Target LMI and High-Value Solar Installations (Final Technical Report)

This project is a data-driven analysis of approaches to facilitate solar adoption in LMI communities and areas with high potential benefits to the electric grid. The cornerstone of the project was two waves of randomized field experiments. The first wave involved novel approaches to reaching LMI communities based on insights from literature. The second wave involved areas of high potential of solar to the electricity grid, as determined in collaboration with the local utilities in Connecticut. Both waves were followed by surveys to develop insight into the effectiveness of different approaches. A third key element of the project is the development of new agent-based models of solar energy diffusion that explicitly incorporate the real spatial and temporal constraints that influence solar diffusion, based on real-world data on solar adoption. The project also involved outreach and dissemination of key findings to relevant stakeholders, including a guidebook on strategies to accelerate solar deployment to low and moderate income communities, multiple academic publications, and numerous presentations of the research findings.

14 SOLAR ENERGY↗

Field experimental evidence shows that self-interest attracts more sunlight

This study examines how messaging approaches in a prosocial intervention can influence not only the effectiveness of the intervention but also, contagion afterward. Our investigation focuses on leveraging two motivations for solar adoption: self-interest and prosocial. Using data from a natural field experiment in 29 municipalities containing 684,000 people, we find that self-interest messaging is twice as effective in inducing solar adoption both during and after the intervention. Adoptions under self-interest messaging have 10% higher net present value, but prosocial messaging increases the likelihood that adopters recommend solar to their friends and neighbors. Income moderates the effectiveness of self-interest messaging, performing much better in high-income communities than low- and moderate-income communities. There was no significant difference across income groups for prosocial messaging. These results provide guidance to policy makers aiming to encourage prosocial behavior across all income groups.

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Affordable and Accessible Solar for All: Barriers, Solutions, and On-Site Adoption Potential

Solar energy technologies can be used as part of a suite of tools to reduce the energy burden of low-income customers, but to date, low- and moderate-income (LMI) customers have not adopted solar at the same rate as other income groups. This paper summarizes the barriers of LMI solar adoption related to finance and funding, community engagement, site suitability, policy and regulatory, and resilience and recovery and discusses existing and potential future solutions to address these barriers. In addition, we model future LMI on-site solar adoption, using the National Renewable Energy Laboratory's (NREL's) dGen model. We model future scenarios assuming no changes in the current LMI solar policy and program environment, and we add two incentives to low-income households for adopting solar: a $\$$3,000 incentive and a full incentive (i.e., the full cost of a PV system). While we model a financial incentive, this dollar reduction in cost could also come from other efforts, for example, reductions in solar soft costs. We find that by 2050, 48-49% of LMI households adopt solar, resulting in $\$$69- $\$$101 billion in first year utility bill savings to these consumers.

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Residential Solar-Adopter Income and Demographic Trends: 2021 Update [Slides]

The report describes income, demographic, and other socio-economic trends among U.S. residential rooftop solar adopters. The report is based on data for roughly 1.9 million residential rooftop solar systems installed through 2019, representing 82% of all U.S. systems. With its unique size, geographic scope, and level of detail, this report is intended to serve as a foundational reference document for policy-makers, industry stakeholders, and researchers. Key findings include the following: Solar adopters generally skew towards higher incomes, though that trend continues to diminish over time. Solar adopter incomes vary considerably and encompass many low-to-moderate income (LMI) households. Solar-adopter incomes are consistently higher for systems paired with battery storage, for host-owned systems, and for systems installed on single-family homes. Solar adopters differ from the broader U.S. population in terms of a variety of other demographic and socioeconomic measures. State-level comparisons indicate that solar-adopters tend to live in neighborhoods with relatively high non-Hispanic White and Asian populations, and with relatively low Hispanic and Black populations. In conjunction with the report, Berkeley Lab has published an updated accompanying set of online data visualizations that allow users to further explore the underlying data. Berkeley Lab is also offering related analytical support to states, local agencies, and other organizations on issues related to solar adoption among low-to-moderate income households.

