Source: American Census Survey, Public Use Microdata Sample (PUMS), 2021. Note: Solar Adoption here represents the proportion of units using solar out of total units, based on the available information from census. Analysis by Beacon Economics.
Highlight
- As of 2021, California held the distinction of being the second-highest state in the U.S. in terms of solar market share (0.8%), behind only Hawaii (4.01%). Although the number of households in Arizona represent only 20 percent of California's total, the solar units per capita rate in Arizona is comparable to that of California. Meanwhile, northern states such as Maryland and Utah have had a significant surge in demand for solar energy, with growth rates of nearly 1,632.7 and 1,177.9 percent, respectively, since 2012. These trends illustrate the continued expansion of the solar energy market across various regions of the country, with both populous and less-populous states demonstrating a growing interest in this sustainable and environmentally friendly energy source.
Challenge
- In contrast to previous years, California's solar adoption rate was stagnant in 2020 due to the pandemic. However, in 2021, the state saw a 15.5 percent yearly increase in solar adoption among households, which is slightly slower than the U.S. average and the rest of the country. This marks the second consecutive year that California's growth rate has been slower than that of the U.S. Conversely, despite having a similar solar incentive program as California, Florida has recorded the highest year-over-year growth rate of over 60 percent in solar adoption from 2020 to 2021. In California, on average, the avoided energy costs rates come out to about 25 percent of retail electricity rates during those same hours, meaning the value of net metering credits has decreased by about 75 percent under NEM 3.0.186 This is likely to discourage adoption of rooftop solar due to the reduced financial incentive.
186 EnergySage. NEM 3.0 in California: What you need to know. August 25, 2023. Accessed December 13,2023. Available at: https://www.energysage.com/blog/net-metering-3-0/
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