Solar energy has become one of the most accessible and cost-effective renewable energy sources in the U.S., thanks to significant advancements in technology, federal support, and growing demand. Over the past decade, the cost of solar installation has plummeted by more than 40%, spurring a rapid expansion of solar capacity and opening the door to renewable energy for millions of Americans.
Driving Forces Behind the Drop in Solar Costs
Technological Advancements: Innovation in photovoltaic (PV) technology has made solar panels more efficient and cheaper to produce.
Increased Demand: Rising interest from households, businesses, and public institutions has encouraged competition and economies of scale, further driving down costs.
Federal Policies: Programs like the Investment Tax Credit (ITC) and provisions in the Inflation Reduction Act (IRA) have provided financial incentives to both solar developers and consumers, accelerating adoption.
Solar Energy By the Numbers
In 2023, solar installations grew by an impressive 51%, adding to the U.S.'s 179 gigawatts (GW) of installed capacity.
This capacity is sufficient to power 33 million households, underscoring the transformative potential of solar energy.
The Rise of Community Solar
Community solar has emerged as a key solution to making solar energy more inclusive. By allowing households to subscribe to shared solar farms, this model provides access to solar power for those who cannot install rooftop panels, such as renters or low-income families. Community solar projects have expanded significantly, growing by 80% annually over the last decade, with capacity expected to double to 14 GW by 2028.
The Importance of Policy
State and federal policies have played a critical role in making solar energy more affordable and accessible. For example:
43 states and D.C. now host at least one community solar farm.
22 states and D.C. have laws enabling or requiring community solar projects.
19 states and D.C. have specific programs targeting low- and moderate-income participation.
Solar Energy for All
Falling costs and innovative models like community solar are making renewable energy a viable option for more people than ever before. With the support of ongoing federal funding and progressive state legislation, solar energy is poised to continue its upward trajectory, providing affordable and sustainable power for millions more Americans.
For more details on solar energy trends and community solar programs, visit Solar Energy Industries Association or National Community Solar Partnership.