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The Solar Influencer Next Door: Predicting Low-Income Solar Referrals and Leads

Increasing the adoption of solar among low-to-moderate income (LMI) households remains an important policy goal because of its promise to simultaneously reduce energy burden and support the just distribution of benefits of renewable energy. However, scaling LMI solar remains challenging due to affordability and access issues. Most existing LMI adoption has occurred under public-funded programs, highlighting the importance of increasing the cost-effectiveness of these programs at scale. We develop a new household-level data set on LMI solar lead acquisition, referrals, and adoption to understand the processes through which LMI solar uptake has occurred in California. Then, we develop models to predict two sub-mechanisms in the solar adoption process: whether an otherwise qualified lead becomes "lost" i.e. non-responsive to outreach and, for existing clients, whether they refer solar to others. For the program analyzed, participants received their solar system at no cost, which deemphasizes economic drivers of solar adoption and could differ from other program experiences. Both models substantially improved the accuracy of prediction relative to a baseline. Overall, we find that peer effects and solar economics are important to predicting referrals, and household demographic factors in lead loss prediction. Finally, we find that referrals are both the highest quality and largest source of LMI solar leads, providing a promising mechanism to expand LMI programs further.

customer acquisition costs↗

Residential Solar-Adopter Income and Demographic Trends: 2023 Update [Slides]

The report describes income, demographic, and other socio-economic trends among U.S. residential rooftop solar adopters. The report is based on address-level data for roughly 3.4 million residential rooftop solar systems installed through 2022, representing 86% of all U.S. systems. With its unique size, geographic scope, and level of detail, this report is intended to serve as a foundational reference document for policy-makers, industry stakeholders, and researchers. Key findings include the following: (1) Median solar adopter income was about $\$117$k/year in 2022, compared to a U.S. median of about $\$69$k/year for all households and $\$86$k/year for all owner-occupied households; (2) The degree of income skew varies significantly across all states, but all exhibit some positive income skew relative to all households in the state, with median solar-adopter incomes ranging from 108-180% of the respective state-median income for all households; (3) Roughly 45% of solar adopters in 2022 had incomes below 120% of their area median income (AMI), a threshold sometimes used to define “low-and-moderate income” (or LMI), while 23% were below 80% of AMI, often used to define “low-income”; (4) Solar adoption continues to shift toward less affluent households, with the median current income of solar adopters dropping from $\$140$k for households that installed systems in 2010 to $\$117$k in 2022; (5) PV systems installed in 2022 by households earning less than $50k had a median size of 6.1 kW, 34% were third-party owned, and 5% included battery storage, compared to corresponding values of 7.6%, 17%, and 15% for households earning more than 200 dollars k; and (6) Compared to all households in their respective state, solar adopters tend to be negligibly more rural; have higher home values; and are more likely to be college educated, identify as non-Hispanic white, live outside a disadvantaged community (DAC), be middle-aged, work in a business or financial occupation, and own a single-family home In conjunction with the report, Berkeley Lab has published an updated accompanying set of online data visualizations that allow users to further explore the underlying data. Berkeley Lab is also offering related analytical support to states, local agencies, and other organizations on issues related to solar adoption among low-to-moderate income households.

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Residential Solar-Adopter Income and Demographic Trends: 2024 Update [Slides]

The report describes income, demographic, and other socio-economic trends among U.S. residential rooftop solar adopters. The report is based on address-level data for roughly 4.1 million residential rooftop solar systems installed through 2023, representing 87% of all U.S. systems. With its unique size, geographic scope, and level of detail, this report is intended to serve as a foundational reference document for policy-makers, industry stakeholders, and researchers. Key findings include the following: -The median income of households that installed solar in 2023 was about $\$$115k/year, compared to a U.S. median of $\$$75k/year for all households and $\$$94k/year for all U.S. owner-occupied households. -Compared to owner-occupied households in the same state, 2023 solar-adopter incomes were 7% higher in the median case, and in 10 states, median solar-adopter incomes were below the corresponding median income for all owner-occupied households. -Roughly 49% of solar adopters in 2023 had incomes below 120% of their area median income (AMI), a threshold sometimes used to define “low-and-moderate income” (or LMI), while 26% were below 80% of AMI, often used to define “low-income”. -Solar adoption continues to shift toward less affluent households over time, with the median present-day income of solar adopters dropping from $\$$141k for households that installed systems in 2010 to $\$$115k in 2023. -PV systems installed in 2023 by households earning less than $\$$50k had a median size of 6.4 kW, 33% were third-party owned, and 6% included battery storage, compared to corresponding values of 8.0 kW, 18%, and 14% for households earning more than $\$$200k. -Compared to all households in their respective state, solar adopters in 2023 were slightly more likely to be college educated and to live in rural areas; had higher home values; and were more likely to live outside a disadvantaged community (DAC), be middle-aged, identify as non-Hispanic white, work in a business or financial occupation, and own a single-family home. In conjunction with the report, Berkeley Lab has published an updated accompanying set of online data visualizations that allow users to further explore the underlying data. Berkeley Lab is also offering related analytical support to states, local agencies, and other organizations on issues related to solar adoption among low-to-moderate income households; requests for analytical support may be submitted through this online form.

