A recent analysis indicates that straightforward regulatory adjustments could grant millions of Americans, particularly renters and low-income households, access to affordable clean energy. The report highlights the potential of small, plug-in solar systems that connect to standard outlets. By adopting a legislative framework pioneered in Utah, states could empower a vast new market of consumers to reduce their electricity costs and improve grid stability, all without requiring government subsidies or tax incentives. This shift could make clean energy a practical option for up to 60 million people currently excluded from the solar market.
As households face mounting pressure from rising electricity costs, viable solutions are in high demand. While traditional rooftop solar installations provide relief for some homeowners, the vast majority of households—an estimated 70%—are effectively excluded due to prohibitive upfront costs, rental agreements, or unsuitable roof structures. Plug-in solar systems offer a practical alternative. Typically consisting of one or two solar panels, these units can be easily set up by residents on a balcony, deck, or in a yard. They are significantly less expensive than full rooftop arrays and can be integrated with batteries to supply power during electrical outages.
The main impediment to the widespread adoption of these systems across the United States is not technology but regulation. In 49 states, these small-scale systems are governed by the same burdensome and expensive interconnection rules created for large rooftop solar projects that are five to twenty times their size. These regulations often demand costly hardware to prevent electricity from flowing back to the grid or involve complex permitting processes that discourage both manufacturers and potential customers, effectively smothering the market before it can establish itself.
A legislative blueprint for overcoming these hurdles has already been successfully implemented in Utah. A bipartisan, budget-neutral bill, H.B. 340, established a new, simplified classification for solar systems under 1,200 watts. This reform exempts them from standard interconnection agreements while still enforcing clear safety standards, allowing residents to perform the installation themselves and send small amounts of excess energy back to the grid. The impact was immediate and profound, with the cost of plug-in systems in the state dropping by approximately 50% shortly after the law was enacted.
This approach aligns with successful initiatives in Europe, most notably in Germany, where “balcony solar” is now used by as many as four million households. The report projects that if five or more U.S. states were to implement reforms similar to Utah’s, it would create a market substantial enough to attract major manufacturers. The ensuing competition and economies of scale are forecast to lower the cost of plug-in solar to around $0.50 per watt, which would reduce the average payback period for consumers to approximately three years by 2032.
The practical impact of such policy changes was demonstrated in a recent California pilot program conducted by the nonprofit Bright Saver. The initiative confirmed significant interest from renters, seniors, and households on fixed incomes—demographics that have largely been bypassed by the clean energy transition. The program’s case studies revealed that under existing rules, the payback period for a small system can exceed seven years. With Utah-style legislation, however, the payback period for the same system would fall to less than two years. Based on these findings, the report concludes that with the right regulatory framework, 24 million American households could be utilizing plug-in solar by 2035.