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At least 19 records

Impacts of non-residential solar on residential adoption decisions

Household decisions to adopt rooftop solar photovoltaics are partly driven by social influence. Previous research on solar adoption influence has focused on influence among residential peers. Here, we expand the framework of solar adoption influence by exploring the influence of non-residential installations on residential adoption decisions. We use staggered differences-in-differences to estimate non-residential influence effects using a large data sample of residential adoptions. We also critically evaluate prevailing frameworks for solar adoption influence. We find that non-residential installations are associated with accelerated residential adoption rates, on the order of 0.4 additional residential adoptions per quarter per non-residential installation. We show that non-residential systems exert a continuous, long-term influence on residential adoption decisions. We explore separate results and influence mechanisms for solar installed on commercial buildings, government buildings, and houses of worship. The results suggest that non-residential solar adopters could serve as partners in policies to “seed” residential adoption in underserved communities.

14 SOLAR ENERGY↗

Exploring the potential of non-residential solar to tackle energy injustice

Despite the observed disparities in US residential solar deployment, there is limited insight into whether these disparities exist for the non-residential sector. Here we use DeepSolar, a comprehensive photovoltaic database constructed with satellite imagery, to assess solar deployment equity based on the US Justice40’s disadvantaged community measure. We find that disadvantaged communities have less non-residential solar (–38%), but this disparity is notably higher for residential solar (–67%). Across-state variations are consistent for residential solar (–81% to –49%) yet highly heterogeneous for non-residential solar (–66% to +34%). Using scenarios to explore the potential for microgrids powered by solar on building rooftops larger than 1,000 square metres, we estimate that 63% of disadvantaged communities could meet at least 20% of annual residential electricity demand. Furthermore, our research argues for a new focus on non-residential solar as a way to strengthen resilience and accelerate local deployment of clean energy resources to promote energy justice.

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↗

One Year In: Tracking the Impacts of NEM 3.0 on California’s Residential Solar Market

On December 15, 2022, the California Public Utilities Commission passed an overhaul of the net metering program for the state’s investor-owned utilities. The changes replaced the long-standing net energy metering (NEM) tariffs with a net billing tariff (NBT) structure—colloquially known as “NEM 3.0”—which significantly reduces the compensation for behind-the-meter solar photovoltaic (PV) systems. The NEM tariffs remained open for new interconnection applications until April 15, 2023, but after that date, all new interconnection applications were submitted under NBT. Now, one year later, we have an opportunity to evaluate how the California solar market has evolved under this new compensation regime. As a precursor to its annual Tracking the Sun report, Berkeley Lab has released a short technical brief describing key trends in the California residential solar market since the roll-out of the new NBT structure. The purpose of this analysis is to provide empirical insights into how the market has evolved over the past year, confirming some expectations while also revealing several striking surprises.

14 SOLAR ENERGY↗

The effect of residential solar on energy insecurity among low- to moderate-income households

Each year, millions of Americans experience energy insecurity, or the inability to afford enough energy to meet their basic needs. Here, this study evaluates whether residential rooftop solar can serve as a preventative solution to energy insecurity among low- to moderate-income households. Using a national, matched sample of solar and non-solar households based on detailed and address-specific data, we find that solar leads to large, robust and salient reductions in five indicators of energy insecurity. Moreover, the benefits of solar ‘spill over’ to improve a household’s ability to pay other energy bills. The results suggest that rooftop solar may be an effective tool for policymakers who seek to reduce energy insecurity.

14 SOLAR ENERGY↗

Machine learning reduces soft costs for residential solar photovoltaics

Further deployment of rooftop solar photovoltaics (PV) hinges on the reduction of soft (non-hardware) costs—now larger and more resistant to reductions than hardware costs. The largest portion of these soft costs is the expenses solar companies incur to acquire new customers. In this study, we demonstrate the value of a shift from significance-based methodologies to prediction-oriented models to better identify PV adopters and reduce soft costs. We employ machine learning to predict PV adopters and non-adopters, and compare its prediction performance with logistic regression, the dominant significance-based method in technology adoption studies. Our results show that machine learning substantially enhances adoption prediction performance: The true positive rate of predicting adopters increased from 66 to 87%, and the true negative rate of predicting non-adopters increased from 75 to 88%. We attribute the enhanced performance to complex variable interactions and nonlinear effects incorporated by machine learning. With more accurate predictions, machine learning is able to reduce customer acquisition costs by 15% ($0.07/Watt) and identify new market opportunities for solar companies to expand and diversify their customer bases. Our research methods and findings provide broader implications for the adoption of similar clean energy technologies and related policy challenges such as market growth and energy inequality.

14 SOLAR ENERGY↗

The resilience value of residential solar + storage systems in the continental U.S.

