Solar Companies Address Financial Barriers For Low-Income Households Wanting Solar

A nonprofit organization working to make solar more accessible and affordable across the United States, Vote Solar,  released a report providing a roadmap for directing financial barriers to solar that are currently faced by up to 78 million low-income or low-credit score American families and businesses. 

The Inclusive Solar Finance Framework statement, which was made for Vote Solar by Sustainable Capital Advisors, identifies policy- and market-based financial resolutions for increasing solar options for this significant and underserved segment of U.S. energy consumers. Unlocking entrance to affordable solar will give more families a way to maintain their energy bills, reduce harmful pollution, and support more local jobs in America’s clean power economy.

“While solar is helping families nationwide save money and take control of their energy bills, those economic benefits are still out of reach for many of the low-income and low-credit households that stand to gain the most from lower and stable bills,” stated Melanie Santiago-Mosier, program manager of access & equity at Vote Solar. “As our clean energy economy continues to expand at a record pace, it’s our responsibility to strive for growth that is inclusive and gives everyone the opportunity to participate. We urge the solar industry, policymakers, finance leaders, community organizations and other stakeholders to explore and commit to financial solutions that bring clean energy access to all.”

Advisors Of Solar

“The inability for our low-income and low credit score neighbors to access solar energy endangers the ability of the low-carbon revolution to deliver the environmental and societal benefits it promises,” stated Trenton Allen, Managing Director and CEO of Sustainable Capital Advisors. “Those same households are also paying into state and federal programs that are helping spur the transition to clean energy through their energy bills, yet face inequitable access to the direct benefits of those programs. We aim for this report to serve as foundation to progress and provide actionable steps to rectify the barriers to solar faced by a significant segment of Americans.”

Directed by low prices and high consumer demand, consumer investment in solar power has grown significantly over the past decade. However, many purchasers still face barriers, such as low credit scores, lack of tax appetite, or lack of upfront capital, that prevent them from going solar through conventional finance mechanisms. The Inclusive Solar Finance Framework report identifies these financial barriers as well as special solutions that policymakers, public agencies, and financial institutions can undertake to eliminate or minimize those limitations.

Market Conditions

Explications incorporated in the report include refundable tax credits, reprogramming existing energy funds, credit enhancement, alternative credit scoring, and community solar. Market conditions and fundamental state policies like net metering are also important to ensure the efficacy of the proposed finance solutions. Another key finding is that inclusive solar finance answers must also be structured to meet the unique needs of each customer and community, which requires processes and outcomes that prioritize collaboration, transparency, consumer protections, and pedagogy.

In making the Inclusive Solar Finance Framework, Sustainable Capital Advisors analyzed publicly available information and conducted approximately 60 hours of discussions with thought leaders and expert practitioners representing the entire solar ecosystem including developers, installers, financiers, impact investors, foundations, policymakers, housing agencies, utilities, and customers.

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