Climate change is expected to have a significant impact on the future value of residential rooftop solar panels across the United States. According to a recent study conducted by the University of Michigan, the value of solar, or VOS, is projected to increase by up to 19% by the end of the century. This increase in value is attributed to the household-level financial benefits from electricity bill savings and revenues generated by selling excess electricity to the grid, after subtracting the initial installation costs.
The average 25-year lifespan of a rooftop solar installation means that a system built today will be affected by 2050 weather conditions. This indicates the importance for households to consider the future value when investing in solar energy. By doing so, households stand to gain even greater financial benefits from solar energy, potentially leading to increased adoption of the technology.
Impact of Climate Change
The study reveals that the expected financial gains from rooftop solar panels are mainly driven by the increased demand for air conditioning as the climate warms. This surge in demand for cooling will result in a greater proportion of solar-generated electricity being utilized for home cooling purposes, rather than being exported to the grid. Consequently, owners of rooftop solar systems will benefit from reduced electricity bills and increased self-consumption of solar power.
The value of rooftop solar panels is projected to increase in nearly all U.S. cities under climate change conditions, with Miami experiencing the most significant rise. However, Minneapolis is an exception, where a decrease in the financial benefits of rooftop solar is expected. Factors such as air temperatures, cloud cover, and changes in electricity demand contribute to the regional variances in the future value of residential rooftop photovoltaic systems.
Challenges and Solutions
While future financial gains from solar energy are expected to benefit households that can afford to install panels, there are programs in place to increase accessibility. Initiatives such as cost defraying programs for solar installation, government-sponsored rooftop solar on public buildings, and community solar programs aim to make solar energy more accessible to a wider range of individuals and communities.
The future value of rooftop solar panels is set to increase under climate change conditions, with households across the U.S. projected to realize greater cost savings and benefits from solar energy. As awareness of the financial advantages of residential rooftop solar grows, there is potential for increased adoption of the technology, which could contribute to efforts to decarbonize the power-generation system in the United States and globally.