Abstract Behind the meter rooftop solar plus storage (PVESS) has the potential to benefit the hosting customers by providing affordability, environmental, and reliability and resilience value. Whereas the bill reduction and environmental benefits of PVESS are well studied, its monetary resilience benefits are less understood. The increasing trend of power interruptions driven by extreme weather events heightens the need to understand these benefits. This study leverages various publicly available datasets to perform a cost benefit analysis of adding to determine the resilience value of PVESS for a typical single family home in each county in the continental U.S. We find that PVESS is very effective to technically mitigate interruptions across the country. However, the monetary benefits in the base case only cover about 14% of battery costs, with no county exceeding 60%. This is somewhat expected, given that PVESS provide other monetary benefits that are not part of this analysis. Through sensitivities, we find that higher frequency of extreme weather events roughly triples the resilience value of PVESS and that higher values of lost load double the same metric. Our sensitivity analysis shows that the benefit cost ratio of PVESS for customers living in areas with higher-than-average frequency of long duration interruptions and value of lost load is already above one even without considering other value streams. We conclude with recommendations that regulators and utilities could implement to enable customers to calculate and capture the resilience value of PVESS more efficiently.

Baik, Sunhee↗

Consumer Benefits of Clean Energy: The resilience value of residential solar + storage systems in the continental U.S.

Meeting national and state decarbonization goals requires a transition to clean energy technologies. Energy efficiency, demand flexibility, renewable energy and storage can reduce consumers’ electricity bills, lower total electricity system costs, and provide health and resilience benefits. Berkeley Lab developed a series of briefs that explore these consumer benefits of a clean energy transition. Clean energy resources that are located behind the meter have the potential to benefit the hosting customers by providing affordability, environmental, and reliability and resilience value. Solar plus storage systems (PVESS) are clean energy resources that can supply backup power without requiring fuel resupply or increasing local emissions. This report examines the regional value of PVESS for resilience by calculating a benefit-cost ratio (BCR) that considers the annual resiliency benefits of PVESS and the annualized cost of the investment. In addition, we estimate the expected technical mitigation potential of PVESS systems at the county-level to these expected events, and characterize the customer interruption costs by determining the value of lost load at the state level.

14 SOLAR ENERGY↗

Solvari SR, Simplifying Residential Solar to 1 SKU, with Extended Testing

Accelerated weathering and material compatibility testing for polymeric and asphaltic materials. NLR will be testing the durability of the polymeric materials proposed for use in the supporting structures designed by TESCI solar. This will include the bare materials and coupons attached to asphalt shingles. The exposure will be in damp heat and separately heat, humidity and UV light, all followed by mechanical evaluation. Modification 1 is an extension of the first round of testing with both a continuation of some of the same testing and addition of new testing methods and materials. The testing of materials in the condition of A3 looking at mechanical durability will be continued looking at the materials used in the mounting brackets. We will be adding in testing of the silicone adhesive to the module and of the module itself. For the mounting brackets, testing will also be conducted at multiple temperatures and humidity levels to allow for extrapolation to the field.

14 SOLAR ENERGY↗

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.

14 SOLAR ENERGY↗

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↗

Bishop Paiute Single Family Solar Home Project: Phase 4 (Final Technical Report)

The Bishop Paiute Tribe is committed to energy efficiency, renewable energy, and environmental protection and has a vision to install solar energy systems on all buildings on the Reservation where technically feasible. Through completion of the Bishop Paiute Tribe Residential Solar Program – Phase 4, Bishop Paiute Tribe continued its successful model partnering with non-profit solar installer GRID Alternatives to advance its vision and build energy self-sufficiency on the Bishop Paiute Reservation. The Bishop Paiute Tribe Residential Solar Program – Phase IV deployed 67 kW-AC of new clean, renewable energy through grid-tied, net-metered rooftop solar electric systems installed on a total of 20 (one more than the planned 19) existing owner-occupied, single-family homes for low-income families on the Reservation. This represents nearly 14% of the Reservation’s total “unsolarized” homes. These systems were provided at no cost to the homeowners, who will also receive energy efficiency education to further reduce energy consumption and lower electric bills. GRID led a solar installation for three (3) of the homes where Tribal/community members, were given an opportunity in participating in on-the-roof trainings to gain new skills while installing solar for their low-income community members. Subcontractors through GRID Sub Contractor Partnership Program (GRID SPP) led solar installations for seventeen (17) of the homes. Each installation provided paid employment for a solar trainee trainees hired by the SPP subcontractors as entry level solar installers. It is estimated that the installed 67 kW-AC of solar will produce at least 120,000 kWh/year, displacing at least 30-75% of the 20 homes’ total electricity use for a combined system lifetime electricity cost savings for the low-income homeowners of about $\$$500,000. It is further estimated that the installed renewable energy systems installed will prevent greenhouse gases by about 1,000 tons, equivalent to planting approximately 25,000 trees. Following the successful completed installations, it is expected that the Reservation and surrounding communities will benefit from improved air quality via reduced wood stove use for heating. Cumulatively with other initiatives, the project will result in nearly 40% of the Reservation’s solarizable homes being solarized. Overall, the triple impact of the phase 4 of the Bishop Paiute Tribe Residential Solar Program – Phase 4 is: 1) affordable energy for low-income families; 2) on-site clean energy production, 3) hands on training and paid solar installation work for local tribal/community workers. These impacts will support and grow the Tribe’s energy, economic, environmental, and social self-sufficiency and sovereignty amongst the neediest on the Reservation.

