Unequal solar photovoltaic performance by race and income partly reflects financing models and installer choices

Abstract

Residential solar photovoltaics (PV) are important for a rapid decarbonization strategy. To chart an equitable energy transition, researchers have measured inequalities in residential PV adoption and identified factors that drive group disparities. We know little, however, about people’s experiences after installing solar. Electricity generation differences among PV systems can be substantial and may contribute to inequitable outcomes even as adoption disparities wane. Here we use data measuring actual monthly generation for over 26,000 PV systems installed in Connecticut to identify significant disparities in system output by neighbourhood income and race. We show that the choice of financing model (purchase or leasing) partly explains the observed disparities. We also find that system generation varies significantly across installers, highlighting that firm behaviour contributes to inequitable outcomes. These findings underscore the importance of measuring the quality and the quantity of renewable energy projects to ensure an equitable energy transition.