14 SOLAR ENERGY↗

Low-Income Energy Affordability Data (LEAD) Tool

This resource summary covers the Low-Income Energy Affordability Data (LEAD) Tool, which helps stakeholders make data-driven decisions on energy goals and program planning by improving their understanding of low-income and moderate-income household energy characteristics.

Low-Income Energy Affordability Data Tool, LEAD To↗

Residential Solar-Adopter Income and Demographic Trends: November 2022 Update [Slides]

The report describes income, demographic, and other socio-economic trends among U.S. residential rooftop solar adopters. The report is based on address-level data for roughly 2.8 million residential rooftop solar systems installed through 2021, representing 86% of all U.S. systems. With its unique size, geographic scope, and level of detail, this report is intended to serve as a foundational reference document for policy-makers, industry stakeholders, and researchers. Key findings include the following: -Median solar adopter income was about $\$110$k/year in 2021, compared to a U.S. median of about $\$63$k/year for all households and $\$79$k/year for all owner-occupied households -The degree of income skew varies significantly across all states, but all states exhibit some positive income skew, with median solar-adopter incomes ranging from 131-168% of the respective county-median income for all households -Notwithstanding the fact that solar adopter incomes skew high, a substantial share of adopters could be considered low-to-moderate income (LMI), with 22% of all 2021 adopters earning less than 80% of area median income, and an additional 21% between 80% and 120% of area median income. -Solar-adopter incomes are declining over time, with median incomes dropping from $\$129$k in 2010 to $\$110$k in 2021, as adoption becomes more proportionately distributed across the population and has started to broaden into low- and middle-income states since 2016. -Solar-adopter incomes are consistently higher for systems paired with battery storage, for host-owned systems, and for systems installed on single-family homes; higher income adopters also consistently install larger systems. -Solar adopters tend to live in Census Tracts not identified as “disadvantaged communities” (using the U.S. Department of Energy’s interim definitions developed March 2022), making up 11% of adopters compared to 18% of U.S. households. -Compared to the broader population, solar adopters tend to: identify as Non-Hispanic White, be primarily English-speaking, have higher education levels, be middle-aged, work in business and finance-related occupations, and live in higher-value homes In conjunction with the report, Berkeley Lab has published an updated accompanying set of online data visualizations that allow users to further explore the underlying data. Berkeley Lab is also offering related analytical support to states, local agencies, and other organizations on issues related to solar adoption among low-to-moderate income households; requests for analytical support may be submitted through this online form.

13 HYDRO ENERGY↗

Low-Income Energy Affordability Data - LEAD Tool - 2018 Update

The Low-Income Energy Affordability Data (LEAD) Tool was created by the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA) to help state and local partners understand housing and energy characteristics for the low- and moderate-income (LMI) communities they serve. The LEAD Tool provides estimated LMI household energy data based on income, energy expenditures, fuel type, housing type, and geography, which stakeholders can use to make data-driven decisions when planning for their energy goals. From the LEAD Tool website, users can also create and download customized heat-maps and charts for various geographies, housing, and energy characteristics. Datasets are available for 50 states plus Puerto Rico and Washington D.C., along with their cities, counties, and census tracts. The file below, "1. Description of Files," provides a list of all files included in this dataset. A description of the abbreviations and units used in the LEAD Tool data can be found in the file below titled "2. Data Dictionary 2018". The Low-Income Energy Affordability Data comes primarily from the 2018 U.S. Census American Community Survey 5-Year Public Use Microdata Samples and is calibrated to 2018 U.S. Energy Information Administration electric utility (Survey Form-861) and natural gas utility (Survey Form-176) data. The methodology for the LEAD Tool can viewed below (3. Methodology Document). For more information, and to access the interactive LEAD Tool platform, please visit: https://www.energy.gov/eere/slsc/low-income-energy-affordability-data-lead-tool For more information on the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA), visit: https://betterbuildingsinitiative.energy.gov/accelerators/clean-energy-low-income-communities

affordability↗

Modeling the potential effects of rooftop solar on household energy burden in the United States

