Some U.S. cities are pricing residents out of rooftop solar through slow, complex permitting processes that can add up to $7,000 to the cost of installing residential systems, a new report from Environment America Research & Policy Center and Frontier Group found.
Though residential solar can reduce electricity bills by more than 80%, “the savings of rooftop solar are out of reach for many because of costly red tape,” Nick Josefowitz, founder and chief executive of nonprofit advocacy group Permit Power, said in a statement.
City-level decisions often determine whether installing solar is fast and affordable or slow and expensive — and installers are responding accordingly. Many avoid jurisdictions with slow or unpredictable permitting, according to National Renewable Energy Laboratory survey data.
Local governments can control several of the friction points that directly affect solar project timelines and costs, including permitting and review complexity and inspection bottlenecks, the Solar Permitting Scorecard states.
Cities can lower costs and increase solar adoption using seven primary levers.
- Allow automated or instant permitting for standard residential systems.
- Limit projects to a single inspection or offer remote inspections.
- Standardize building codes and requirements to align with state guidance.
- Reduce or waive permitting fees.
- Remove HOAs and aesthetic factors from the project review process.
- Allow third-party ownership models to expand access.
- Streamline local utility interconnection policies and ensure consumers are paid for energy they provide to the grid.
The Solar Permitting Scorecard graded every U.S. state on whether its permitting and inspection policies help streamline or stall residential solar installations. California and Texas received Bs, New Jersey and Colorado received Cs, and all other states were given Ds or Fs. California and New Jersey have passed legislation that requires local governments to offer instant permits for home solar and battery systems, according to the report.
“This report makes it clear: cutting solar permitting red tape is a low-cost way to help families lower their electricity bills,” New Jersey Sen. John McKeon and State Assemblyman Robert Karabinchak said in a joint statement. “Through unanimous bipartisan legislative action, New Jersey passed practical reforms that save time and money for homeowners, installers, and local governments. This is one of the most immediate, low-cost steps states can take to deliver real ratepayer relief while strengthening the grid.”
“This scorecard highlights that too many states are still stuck in slow, outdated processes that raise costs for families,” California State Sen. Scott Wiener said in a statement. “California is leading on implementation, and we should continue to expand modern permitting and inspection practices so homeowners can cut their bills and strengthen reliability.”
