Solar and Housing Affordability

Introduction

As housing costs rise across the country, energy bills continue to put pressure on low-income households. Clean energy, particularly solar, offers a path to relief—but equitable access remains a challenge. Making solar affordable and available for all is essential to both environmental justice and economic resilience.

The Link Between Energy and Housing Costs

Energy costs can make up a disproportionate share of expenses for low-income households. These families often live in older, less efficient buildings and spend more of their income on utility bills.

• According to DOE data, low-income families may spend up to 20% of income on energy

• High energy burdens contribute to housing instability and health risks

The Role of Solar in Affordable Housing

Solar can dramatically lower utility costs in multifamily and single-family affordable housing developments. Benefits include:

• 📈 Lower energy bills for tenants and building owners

• 🚀 On-site power generation improves community resilience

• 🏡 Increases property value and quality of life

Barriers to Adoption in Low-Income Communities

• 🚪 Upfront installation costs

• ⛔️ Limited access to financing

• 🤔 Skepticism or lack of awareness about solar benefits

• ⚖️ Regulatory challenges in multi-tenant buildings

Case Studies of Equitable Solar Access

• California's SOMAH Program: Helps install solar on multifamily affordable housing

• NY-Sun Initiative: Provides incentives for low- and moderate-income solar projects

• Denver Housing Authority: Installed over 10 MW of solar across affordable housing units

Financing Tools and Incentives

• Energy Service Agreements (ESAs) and Power Purchase Agreements (PPAs): Let building owners adopt solar with no upfront cost

• Green Banks and CDFIs: Provide financing targeted at underserved markets

• Federal and State Tax Credits: Include carve-outs for low-income access under the Inflation Reduction Act

Policy Recommendations

• Streamline permitting and interconnection for affordable housing projects

• Expand targeted funding for low-income solar programs

• Support community solar with reserved slots for income-qualified households

Conclusion

Affordable housing and clean energy must go hand in hand. When solar is accessible to all, it reduces energy burdens, strengthens communities, and brings equity to the clean energy transition. Surge can help housing developers and nonprofits navigate the technical, financial, and regulatory pathways to bring solar where it’s needed most.

TL;DR

• Solar can cut energy costs for low-income households and make housing more affordable

• Barriers include financing, regulations, and lack of awareness

• Tools like PPAs, tax credits, and incentive programs are driving adoption

• Surge can support equitable solar deployment through design, development, and partnerships