14 SOLAR ENERGY↗

Nova Analysis: Holistically Valuing the Contributions of Residential Efficiency, Solar and Storage

Policies to address climate change and grid modernization, in combination with cost reductions and technological advancements in energy efficiency (EE) and distributed energy resources (DER), are driving rapid deployment of building electrification and energy efficiency retrofits, rooftop solar photovoltaics (PV), smart thermostats, smart water heaters, and battery energy storage. In residential buildings, there are multiple stakeholders (occupant, utility, aggregator, society at large) that are each focused on different value streams. This project uses a suite of metrics intended to all of these value streams to try to holistically analyze the benefits that come from solar, storage, and energy efficiency. To demonstrate the value of these metrics, a semi annual study was performed simulating hundreds of homes across the U.S. under several different upgrade scenarios.

14 SOLAR ENERGY↗

Backup power or bill savings? How electricity tariffs impact residential solar-plus-storage usage in the United States

Adoption of paired solar-plus-storage systems has accelerated in recent years, driven by both the demand for backup power and a desire to manage utility bills. Tradeoffs between those two uses can arise through the reserve setting on the battery storage system, which serves to maintain a minimum state of charge in case of a power interruption. Our paper applies an economic framework to evaluate this tradeoff in terms of changes in bill savings and customer reliability value across reserve levels, considering how those tradeoffs depend on the underlying electricity rate structure and levels. The analysis is based on a representative set of load profiles, solar profiles, tariff designs, and stochastic power interruption events across ten different regions in the United States. We find that the opportunity cost of holding storage capacity in reserve, in terms of foregone bill reductions, outweighs any gains in reliability value from mitigated power interruptions in the majority of customer situations. Higher storage reserve levels increase total customer value only in specific circumstances, such as for customers with inferior reliability (10x average interruptions), with a very high value of lost load ($50/kWh), and with tariff or interconnection rules that disallow grid charging. However, even this result is dampened when considering tariff designs with higher price differentials that increase the opportunity cost of holding storage in reserve (e.g. import/export or time-of-use rates). Allowing grid charging in tariffs essentially eliminates the necessity to hold any storage in reserve in all sensitivity cases explored.

Electric resilience↗

Bill Savings vs. Backup Power: Evaluating operational tradeoffs for home solar+storage systems [Slides]

Adoption of residential solar photovoltaic+energy storage systems (PVESS) is driven by both bill savings opportunities and customer demand for backup power. Prior work by this team (Gorman et al., 2022; Gorman et al., 2023) explored PVESS backup power capabilities during long-duration power interruptions (e.g., due to severe weather events), when customers are assumed to be able to anticipate the event and charge their batteries in advance. In many cases, however, power interruptions are unpredictable (and often relatively short); for those types of events, a customer will typically set its battery to maintain some minimum capacity in reserve in case of an interruption, which reduces the capacity available for managing utility bills. This study evaluates this operational tradeoff to help customers and installers configure backup reserve settings, and to inform decision-making more generally about the customer value of backup power services compared to utility bill savings. This study utilizes Berkeley Lab’s PRESTO tool to produce stochastic simulations of (predominantly short-duration) power interruption events, and builds on an earlier case-study demonstrating PVESS backup performance during short-duration interruptions (Baik et al., 2023).

14 SOLAR ENERGY↗

Implications of Battery Storage for Solar Net-Metering Reforms

Compensation structures for residential solar PV are evolving toward a model that incentivizes the use of battery storage to maximize solar self-consumption. Using metered data from 1,800 residential customers across six U.S. utilities, we show that batteries operated solely in this manner often provide no grid value, due to misalignment with market prices. Incentivizing customers to discharge storage in response to market prices, particularly on infrequent peak load days would greatly enhance storage dispatch value. However, doing so requires consideration of local distribution network impacts. We illustrate a net billing design that yields a storage dispatch value equal to 50-70% of its maximum potential market value, without materially degrading solar self-consumption levels or increasing local grid stress.

Barbose, Galen↗

Rooftop Solar Deployment, Potential Electricity Rate Impacts, and the Timing of Revisions to State Net Metering Policy

Most U.S. states require utilities to credit residential solar photovoltaic (PV) output at the retail electricity rate, a structure known as net metering. However, 12 states have replaced net metering with alternative rate structures that reduce PV adopter bill savings. The share of households living in states that require net metering fell from around 84% in 2014 to around 57% by the end of 2023. Proponents of net metering revisions have argued that net metering can affect the electricity rates of customers without PV. This report analyzes the relationships between state PV deployment levels, potential electricity rate impacts on PV nonadopters, and the timing of revisions to net metering policy.

14 SOLAR ENERGY↗