Long weekend, longer sunlight — and it turns out this has been a landmark year for solar in the United States. As we fire up the grill and enjoy the extra day off, it felt like the right moment to step back and look at just how far solar has come, and where it’s headed next.
We just crossed 6 million installations
Earlier this year, the U.S. officially surpassed 6 million solar installations nationwide — and 97% of those are sitting on residential rooftops just like the ones we install every week. What’s remarkable isn’t just the number, it’s the pace: the country went from 5 million to 6 million installations in only two years. For context, it took decades to hit that first million.
Right now, about 9% of U.S. homes have solar. By 2030, that’s expected to climb to 11%, with total installations projected to top 8 million. Solar isn’t a niche choice anymore — it’s becoming a mainstream part of how American homeowners power their lives.
The bigger energy picture
Zoom out to the utility scale, and the growth is even more striking. Cumulative utility-scale solar capacity has more than tripled since 2020 — from 48 gigawatts to 161 gigawatts by early this year. Just a decade ago, solar supplied less than 1% of U.S. electricity. Today, solar and battery storage together accounted for 91% of all new electricity-generating capacity added in the first quarter of 2026 alone, with solar on its own making up 60%.
That means more often than not, when the country adds new power to the grid, it’s coming from the sun.
A more complicated year for homeowners — and why that matters
We’ll be straight with you: 2026 hasn’t been a straight line up for residential solar. The federal residential tax credit (Section 25D) expired at the start of the year, and it caused a rush of installations at the end of 2025 as homeowners raced to lock it in — followed by a quieter stretch since. Industry-wide, residential installations are expected to dip this year before returning to growth in 2027.
Here’s the thing: the fundamentals that make solar worth it haven’t changed. Utility rates keep climbing, equipment keeps getting more efficient, and financing options — including third-party ownership and prepaid plans — are evolving to fill the gap left by the expired credit. If anything, a quieter market often means more attention, faster scheduling, and more room for us to walk you through what still makes sense for your home and budget.
Why Labor Day is a good day to think about solar
Labor Day marks the unofficial end of summer — peak sunlight, peak energy bills, and for a lot of homeowners, the moment they finally get around to that home project they’ve been putting off. If going solar has been on your mind, there’s no better time to get a straight answer on what it would look like for your roof, your usage, and your budget.
Enjoy the long weekend. And if you’re curious what solar could do for your home, we’re happy to run the numbers with you.
Sources: Solar Energy Industries Association (SEIA), Wood Mackenzie U.S. Solar Market Insight Report Q2 2026, American Clean Power Association Market Pulse Summer 2026.
As rivers shrink and reservoirs hit historic lows, hydropower is quietly losing strength. The massive dams that once anchored grid stability now produce less electricity. Demand keeps rising — driven by heat waves and a rapidly electrifying economy. But decline isn’t the whole story. Sunlight is stepping in to fill the gap left by water. How the U.S. adapts will shape the grid’s future and the resilience of entire regions.
Drought Is Hitting Hydropower Hard
Prolonged drought, reduced snowpack, and shifting precipitation are dealing a direct blow to hydroelectric generation. Hydropower needs consistent water flow and adequate reservoir levels. When rivers run low or reservoirs drop below operational thresholds, output falls. Major systems across the West already face reduced capacity. Utilities scramble to lean on fossil fuels or other renewables to compensate.
The Numbers Tell a Stark Story
Power generation at Glen Canyon at Lake Powell fell by 17% on average from 2000 to 2023, compared with pre-drought years from 1988 to 1999. The basin has experienced its driest 22-year period in a 1,200-year record. In 2022, Lake Powell had dropped to historic lows, and power production was at its lowest since 1964, when production started.
The U.S. Energy Information Administration projects 2024 hydropower generation will fall roughly 13% below the 10-year average. Drought across the Pacific Northwest is the primary driver. A 2024 study in Nature Communications found capacity factors declined at approximately 80% of U.S. hydropower plants since 1980. That contributed to a cumulative generation drop of about 23%. The financial toll is equally stark. Research from the University of Alabama estimates drought-related losses between 2003 and 2020 cost utilities roughly $28 billion.
