The transition to clean energy is one of the most urgent and transformative shifts of our time, regardless of whether you support it, or not. In the United States, clean energy is on an unstoppable growth momentum and it’s benefiting especially the red states.
As we accelerate towards renewable energy sources, there is another challenge emerging: ensuring that this transition is equitable. Energy equity is the idea that all individuals, regardless of income, race, or geography, should have access to affordable, reliable energy. While by some, this may be viewed as a moral issue, it is rather a structural necessity – leading to increased productivity and a competitive advantage. Especially, in light of the increasing electricity demand from data centers and electrification.
To understand the current landscape of solar energy and energy equity, we must first examine the historical context of energy development in the U.S. and how disparities were baked into the system from the beginning.
Since the industrial age, energy access in the United States has been deeply tied to infrastructure, policy, and politics—often to the detriment of communities who did not have a say in shaping those decisions.
In the late 19th and early 20th centuries, coal, oil, and natural gas powered the country’s rapid economic expansion. The U.S. built an energy system designed for centralized production and long-distance transmission, largely benefiting urban centers and industrial corridors. Rural areas often received poor service—or none at all. And the differences were stark. By the 1930s, 90% of urban households had electricity versus 10% in rural areas. (U.S. Department of Energy [DOE], 2022).
A major turning point came in the middle of the Great Depression. Private companies had shown very little interest in serving rural areas because of perceived ability to pay, high construction costs, and low populations.
The Rural Electrification Act (REA) changed that by incentivizing the expansion of power lines into underserved, rural areas, improving quality of life and economic growth through funding cooperatives. While this was a significant stride toward equity, the benefits of electrification still flowed unevenly. Many Black and Indigenous communities were left out of early rural electrification efforts, highlighting how access was determined not just by geography, but by race and power.
Mid-20th century redlining policies compounded the issue. As Black and Brown communities were systematically denied home loans and public investment, they were also excluded from infrastructure upgrades, including modern energy systems. Many of these same neighborhoods now suffer from energy inefficiency—older housing stock, poor insulation, and higher utility bills.
Solar energy offers a fundamental reimagining of the U.S. energy system. Rather than centralized, fossil-fueled power plants, solar enables a distributed, localized model. It can be generated from rooftops, community arrays, or utility-scale farms—and it emits no greenhouse gases during operation.
In the past decade, solar energy has seen explosive growth. According to the Solar Energy Industries Association (SEIA), solar accounts for nearly 5% of U.S. electricity generation, up from less than 0.1% in 2010. Costs have dropped over 80% in the same period, making solar more affordable than ever.
Unfortunately, under the current administration, these gains are set to slow or even stop as companies slow construction and development of new renewable energy plants. And with that slow-down, electricity prices are set to raise as the demand grows for electricity, and the supply slows.
Solar reduces dependence on fossil fuels, cuts emissions, and can significantly lower energy bills. For households, rooftop or community solar can slash monthly electricity costs by 10–50%, depending on the program and location.
Despite its potential, the benefits of solar energy are not equitably distributed.
Installing rooftop solar panels typically requires homeownership and upfront capital or access to financing—barriers for many low-to-moderate income (LMI) families. Nearly half of U.S. households are renters and thus can’t install panels, even if they want to.
Solar access varies dramatically by state and region, shaped by local policies, incentives, and utility regulations. States like California, Massachusetts, Illinois, and New York have robust programs to support LMI access, while others lag far behind.
Studies show that majority-Black and majority-Hispanic neighborhoods have significantly less rooftop solar adoption than majority-White neighborhoods, even when controlling for income and homeownership. This disparity underscores how solar’s promise is being shaped by the same forces that created past inequities.
One of the most promising tools for addressing solar equity is community solar—shared solar projects that allow multiple customers to benefit from a single solar array, often located offsite. Subscribers typically receive credits on their utility bills for their share of the power produced, without needing to install anything on their home.
States like New York, Illinois, and Colorado have implemented or expanded community solar programs with a strong equity lens—often requiring that a percentage of the project’s subscribers be LMI residents.
Policy is central to driving an equitable energy future.
The 2022 IRA marked a watershed moment for clean energy, including tax credits for solar and energy storage, with specific bonuses for projects in disadvantaged communities. The IRA also provides funding for Environmental Justice Block Grants and Energy Justice initiatives, giving local organizations the tools to lead clean energy efforts.
Again, the IRA is now set to be eliminated at an accelerated pace as the current administration seems dead set against any form of renewables, despite the strong economic and environmental arguments for developing low-cost, clean energy.
Some states are leading with equity-first solar programs:
But in many parts of the country, energy policy remains fragmented and inequitable. Utility resistance, inadequate funding, and lack of community involvement still hinder progress.
Achieving energy equity is not just about expanding solar—it’s about redesigning the system from the ground up with justice in mind.
The U.S. is undergoing a monumental energy transformation—but equity cannot be an afterthought. Solar power holds tremendous promise to not only decarbonize our energy system, but also correct decades of systemic exclusion. If we build it right—community by community, policy by policy—this new energy economy can be one where power truly belongs to the people.
Now is the moment to make clean energy not just cleaner, but fairer. Because sunshine doesn’t discriminate—and our energy system shouldn’t either.