Industry creates model legislation to streamline rooftop solar permitting, grid connection

Draft legislation from Solar and Storage Industries Institute and SEIA provides policymakers with a framework to reduce delays with interconnection and permitting processes for households and businesses.

Solar Energy Industries Association (SEIA) and the Solar and Storage Industries Institute created a research-backed model for legislation designed to support access to rooftop solar and meet growing electricity demand. 

The “Grid Ready Home Act” is intended to serve as a draft for policymakers to use when designing solar legislation. Specifically, the draft provides a framework for streamlining grid interconnection and permitting processes to reduce costly delays for residential and commercial solar projects. 

“Now more than ever, we need leadership in statehouses across the country,” said David Gahl, executive director of the Solar and Storage Industries Institute (SI2). “The Grid Ready Home Act gives states an immediate way to address rising demand with solar and storage and provide Americans with affordable energy solutions by making rooftop solar easier to connect and install.” 

Soft costs, which are costs not related to the cost of equipment and components, make up more than half of residential solar project costs in the United States, according to research from SI2.  

The Grid Ready Home Act says that by standardizing approval processes for solar installations below 25 kW and requiring smart inverter functionality for managed grid operation, soft costs can be reduced, thereby supporting more solar installations. 

Permit applications can cause delays of two to six weeks or more, causing a poor customer experience and higher project cancellation rates, said SEIA. Permitting also drives up costs. In New Jersey, for example, permit approvals and related barriers add an estimated $3,800 to $4,500 to average project costs. SEIA said the cost could be in excess of $6,000 to $7,000 for an average project. 

Ready more about SI2’s model legislation here.

Cutting costs

Residential solar in the United States is experiencing a downturn. The industry has suffered major bankruptcies, lowered demand, and soon faces the loss of the 30% residential solar tax credit, among other challenges.

And while rooftop residential solar is expected to soon get more expensive, Andrew Birch, co-founder and chief executive officer of OpenSolar, said it can be a lot cheaper – perhaps even 50% cheaper – than it is today.

Birch pointed to Australia, where he said the average 7 kW solar array with a 7 kW battery costs $14,000. That equates to $2.02 per W, with batteries included.

“You can sell it on Tuesday and install it on Wednesday, there’s no red tape, no permitting delays,” said Birch.

As a result, Australian homeowners are saving roughly 50% or more on their electricity bills with rooftop solar, said Birch. In just 10 years, rooftop solar jumped from 7% to 33% of rooftops in Australia nationwide, he said.

In the United States, that same solar and battery installation averages $36,000, said Birch. Permitting alone can take two to six months, and the cost per watt of a solar plus storage installation is up to 2.5 times the Australian price, landing at $5.18 per W.

“And now with net metering disappearing and Trump’s latest move to phase out the tax credit … it’s going to make rooftop solar 40% more expensive than grid power for consumers – if we don’t act,” said Birch. 

Read OpenSolar’s suggestions to cut residential solar costs in half.