Variability Is the Deeper Problem
Reduced output is serious, but variability may be worse. Hydropower has long excelled at ramping up or down quickly to balance the grid. Unpredictable water availability destroys that reliability. This matters most during extreme heat events, when electricity demand peaks and the grid can least afford instability.
Solar Steps In Where Water Falls Short
Solar power doesn’t just offset declining hydropower — it complements it in ways few other sources can. Drought conditions that reduce river flow often coincide with clear skies and intense sunlight. This creates a natural substitution effect. When Southwest reservoirs are low and hydro output drops, solar production frequently peaks. Solar also excels at covering the afternoon demand surge — exactly the window hydropower has traditionally managed. By meeting daytime load, solar reduces the need to draw down scarce water reserves.
Storage Lets Solar Play Hydro’s Flexibility Role
Paired with battery storage, solar can replicate hydropower’s flexibility. Solar-plus-storage systems capture excess midday generation and release it after sunset. This mirrors the load-balancing function water-powered plants have historically provided. Without solar, hydropower shortfalls typically get filled by natural gas or coal — worsening the very climate conditions driving the water crisis.
The Science Backs It Up
Research increasingly confirms what grid operators already experience. A study in ScienceDirect found that integrating solar with existing hydropower boosted overall capacity by 25% while reducing reliance on hydro during low-water periods. A 2023 study in PNAS found that under extreme drought, fossil fuel plants may increase generation by up to 65% to compensate for lost hydropower. In heavily hydro-dependent states, drought-induced emissions could reach 40% of total electricity-sector emissions. Solar expansion directly counters that outcome.
Hydro and Solar Can Amplify Each Other
Research from Argonne National Laboratory points to an even tighter integration. Pumped-storage hydropower facilities — which accounted for 96% of U.S. utility-scale energy storage in 2022 — can absorb excess solar generation during low-demand periods. They store it as potential energy in elevated reservoirs, then release it when demand rises. In this model, solar and hydro don’t just coexist — they amplify each other. Studies show solar is especially well-suited to compensate for hydropower shortfalls during dry-season low-flow periods — precisely the conditions becoming more common across the American West.
Solar Scales Where Hydro Cannot
Solar projects build faster and across far more locations than large hydroelectric facilities. Dams are locked to specific geographies and dependent on water that’s increasingly scarce. That scalability makes solar one of the most practical near-term tools available as hydropower becomes less predictable.
A Bridge Over Drying Rivers
Solar won’t replace hydropower one-for-one. But it generates power when water is scarce, absorbs peak daytime demand, and pairs with storage to provide evening flexibility. Solar is uniquely positioned to stabilize the grid — and to bridge the widening gap left by America’s drying rivers.
By Frank Scotti, Sustainable Energy Advocate – Jun 16, 2026
Are you considered installing a solar power system on your home? Do you have concerns about the affordability of a home solar energy system? This article is the second of a three-part series that explores the financial aspects of installing home solar.
In many cases, financing a solar system is a good idea financially, especially if you don’t have thousands stashed away to invest. Depending on the installation costs, the energy production, and the cost of grid electricity, many solar power systems are cash-flow positive from day one. This means that the savings from the solar system are greater than the loan payments. This is the ideal situation because it means you are saving money, increasing your property value with the solar system, and using clean energy. It’s a win-win all around.
However, if the term of the loan is short or you have very low electricity rates, you might pay more in monthly loan payments than your utility bill savings. But keep in mind that manufacturers design solar systems to last more than 25 years. So, you will continue to save money after you’ve paid off the loan.
When looking for solar financing, the same general rules apply as with any other type of loan.
A low-interest rate means you will pay less in interest over the life of the loan.
A shorter term means the monthly payments will be higher. But typically, a short-term loan will cost less over the life of the loan.
Loans are either secured or unsecured. Secured loans use an asset you own as collateral.
Consider all the fees associated with the loan, such as origination fees, and not just the interest rate.
Home Equity Loans
A home equity loan allows you to use the equity you have in your home as collateral for the loan. It typically has a fixed interest rate for a set term, and you receive the money in a lump sum. This arrangement functions similarly to having another mortgage on the home, but you may need to have your home appraised. Because the home is collateral for this loan, it is essential that you are able to make the payments.