Policymakers at the federal and state level have begun to incorporate energy burden into equity goals and program evaluations, aiming to reduce energy burden below a high level of 6% for lower income households in the United States. Pairing an empirical household-level dataset spanning United States geographies together with modeled hourly energy demand curves, we show that rooftop solar reduces energy burden across a majority of adopters during our study period from a median of 3.3% to 2.6%. For low- and moderate-income adopters (at or below 80% and 120% of area median income, respectively), solar reduces median 2021 energy burden from 7.7% to 6.2%, and 4.1% to 3.3%, respectively. Importantly, solar reduces the rate of high or severe energy burden from 67% of all low-income households before adoption to 52% of households following adoption, and correspondingly from 21% to 13% for moderate-income households. Here, we show rooftop solar can support policy goals to reduce energy burden along with strategies such as weatherization and bill assistance.

14 SOLAR ENERGY↗

Expanding the Field of Climate Finance

Over the past twenty-one years, the Financial Innovations Roundtable (FIR), located at the Carsey School of Public Policy at the University of New Hampshire, has worked to address problems related to access to capital for low- and moderate-income consumers and communities. Since 2014, the event has been co-hosted by the Federal Reserve Board. The FIR works with a range of financial institutions, government agencies, foundations, and trade associations to access their expertise for problem-solving discussions. The 2020 FIR focused on the expanding field of climate finance and was co-hosted by the Federal Reserve Bank of San Francisco and The Climate Safe Lending Network. The event was originally slated to be in-person in San Francisco in May 2020 but was postponed due to the pandemic and shifted to an online event hosted November 16‒17, 2020. A significant amount has happened in 2020 on climate finance, racial justice, the economy, and COVID-19. The shocks and stresses of climate change are creating risks in low- and moderate-income communities as well as in the financial sector broadly. The 2020 FIR offered an opportunity to discuss the challenges and opportunities banks and Community Development Financial Institutions (CDFIs) face as they address these risks and how these institutions can help increase individual, institutional, and community-wide resilience. The program explored new and modified products that address climate risk in communities and how those products can be scaled. Conversations focused around: • The progress that has been made in the climate finance field and the challenges that lie ahead for financial institutions’ climate impact and climate-related risk. • Promising opportunities to decarbonize investments and finance low-carbon technology and infrastructure. • How lenders, insurers, housing organizations, and the public sector can work together to reduce housing instability due to climate-related factors and increase the climate-resilience of homes and neighborhoods. • Solutions to help communities address a wide range of related issues, including home weatherization and disaster preparation, home insurance loss, and climate gentrification and displacement. • Discussing lessons learned from other sectors such as renewable energy in order to design both people-based and place-based finance solutions that promote racial and economic inclusion. 1 • The need for all financial institutions to acknowledge that climate risks and racial inequity are systemic risks affecting their bottom line. • The role that bank regulators can play in promoting collaboration across the financial sector and in leading by example with regard to climate finance. • Mapping out concrete action-item initiatives including policy and industry pathways to climate safe lending as well as building a financing platform to provide clean energy to low-income communities. • More broadly, in order to systemically address climate risks, we will need to work together as a range of stakeholders across sectors and collaborate on shared goals and projects.

14 SOLAR ENERGY↗

Power now, pay later: the evolution of U.S. residential solar financing

Most U.S. residential rooftop solar customers finance their solar purchases through loans or by buying power from third-party owned systems. Prior research demonstrates how third-party ownership (TPO) models such as leases emerged in the early 2010s and accelerated solar adoption by low- and moderate-income households while driving market concentration in the installation industry. Since 2015, loans have emerged as a prevalent financing alternative, but the potential effects of loans on the customer base and industry remain understudied. Here, we fill that research gap by developing a methodology to identify loan-financed and third-party owned systems in a household-level solar adopter data set. The data suggest that loans accounted for increasing solar market shares from 2017 until reaching as high as 70% in 2022, but that the market has since shifted back to TPO. The data show that TPO adopters in our sample earned about 16%–18% less and loan recipients earned 3%–7% less, at the median, than customers who self-financed systems. These results reaffirm prior research showing that TPO has accelerated low- and moderate-income adoption and that loans have likewise expanded the customer base to a lesser extent. The results suggest that loan-financed systems entail around a 16%–26% price premium that is only partly explained by loan fees. Finally, the data suggest that the emergence of loans has likely reduced market concentration in the rooftop solar industry.

financing↗