Solar energy has seen rapid growth over the last several years. In 2021, 36% of new electricity generating capacity came from solar installations. And in 2022, the estimated net generation from total solar generation facilities reached over 205 TWh.
While these are significant milestones for solar and sustainability initiatives in general, the fact remains that many homeowners are reluctant to adopt solar energy, in large part due to perceived cost barriers. Because of this, residential solar customers remain a minority (roughly 3.2 million homes, mostly located in the West), even in states with ample potential for solar energy generation. This is particularly true of historically underserved communities, who often have an interest in switching to solar, but may lack the resources to do so.
Though the commonplace system of financing solar panel systems can exclude many, Thomas Neyhart, Founder of PosiGen is determined to change this by making solar energy more affordable and accessible than ever before.
The Cost of Solar Energy
For many homeowners, the upfront expenses associated with installing solar panels can seem like an insurmountable barrier. A report from Pew Research reveals that on average, installing a residential solar system costs $16,870 to $23,170 — and that’s after accounting for the benefits offered by the federal solar tax credit, which currently provides a tax credit for 30% of solar installation costs.
Many families simply don’t have that much money available, or the ability to qualify for financing to install solar panels. Despite this, it’s estimated that low to medium income households hold 47% of the technical potential for rooftop solar installations, with saving money being the primary motivating factor to have a solar installation performed in the first place.
For families who can’t afford the high upfront costs, however, solar energy can feel like a money-saving solution that will remain out of reach. Neyhart saw similar challenges in the wake of Hurricane Katrina, when a variety of rebuilding programs were made available to local residents, but the programs themselves were largely only accessible to wealthier households — leaving underserved communities at an even greater disadvantage than before.
“There is currently a great economical divide in underserved communities and households in America,” says Neyhart. “Nowhere is that more evident than the utility burden, which takes up a disproportional amount of working-class families’ take-home pay.”
With such barriers in mind, Neyhart and his team have focused on finding alternative solutions to ensure that solar is accessible to all communities.
The Importance of Making Solar Energy Affordable and Accessible
For PosiGen, making solar energy more affordable serves four key purposes: helping the planet, helping people who might otherwise struggle with rising energy costs, supporting growth in underserved communities and providing job opportunities in those areas.
The financial benefits of switching to solar energy can be especially powerful for residential consumers, particularly in a time when the cost of other energy sources has increased dramatically. Nationwide, residential electricity prices increased by a record 10.7% in 2022, followed by a 4.2% increase in 2023. According to Choose Energy, states such as California, Idaho and Maine experienced rate increases of over 15% in 2023.
Solar’s environmental impact is another benefit that tends to come to mind for most consumers, and for good reason. Rooftop solar, in particular, can present a big win for the environment with significantly lower lifecycle carbon emissions when compared to natural gas and coal, without the risk of land degradation associated with utility-scale solar power facilities.
Long-term, solar energy is clearly a worthwhile investment that can protect consumers from ever-increasing utility expenses. Of course, if families feel they are unable to afford solar in the first place, they miss out on these potential benefits — which is where PosiGen’s approach to solar energy comes in.
How PosiGen Is Making Solar More Affordable
To achieve his mission of making solar more affordable, Neyhart and PosiGen offer a 25-year leasing program that doesn’t require any upfront expenses for the homeowners. Nor does it require a minimum credit score or income requirement. Most notably, PosiGen will only sell a solar lease to a potential customer if they determine that the household would be able to lower its monthly energy costs within the first year of installation.
PosiGen handles all aspects of the installation process for residential consumers, including site surveying and system design, navigating the permit and approval process, and installing, inspecting and activating the solar panel system. Ongoing monitoring and maintenance are included for the entire lifetime of the solar lease, which is billed monthly.
By making solar energy more affordable, particularly for underserved communities, Neyhart hopes to change the narrative surrounding renewable energy and help more people take advantage of this sustainable energy solution.
Neyhart says, “PosiGen was founded on the belief that all families should be treated fairly, and that starts with giving those families in most need access to solar and energy efficiency to put money back in their budgets and help them achieve energy independence.”
The potential impact of such solar installations goes beyond the direct savings enjoyed by the family that gets rooftop solar. The savings derived from lowering monthly electricity bills can then go toward other needs. Quite often, the funds are used with businesses in the local community, helping to spur economic growth for the entire area.
PosiGen also makes an active effort to provide job opportunities to the communities it operates in, leading to additional economic growth opportunities. A single rooftop solar installation can ultimately have a much broader impact beyond the household that installs it.
As this example reveals, when implemented properly, solar energy can do even more than improve sustainability efforts. It can have a very direct impact on families and their communities, helping them save money and foster meaningful growth in their local community.