Top 5 States for Residential Solar Panel Installations

Residential solar panel installation

Solar power is picking up across the United States with more and more people installing solar panels for energy independence and to reduce their carbon footprint.

Although residents of any state can find bargains and incentives on solar arrays, the top 5 states for residential solar panel installations (as of the date of this post) include:

• California
• Arizona
• New Jersey
• Colorado
• Pennsylvania

According to a SEIA/GTM Research report, these five states offered very favorable markets for residential solar installations in 2010.  As a result, they represent the greatest megawatts of solar electricity capacity installed.

The State of California boasted nearly 128 MW of capacity from residential solar panel installations in 2010.  The remaining states on the top 5 list had a range of 14-28 MW of installed solar power that year.

So what were the driving forces that encouraged so many people in these states to install residential solar panels?

First, homeowners are able to go solar without the upfront costs with a solar panel lease – where the system is owned and maintained by a solar manufacturer – or a solar power purchase agreement (PPA), in which a homeowner contracts to buy solar power at a competitive fixed rate over for 10-20 years.

These financing options are provided by companies including, but not limited to Sungevity, SolarCity, SunRun and SunPower. In 2010, as many as 30% or more of residential solar systems were installed with a lease or PPA in states where these financing options were readily available.

Second, these states offered generous, aggressive incentives to install residential solar panels.  Investment in solar by homeowners is encouraged with rebates, tax incentives and SREC programs. Each of the top five states provides at least one of these options.

Bottom line, the top 5 states for residential solar panel installations have programs and incentives that reduce (or eliminate) the upfront cost of switching to solar power.  Over time, homeowners save significant money in utility bills and gain security against rising utility costs.  Of course, solar power is cleaner than fossil-fuel based electricity.

Hopefully, more states will join these five in increasing solar capacity in 2012.

Tags: home solar power, residential solar, residential solar panel, solar panel installation, top 5 states for residential solar