You don’t have to be rich to go solar: Data debunks the clean energy wealth myth

It’s time to debunk the myth that solar panels are a luxury item only the rich can afford. While it’s true that going solar isn’t cheap, it isn’t unaffordable, either—and the data backs up this fact.

A 2024 Lawrence Berkeley National Laboratory (LBNL) study that analyzed over 4 million solar installations found that most people installing solar panels are actually considered low- to moderate-income households.

Solar energy really is for everyone, and it’s becoming more affordable every year. Let’s take a look at the data.

Let’s start with one of the most eye-opening findings from the LBNL study: 49% of Americans who installed solar earned less than 120% of their area’s median income—a threshold commonly used to describe low-to-moderate income households. In this case, that stat means that nearly half of solar adopters were moderate-income—not high earners—and in many cases even earning less than the typical household in their area.

The report also found that 44% of households earned less than $100,000 annually, with most (30.5%) of them earning between $50,000 and $100,000. For context, the study found that the median income for all U.S. households during that time was $75,000.

Only 19% of homeowners who installed solar in 2023 earned above $200,000. Far from being dominated by the ultra-wealthy, solar adoption looks a lot like middle America. To date, around 5 million American homes have gone solar—no small number.

To be clear, most solar adopters do tend to earn higher-than-average incomes, but those salaries aren’t as high as you’d expect. The report found that the median income of solar adopters in 2023 was $115,000, which is about 53% higher than the national median of $75,000.

However, here’s the crucial context that changes the significance of that stat: Most people who go solar are homeowners, and homeowners typically earn more than renters. 

When you compare the income of solar adopters to the annual income of U.S. homeowners ($94,000), the income gap shrinks dramatically—it turns out that those who go solar only earn 23% more than the average U.S. homeowner.

There’s more: When you account for the fact that many of the most popular solar states are in higher-income states—like California—the income difference drops to just 7%. According to the study, the skew narrows to an average income of $115,000 for the solar adopter vs. $107,000 for non-solar homeowners in most high-solar markets.

One of the most encouraging trends from the LBNL data is how solar has steadily shifted away from being considered a luxury item over time. The median income of solar adopters dropped from $141,000 in 2010 to $115,000 in 2023—roughly an 18% drop. That’s a clear sign that solar is becoming more accessible to a greater number of Americans.

Several key factors are driving this trend:

• Falling solar costs: 10 years ago, a home solar installation cost $3.36 per watt (W) according to the National Renewable Energy Laboratory. That's 31% more than what we see on EnergySage right now at $2.56/W before incentives.

• Better financing options: Solar loans, leases, and power purchase agreements (PPAs) have eliminated the need for large upfront payments. The study found that lower-income households are nearly twice as likely to use third-party financing options like leases and PPAs (33% vs. 18%).

• Supportive government policies: The Inflation Reduction Act includes bonus tax credits for low-income solar installations, though the full benefit of these tax incentives is yet to be seen.

• Market expansion: Solar is "expanding” into states with generally lower income levels and "deepening" by reaching less affluent households within established markets, according to the data.

Here's something that might surprise you: In 10 states, solar adopters had incomes at or below the median compared to other homeowners in their state:

• Connecticut

• Idaho

• Kansas

• Massachusetts

• New Jersey

• Pennsylvania

• Rhode Island

• Texas

• Vermont

• Washington D.C.

These findings suggest that state-level policies, federal incentives, and market conditions may be more important than household income in driving solar adoption.

The data also shows encouraging progress in reaching disadvantaged communities. The share of solar installations in these areas doubled from 11% in 2010 to 22% in 2023, though these communities are still underrepresented relative to their share of the overall population.

While headlines about income inequality may get attention, the LBNL data reveals that the most significant barrier to solar adoption isn't wealth—it's housing. The report shows that 96% of solar installations are on owner-occupied homes, with 97% on single-family homes.

This highlights one of the very real challenges for solar equity: Renters can't make solar decisions for properties they don't own, and multi-family housing presents technical and regulatory hurdles that the industry is still trying to untangle. These are solvable problems—like community solar—but they require different approaches than simply making solar less expensive.

The data clearly shows that homeowners who install solar come from varying economic backgrounds—it’s not just high earners who invest in clean energy for their homes.. Many people who go solar are retirees on fixed-incomes and small business owners looking to save money on expensive electric bills. And solar does just that: The average EnergySage solar shopper breaks even on their investment in about 7 years, saving tens of thousands of dollars over the lifetime of their solar panels.

Solar isn't a luxury anymore. It's becoming what it was always meant to be—a practical way for everyday homeowners to save money while supporting a clean energy future.