The interest rate on home equity loans is typically pretty low. The payments are also fixed, so it is easier to budget. According to the IRS, the interest on a home equity loan is tax deductible if it is used “to buy, build, or substantially improve the taxpayer’s home that secures the loan.”
Solar Loans Through the Solar Installer
Many solar panel installers offer financing through a third party. These financing programs vary by the installer, but often offer both a fixed-rate and term loan. The home is not commonly used as collateral and the credit requirements vary by the program.
PACE Financing
Property assessed clean energy (PACE) financing is available in many areas of the United States, and solar energy installations often qualify. This loan enables home and business owners to pay for the upfront cost of a solar system and pay the loan back over time through a voluntary assessment. The loan is associated with the property and not the individual. The loan period is commonly between 10 and 20 years.
Just like shopping around for a solar installer, it’s a good idea to shop around for a solar loan to find the best rates and terms. Finding the best solar loan can make all the difference in being able to afford a solar energy system and save money over time.
Environment Colorado released a new report: “Shining Cities: At the Forefront of America’s Solar Energy Revolution”, a first-of-its kind comparison of the growth of solar in major American cities.
Rounding out the top 10 are:
#10: Denver
#9: San Francisco
#8: New York
#7: Indianapolis
#6: San Antonio
#5: Honolulu
#4: San Jose
#3: Phoenix
#2: San Diego
#1: Los Angeles
Hop on one of the new added flights to Denver, Los Angeles, San Jose, or Phoenix from the new SLO Airport terminal to see for yourself. United also began using larger aircraft on existing routes from SBP. We hear the new planes might be solar powered.
1. Rebates: There is still currently a 30% federal tax rebate. Rebates will gradually drop beginning in 2020.
2. Control: Utility companies do not like giving up control of power generation and profits. States are enacting more regulation that is anti-solar. Utilities are adjusting rate schedules to penalize solar users. Those who get in early will save the most money and be grandfathered into existing policy. Take control of your energy needs and costs.
3. Rate Increases: PG&E just announced another series of rate increases before Diablo Canyon closes. Between December 2015 and December 2016, “a number” of approved rate increases resulted in residential rates increasing 21%. In 2017, a high usage surcharge was added, tiers were consolidated from 3 to 2, and we saw a tier price (adjustment) of +5%. – Business Times, Feb. 17, 2017, Riley McDermid
4. Low Panel Costs: Panel prices are on the rise for the first time since 1977. In 2015, prices were $0.57/watt. In June of 2017, prices hit a low of $0.40/watt. New import tariffs and taxes are expected to kick panel prices above $0.80/watt.
5. Rising Labor Costs: As the renewables industry grows, so does demand for skilled workers. Solar energy labor costs will continue to rise over the next few years.
6. Financing: Programs like $0 down financing, low-interest loans, HELOC, and leases are still easy to acquire. Qualifying credit scores are 675 and up, making financing possible for most homeowners.
7. Savings: Homeowners who installed solar electric just four years ago have already seen a 100% return on investment. Waiting for “something to happen” will cost you thousands/year in lost savings.
8. Trust, Experience, and Value. We use every tool in the toolbox to deliver value in everything that we do, so that your system costs less to install, and saves you more. Since 1975, we have installed over 5,200 solar energy systems across the central coast, saving homeowners $45 million and counting.
Solar power doesn’t just offset declining hydropower — it complements it in ways few other sources can. Drought conditions that reduce river flow often coincide with clear skies and intense sunlight. This creates a natural substitution effect. When Southwest reservoirs are low and hydro output drops, solar production frequently peaks. Solar also excels at covering the afternoon demand surge — exactly the window hydropower has traditionally managed. By meeting daytime load, solar reduces the need to draw down scarce water reserves.
5. Rising Labor Costs: As the renewables industry grows, so does demand for skilled workers. Solar energy labor costs will continue to rise over the next few years.
7. Savings: Homeowners who installed solar electric just four years ago have already seen a 100% return on investment. Waiting for “something to happen” will cost you thousands/year in lost savings.
