Insights: Homeowner Data
The next piece of the solar market puzzle is the homeowners — the actual people choosing to get panels installed on their roof. When we refer to “homeowners” in this section, it refers to homeowners who indicated that they already have panels or are interested in installing them.
The Electrified Home
We looked at how homeowners are taking advantage of all the benefits offered through the IRA. While 17% of respondents had solar, interestingly, 22% had heat pumps, and 15% had an electric vehicle (EV). Given that 10% of homeowners indicated they wanted to electrify their home before considering solar, our findings point to some homeowners viewing heat pumps as a first step to fully reaping the benefits of solar.
Additionally, 10% of homeowners had battery storage, which we expect to increase in the future as net metering policies are examined across the country, electric rates continue to rise, and consumers seek energy independence and freedom from policy and utility changes, as well as grid instability.
Of the 1,000 survey respondents who expressed interest in solar
already have solar
have heat pumps
have an electric vehicle
have battery storage
Overall, 37% of homeowners felt solar panels are more valuable when paired with whole-home electrification. This matters for professionals, as 38% of respondents felt it was important to work with a professional who can help with whole-home efficiency.
of respondents felt it was important to work with a professional who can help with whole-home efficiency
At the same time, 37% of homeowners said electrifying their home before going solar is too costly.
It doesn't come as a surprise that the most affordable energy efficiency upgrades were the most commonly adopted among homeowners. This presents a real opportunity for professionals to educate homeowners on the most cost-effective upgrades to make, and to extend their offerings to other home-electrification services.
Top 3 hesitations for going solar by respondents interested in solar
- High interest rates
- Lack of efficiency during winter months
- Maintenance required to go solar
Homeowners: Stuck at the Interest Stage
More than half of homeowners (51%) said they believe solar is a good investment. However, a whopping 75% of homeowners that do not have solar (but are interested) said overall system and installation costs are a big concern. Of these respondents, 54% said specifically that interest rates are too high.
Notably, 15% of homeowners said they were paying for their PV system through a leasing program. In the current high-interest rate environment, we anticipate this percentage will increase as demand for leasing goes up. Education around third-party ownership could open doors for homeowners and installers to move out of the “interest stage.”
Interestingly, there are generational differences in how the cost of solar panels is viewed — while only 59% of homeowners under 30 years old claimed overall costs are a concern, 76% of respondents over 30 were concerned about costs. When asked how they would pay for a solar system, most respondents plan to save up and avoid current interest rates.
Opportunities to Educate the Homeowner
Homeowners hold many misconceptions about solar panels, incentives, and energy in general that are potential barriers to adoption. This means it’s up to the solar community to help educate homeowners and meet them where they are.
Just 16% of homeowners are familiar with net energy metering, likely because changes to these rules haven’t yet affected them if they haven’t gone solar. As net metering and rate design structures continue to change nationwide, it's imperative to educate homeowners on what's going on in their market.
Nearly 30% of homeowners are hesitant to adopt solar panels because they don’t know if their home gets enough sun — an easy question to address. With technology like LIDAR-based shade analysis, solar professionals can easily show homeowners their solar potential and work with them to make the best choice for their home.
A little more than half (51%) of homeowners are familiar with the term “Inflation Reduction Act.” Yet, only 5% of respondents said they were motivated to purchase solar due to tax incentives. This shows that much more can be done to educate them on its many benefits.
Of the 1,000 survey respondents who expressed interest in solar
were familiar with net energy metering
were familiar with the term “Inflation Reduction Act”
Homeowner Views on Climate Change and the Grid
We found that 44% of homeowners think the federal government isn’t doing enough to combat the effects of climate change, up from 37% the previous year.
At the same time, while 49% of respondents didn’t believe renewable energy would reach its full potential in 2023, only 37% felt the same way in 2024. Trust in the grid also grew compared to the previous year. Across the board, homeowners were less concerned about the power grid’s vulnerability to cyber attacks (46% concerned in 2023, 29% in 2024) and its reliability due to its age (39% to 25%). Additionally, 33% of homeowners in 2024 felt the power grid is becoming less reliable due to extreme weather compared to 37% in 2023.
↑ 5.3%
average residential retail price of electricity increase in 2023
↑ 30%
residential retail price of electricity increase since 2013
That being said, this could be due to fewer noteworthy attacks or outages covered by the media in 2023. Some data backs this theory up. In 2022, the Department of Energy reported 390 "grid disturbances" but in 2023 it was only 345.
Additionally, fewer homeowners were worried that their utility bills will continue to rise (62% in 2023, 58% this year), despite energy inflation outpacing overall inflation.
But those homeowners who aren’t worried about an increase in energy costs are in for a surprise. According to the U.S. Energy Information Administration, the average residential retail price of electricity rose 5.3% in 2023 alone — higher than the rate of inflation — and over 30% since 2013.
This presents a real opportunity for solar professionals to educate homeowners who hold these views. Remember, homeowners aren’t riding the solar coaster like solar professionals; they don’t know everything that’s going on. And, electrification is a massive undertaking, so there are many implications that require consultation and education — including tax incentives, solar potential, utility rate design changes, and more. These are all perfect openings to educate homeowners, show them what solar professionals know, and demonstrate how solar can work for their specific needs.
Building Trust
An area that clearly needs to be addressed by solar companies is that of consumer trust. In 2023, 22% of homeowners said they were unable to find a trustworthy solar company. In 2024, the numbers doubled: 44% of respondents said it is hard to determine which solar companies are trustworthy.
This is a negative mark for the industry and there needs to be a focus on improving solar's collective reputation, both via homeowner education and by upholding best practices for sales.
But how? Here's what homeowners identified as most helpful when they're first exploring if solar is right for them:
- 26% An on-site appointment with a solar expert to walk through the best system and potential savings
- 20% A digital tool that lets them see different system configurations and savings options specifically for their house
So, the opportunities are there for solar installers to build that trust and convert those interested in solar to solar customers.
Q1 2023
of respondents interested in solar said they were unable to find a trustworthy solar company
Q1 2024
of respondents interested in solar said it is hard to determine which solar companies are trustworthy