Vote Solar releases roadmap for addressing financial barriers to solar by low-income households

A new report released today by Vote Solar, a nonprofit organization working to make solar more accessible and affordable across the United States, provides a roadmap for addressing financial barriers to solar that are currently faced by up to 78 million low-income or low-credit score American households. The Inclusive Solar Finance Framework report, which was prepared for Vote Solar by Sustainable Capital Advisors, identifies policy- and market-based financial solutions for expanding solar options for this significant and underserved segment of U.S. energy consumers. Unlocking access to affordable solar will give more families a way to manage their energy bills, reduce harmful pollution, and support more local jobs in America’s clean energy 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,” said Melanie Santiago-Mosier, program director of access & equity at Vote Solar. “As our clean energy economy continues to expand at 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.”

“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,” said 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.”

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

Solutions covered 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 critical to ensuring the efficacy of the proposed finance solutions. Another key finding is that inclusive solar finance solutions 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 education.

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

News item from Vote Solar