A Global Look at Residential Solar Adoption Rates

RENON SCENT | COMMENTARY

Introduction

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The U.S. is the leading country in North America (Figure 1) when it comes to installed solar capacity.

Figure 1. This world map shows which countries have the most power generation from solar. The U.S. is the leading country in North America. Source: Tigo Energy

The cumulative residential solar installation capacity is about 22,151 megawatts (MW), and the total residential solar adoption rate is about 3%, assuming the average residential solar system size is 5 kilowatts (kW). 

But the U.S. is a large country, so let’s focus on some states to give you a better picture of the adoption rates by region. The table below (Figure 2) shows the percentage of solar homes in eight U.S. states, calculated by using data on the total number of houses from the 2020 U.S. Census and number of solar houses from a variety of sources.

Figure 2. Adoption rates of residential solar systems in various U.S. states. Courtesy: Tigo Energy

The variation in the residential adoption rate by state is due to multiple factors, including weather, incentives, utility rate plans, incidence of homes, and more.

For instance, Hawaii relies heavily on imported energy, which results in high electricity prices. Therefore, Hawaii has turned to solar to produce its own electricity at a much lower cost. 

On the other hand, one reason why Florida has lower residential adoption rates is due to the low electricity prices, which result in longer payback periods for homeowners. 

California, on the other hand, has a mix of excellent solar potential, high electricity rates, and incentives, which enable shorter payback periods for residential solar installations.

Africa is the hottest continent on Earth and has the most sunlight compared to any other continent. Therefore, the solar generation potential is very strong. However, since many countries in Africa are developing, adopting solar may not be a financially sound thing to do for many.

China installed 54.88 GW of PV in 2021.

Image: Sungrow

China is the biggest contributor to the global solar capacity and represents 31% of the global total. However, most of this power is coming from large-scale solar farms. In fact, China has some of the biggest solar farms, behind only India. But when it comes to residential solar installations, it is still a work in progress.

A document released by the National Energy Administration called for a trial program to promote rooftop solar projects, with a goal to have at least 20% of all residential rooftops equipped with solar in 25 provincial-level regions. This program will help increase the availability of rooftop solar in rural areas, and will help China reach a carbon dioxide emissions peak by 2030, and carbon neutrality by 2060.

Summary

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