Giving Compass' Take:

• Warren Leon outlines the barriers to effectively implementing solar in low-income communities and what can be done to overcome them. 

• Which communities in your area would benefit from targeted solar programs? 

• Read abut why communities of color are missing out on the benefits of solar power.


There is increasing interest in solar PV projects that benefit low- and moderate-income (LMI) households.

State governments, community groups, environmental justice advocates, philanthropic foundations, utilities and the solar industry have all embraced the concept of using solar technology to reduce economic inequality and to build wealth in LMI communities. Some players in the solar market have also sought to prevent a loss of public support for solar if it were to become perceived as benefiting upper-income residents at the expense of those less well off.

Because of the declining cost of solar and growing desire for a more inclusive clean energy economy, many efforts are underway to accelerate LMI solar adoption. But will those initiatives succeed? Can solar projects bring tangible economic assistance to LMI communities? This sometimes seem unlikely, because there are significant obstacles that need to be overcome, including:

  • LMI residents who rent homes and apartments can have difficulty benefiting financially from solar since they do not control their roofs.
  • LMI homeowners with below-average credit scores are often unable to qualify for PV system financing.
  • Most LMI households do not have sufficient tax liability to take advantage of the federal residential solar tax credit.
  • Federal housing assistance programs are structured in a way that can limit LMI households’ ability to save money with solar.

Although the challenges to LMI solar adoption are great, some strategies have proven successful. The nonprofit Clean Energy States Alliance assembled and worked recently as part of a diverse team with representatives of Jackson State University, the Partnership for Southern Equity, PaulosAnalysis, the University of Michigan, The Nathan Cummings Foundation and The Solutions Project.

By reducing the energy costs for institutions that serve large numbers of people, solar can provide valuable economic assistance to the community. Given some of the challenges to developing residential solar installations that benefit renters and residents of HUD-supported housing, institutional projects can be an assured way to ensure that cost savings from solar remain in the community.

Read the full article about solar in low-income communities by Warren Leon at Smartcities Dive.