A comprehensive new report from the Lawrence Berkeley National Laboratory (Berkeley Lab) sheds light on the evolving demographic and income patterns of US households adopting residential solar energy. Based on data from more than 4.1 million rooftop solar systems installed through 2023, which accounts for 87% of all US solar installations, the study provides crucial insights into the changing profile of solar adopters and highlights the expanding inclusivity of the sector.

Source:Berkeley Lab

A shift toward broader inclusivity

The report reveals that in 2023, the median income of households installing solar was $115,000 per year—substantially higher than the national median household income of $75,000. However, the gap between solar adopters and the general population is narrowing. The median income of solar adopters was only 7% higher than that of all owner-occupied households in the same states. This marks a notable shift toward a more diverse group of income levels participating in solar adoption.

One of the most significant findings is that nearly half (49%) of solar adopters in 2023 earned below 120% of their area's median income (AMI), a threshold often used to define "low- and moderate-income" (LMI) households. Additionally, 26% of adopters fell below 80% of AMI, which is commonly used to define "low-income" households. These figures suggest that the push for solar adoption is beginning to reach beyond high-income earners and extend to a broader cross-section of American society.

Source:Berkeley Lab

Solar adoption is becoming more accessible

Historically, the solar market has been skewed toward wealthier households, but the report shows a steady trend of solar adoption shifting toward less affluent demographics. In fact, the median income of solar adopters has decreased from $141,000 for those who installed systems in 2010 to $115,000 in 2023. This change is largely driven by the decreasing cost of solar panels, the expansion of financing options, and an increase in low- and moderate-income (LMI) programs that help make solar power more affordable for households at all income levels.

Source:Berkeley Lab

A deeper look at the characteristics of solar adopters shows that those in the lowest income bracket (<$50k) tended to install smaller systems (6.4 kW) in comparison to wealthier households, who typically installed larger systems (8.0 kW). Wealthier households were also more likely to choose third-party ownership and include battery storage, which can add to the system's cost. In contrast, lower-income households are more likely to finance their systems through third-party ownership models, which help reduce upfront costs.

Regional variations and policy implications

While solar adopters are increasingly drawn from a wider array of income groups, the extent of these changes varies significantly by state. The report finds that in some states, solar-adopter incomes are close to or even below the median income for all owner-occupied households, which suggests the growing influence of local policies and solar incentives in encouraging broader participation in the solar market.

Notably, 10 states saw solar-adopter incomes equal to or lower than the median income for all owner-occupied households, reflecting how regional differences—such as state-level solar incentives, cost of living, and income inequality—can influence who adopts solar power. In contrast, wealthier states with robust solar policies, like California, tend to see a higher skew toward higher-income solar adopters.

Demographic trends and solar’s expanding reach

Demographically, solar adopters are more likely to have higher education levels, live in rural areas, and own single-family homes compared to the general population. Additionally, solar adopters tend to be middle-aged, identify as non-Hispanic white, and are often employed in business or financial sectors. These characteristics reflect the social and economic profile of early adopters of solar technology, but as the market matures, the diversity of adopters is steadily increasing.

Looking ahead: Broader adoption, ongoing challenges

The findings from Berkeley Lab’s report suggest that while solar adoption is indeed becoming more inclusive, there is still work to be done to ensure that low- and moderate-income households can fully benefit from this technology. Targeted policy interventions and incentives for these groups could further drive the adoption of solar energy, particularly in underserved communities.

The residential solar market is broadening and deepening, with a growing share of adopters from diverse income brackets. As solar energy becomes more affordable, and with continued policy support, it has the potential to be a truly inclusive energy solution for all Americans, regardless of income or location.