Rooftop Solar Is Booming. Let’s Keep it That Way.

In last week's Boston Globe an MIT economics professor argued that the fastest and fairest way to transition to a clean energy economy is to shift government policy support away from distributed solar, and toward utility-scale solar. But distributed, rooftop solar has particular benefits to the environment, to society and to electricity customers that make it worth the investment.

Gideon Weissman

Former Policy Analyst, Frontier Group

Solar panels are popping up on rooftops across the country – according to the Solar Energy Industries Association, a new homeowner or business “goes solar” every two minutes. As previous Frontier Group research has shown, supportive public policies, including policies that compensate owners of solar energy systems fairly for the extra power they supply to the grid, are a key reason for that growth.

The growth of rooftop solar energy is a good thing for our environment and a good sign for the future, right? Not according to MIT economics professor Richard Schmalensee, whose op-ed in the Boston Globe last week argued that the fastest and fairest way to transition to a clean energy economy is to shift government policy support away from distributed solar, and toward utility-scale solar.

On one level, he has a point: Rooftop solar panels are still more expensive per unit of electricity than big utility-scale projects. All other things being equal, every buck we spend to support utility-scale solar energy would seem to deliver more “bang” when it comes to producing clean energy than rooftop solar power.

But all things aren’t necessarily equal. Distributed, rooftop solar has particular benefits to the environment, to society and to electricity customers that make it worth the investment.

First, distributed solar is fast to implement. Preventing the worst impacts of global warming will require us to transition to clean energy as quickly as possible, so renewable energy installations that can proceed now, with little fuss or muss, are especially valuable. Residential rooftop projects, for example, take just a few months from initial deposit to power generation. According to SEIA, “The siting and permitting process [for a utility-scale solar plant] can take more than three to five years to complete.”

Distributed solar energy is also flexible and does not require developing new land. Because distributed solar can be installed just about anywhere, like a rooftop or a parking lot canopy, it is perfect for installation in densely populated and energy-intensive regions like the northeast.

Distributed solar can help overcome some of the social and political challenges of transitioning to a clean energy economy. Because it allows consumers to generate their own electricity – as opposed to buying it from a utility – distributed solar appeals to American values of independence and entrepreneurship, an appeal which helped spark the Green Tea Party movement. Because rooftop solar installations take place in our communities, they also create opportunities for local businesses, and serve as visible reminders of the local economic benefits of clean energy. And distributed ownership lets consumers, and even entire communities, concerned about global warming take the clean energy transition into their own hands.

These benefits don’t even touch upon potential benefits to the grid itself. While incorporating large amounts of distributed solar can require investments in the distribution grid that aren’t required for utility-scale plants, we need to be making similar investments anyway to support a grid that can more effectively match supply to demand, integrate electricity generated from a variety of local sources, and enhance the resilience of local grids to enable them to better withstand disruption.

Public policies in select cities and states are sparking dramatic increases in both local- and utility-scale solar power. We need both. But rooftop solar is especially valuable in helping to build a 100 percent renewable future. As previous research has shown, rooftop solar delivers benefits that far exceed the costs of public support. It’s a good thing. Let’s keep it going.

Authors

Gideon Weissman

Former Policy Analyst, Frontier Group