Rooftop Solar Could Save Americans $1 Trillion Dollars

But we have to make it easier to permit and install

Last week I published a story about why electricity prices are rising in the US. Today’s newsletter is about one simple thing that every city and state in America can do to reverse that trend: Set a moonshot goal of making rooftop solar half the cost that it is today—and then deliver on the promise.

That might sound difficult, but countries like Australia and Germany have proven that it’s possible. In the US the average residential solar installation costs $28,000. In Australia it costs $4,000; in Germany it costs $10,000. There’s nothing standing in America’s way of making solar this cheap—except unnecessary red tape.

Installing solar on your roof is shockingly difficult in America. Cities, states, and utilities have created approval processes that can take months. Streamlining those processes could cut the cost of solar dramatically.

Last week, Permit Power—a nonprofit focused on solving this problem—published a report that found streamlined solar permitting could deliver:

• $1,600 in annual electricity cost savings on average

• $1.2 trillion in cost savings for the whole country over the next 25 years

• 18.2 million more rooftop solar installations by 2040

Everything necessary to achieve these goals is in the hands of cities and states—not the federal government. Cities could pass policies to offer instant permitting and remote inspections. States could force utilities to allow instant grid connection through the use of smart meters.

In short, we could follow the Australian model and make rooftop solar cheap and abundant.

In 2023, I published a story and video about why rooftop solar is so much cheaper in Australia than America. There’s been some progress since then. States like Florida and Texas have passed bills aimed at streamlining solar permitting. But most cities and states still make it too difficult to install rooftop solar.

For that I reason I’m republishing that video and story below:

Why Rooftop Solar Is So Much Cheaper in Australia Than America

In Australia, more than a third of all homes have solar panels installed on their roof. Sometime in the next year, rooftop solar is expected to beat out coal to become the country’s largest source of electricity.

No country has been more successful at encouraging rooftop solar adoption than Australia. To put the country’s success in perspective, consider that in America, just 2.5% of homes have rooftop solar.

Australia’s rooftop solar success puts even California’s renewable energy progress to shame. The country has three times more rooftop solar installations per capita than the Golden State.

There are many differences between America and Australia’s energy policies and markets. But if you want to understand why Australia has installed so much more rooftop solar than America, there’s only one difference that truly matters. That difference is cost.

In Australia rooftop solar costs less than $1 per watt to install. In America, installation costs range from $2.20 to $3.50 per watt depending on which state you live in, with a median cost of $2.80 per watt.

“Australian rooftop solar is the cheapest retail energy ever provided to consumers in human history. It is extraordinary,” said Saul Griffith, an energy entrepreneur and co-founder of Rewiring America.