2024 Residential Solar Market Outlook: Growing consumer interest faces off against efficiency concerns and misinformation.
These days, energy issues dominate headlines, and Americans are understandably concerned about power grid insecurities, rising energy costs, and climate change. As a result, they’re increasingly interested in how renewable energy sources, like solar, could help solve these pressing issues.
However, misinformation, evolving technology, and financial concerns deter many homeowners from harnessing solar energy. To accelerate rooftop solar adoption, the industry must understand the underlying attitudes, anxieties, and motivations driving this shift.
Considering this, we gathered extensive insights from more than 2,800 homeowners in the United States. Our goal was to better understand the average person's thoughts on the future of solar energy. The results of this research have uncovered essential trends and strategies, and those interested in expanding the use of solar energy should pay close attention."
Key Findings
As many as 4 million American households currently have solar panel systems, and most solar users in our study were highly satisfied.
Nearly half of eligible homeowners who were open to installing solar panels said their time frame for adoption would be within the next three years. This means an estimated 16 million households could install solar in the near future.
Notably, the upfront cost is the most significant deterrent to installing solar, but many people don’t understand the actual price for installation. Our respondents estimated solar installation could cost anywhere from $0 to $125,000, but the average cost today is actually around $25,000 before incentives or tax credits.
About a quarter of homeowners without solar said weather damage was a primary concern when considering solar installations. In reality, solar panels are designed to withstand high winds, rains, and extreme temperatures, and like the rest of the home, damages to panels can be covered by homeowners insurance.
Power reliability was a key barrier to adoption for 23 percent of homeowners without solar panels. However, solar panels increase energy access and diversify the sources of energy powering homes.