Installing solar panels and backup battery storage is one of the best ways to save money on electric bills and keep the lights on during outages, but Stanford scientists say better policies are needed to give more people access to clean, affordable energy.
What’s happening?
According to a study published in Nature Energy, Stanford researchers found that around 60% of U.S. households could reduce electricity costs by roughly 15% by investing in a solar and storage home system.
A residential solar setup would also help families ride out power outages — which are becoming more frequent due to an aging grid and extreme weather events — safely and comfortably, per a summary by Stanford University.
However, the team noted that households with higher energy burdens that experience more blackouts than normal and would consequently see the greatest benefits from a home solar system have the least access to energy upgrades.
“The solar-battery benefits often fail to align with the areas that need them most, like in certain high-outage-risk states where only one-fourth of households can get affordable backup power from solar-battery systems,” Arun Majumdar, Stanford Doerr School of Sustainability dean and co-author of the study, said in the report.
The authors explained that the inequitable distribution of solar energy in many areas is partially due to policymakers’ “knowledge gap” regarding how to increase adoption of rooftop solar and battery packs in high-risk locations.
Luckily, free tools provided by EnergySage make it easy for homeowners to access affordable solar panels, as they can compare quotes from qualified installers in their area.
Why are inadequate policies regarding electric bills concerning?
Electricity costs are climbing in many states due to infrastructure challenges and more extreme weather triggering blackouts. As a result, more people are considering investing in home solar and battery storage to save on bills and reduce the strain on the climate and grid.
Since many utilities offer solar buyback plans that credit homeowners for the excess energy they generate, it makes it even easier to save on energy costs.
However, utilities in some states, such as California, have switched to net billing tariffs rather than net metering policies, as it better incentivizes battery storage while addressing the financial burden on non-solar customers.
In states such as Iowa and Idaho, which still use net metering, and in disadvantaged communities, investing in a home battery system may not be feasible or offer the same benefits.
The study’s authors suggested that policymakers look into “incentive programs, rate approvals, and industry regulations” that could promote a more equitable energy landscape while increasing grid resilience.
“Economic incentives, financing mechanisms, and community-based deployment programs that target areas with high financial and reliability needs but low economic viability of solar-battery systems could help families that need such systems the most,” Tao Sun, a postdoctoral scholar at Stanford and the study’s lead author, said.
What can be done to reduce energy bills?
As the study explained, since solar panels generate free electricity and battery systems store that energy for later use at night or during high-cost peak hours, a home system can significantly reduce energy costs.
With EnergySage, homeowners can take advantage of up to $10,000 in savings on solar purchases and installations, making it a great service for all your solar needs.
And with its free mapping tool, you can see the average cost of a solar system and available tax incentives and rebates on a state-by-state basis, ensuring you benefit from all the savings you’re eligible for while getting the best price on home solar.
Pairing a rooftop solar system with an energy-efficient heat pump can further reduce your energy costs. Thanks to EnergySage’s free heat pump quote comparison tool, you can find an installer and the right heat pump for your budget, along with an affordable home solar setup, all in one place.
However, to claim the maximum amount of savings, ensure that installations are completed by the end of 2025, before the 30% federal tax credit for both heat pumps and solar panels expires.
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