Solar study offers "holistic comparison" by state

August 8, 2013 | By Barbara Vergetis Lundin

As more consumers are switching to solar, NerdWallet has released its findings for the best states for residential solar energy.

Credit: Finetooth/Wikimedia Commons

"We combined four factors that are most important for average homeowners contemplating solar," explained NerdWallet's Laura Zulliger, the report's author, in an email to FierceEnergy. "SEIA and SEPA's rankings only include solar capacity by state and by utility company."

NerdWallet's rankings took into account current average electricity costs, solar insolation (a gauge of the sun's strength throughout the year), state solar grid capacity, and the efficacy of financial support and incentives offered to homeowners. This approach, according to Zulliger, offers "a holistic comparison of not only state by state progress toward meeting renewable goals and weighs the most important factors that average consumers consider," providing utility industry professionals with a more comprehensive knowledge of how consumers are likely to make decisions about transitioning to solar.

In 2011, the cost of solar panels dropped by 60 percent while states continued to set aggressive goals for deriving up to 35 percent of their electricity from renewables. Generous national and state incentives, combined with group buying and leasing options, are making solar more advantageous for the average American homeowner in states like California, Hawaii, Arizona, Maryland and Delaware, which top NerdWallet's list. New Jersey, New York, Florida, Nevada and Massachusetts round out the top 10.

In states like California, Maryland and Massachusetts, utilities must meet standards set by state legislatures to generate a certain percentage of electricity from renewable sources or face hefty fines. Feed-in-tariffs, in which the utilities credit homeowners for the energy created with residential panels, are one of the most common ways utilities are engaging with consumers to better the chances of achieving state goals and standards. Some utilities, however, are fighting the solar incentives and tariffs that are deemed to diminish business revenue.

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http://www.fierceenergy.com/story/solar-study-offers-holistic-comparison-state/2013-08-08