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Solar Home Panels in 2025: How Many American Households Use Them?

From the neighborhoods of California to the coast of Maine, Americans are cutting utility bills and shrinking their environmental footprint by installing solar panel systems on their rooftops.

You might be wondering — just how many Americans have solar home panels?

As of early 2025, nearly 5 million households (specifically, 4.7 million) have solar panels installed on their rooftops, according to a SolarReviews report. That’s about 7% of U.S. homes, and the number is expected to climb to 15% by 2030 — about twofold within the next five years. Clearly, the trend of solar panel on homes is no longer niche in the U.S. 

In this article, we’ll find out what’s behind the momentum and where this trend is headed next.

  • Why the solar for homes movement is growing
  • Where the trend is headed next
  • What the rise means for you

Source: SEIA

 

How Many Solar Homes Are in America? State-by-State Data

If you’re curious about which state has the most solar energy homes, here’s the gist. The table below shows 14 states with the largest number of residential solar installations.   

State The Number of Households with Solar Panels (2024) Enough State Solar Installed to Power (the number of homes, Q1 2025) Percentage of State’s Electricity from Solar (Q1 2025)
California 1,866,359 14,639,745 33.73%
Arizona 290,786 1,479,089 13.98%
New York 202,406 1,157,226 6.10%
Florida 195,136 2,357,017 9.24%
New Jersey 181,294 914,266 8.40%
Massachusetts 158,723 936,590 26.61%
Colorado 134,729 901,458 11.84%
Nevada 110,687 1,285,827 32.53%
Maryland 99,504 290,164 6.97%
Hawaii 96,622 568,836 21.97%
Connecticut 87,137 279,213 4.37%
Texas 71,146 5,143,651 8.31%
Pennsylvania 63,518 345,007 1.01%
Illinois 59,376 961,041 2.87%

These statistics cover only the number of solar home panels on rooftops nationwide. But the numbers don’t stop there. Because a larger solar panel shift is underway across the states. Small businesses, schools, and industries are also getting involved. 

Source: SEIA

 

Commercial real estate owners are also making strides, having installed solar panels in office buildings, retail locations, and industrial complexes. This not only saves their operational costs in the long term, but ‘the solar shift’ also gives their assets a significant boost in value. 

In addition, manufacturing companies from food processing to automotives are now fueling their facilities and various processes with solar energy. 

As a result? Shifting to domestic solar power is now driving them with more sustainable operations while benefiting from federal tax incentives all at the same time. 

Yet, despite the industrial solar boom, solar energy in homes holds the bigger share. 

Here’s a quick glance at important US Solar energy data:

Metric Value
Total installed solar capacity (all sectors, 2024) 239 GW
Annual solar generation (2024) 303 TWh
Small-scale solar share of capacity ~1/3
Residential solar share of small-scale capacity ~67%

The numbers make it clear — residential solar installations are taking center stage. Of the ~80 GW total small-scale capacity, about 53–54 GW is coming from home solar power panels. 

Interestingly, another EIA data set shows that in mid-2023, 44 GW of solar home panels and small businesses were installed, but by the end of 2024, that number had grown to 55 GW. That amounts to a 25% leap in just 18 months. 

What really stands out is that +11 GW came mostly from solar-powered systems for homes. As you can see, US homeowners are leading the shift to a major degree.

The trend of going solar is not slowing down. If this pace holds, solar energy for residential homes in the US could top 70 GW by 2027. 

True to what SEIA president and CEO Abigail Ross Hopper forecasts, “the number of homes in America that have solar will triple up to 15 million by 2034.” A staggering growth, compared to today’s latest numbers of nearly 5 million sun-powered U.S. homes.

Did You Know?

The total annual solar generation of 303 TWh in 2024 is enough to power up to 28 million homes, every single day, for a whole year (based on ~10,800 kWh each). 

Solar Home Panels Cost Drops by Over 70% Since 2010

Over a decade ago, installing solar energy for houses may have seemed like an extravagant move. But today, thanks to technological advancements, manufacturing and solar power installations have become more efficient and economical.

Here are a few key reasons:

  • Fewer panels are now needed to produce the same amount of power. This means less hardware and installation costs. Thus, making it more financially viable for home solar panels installation.
  • Countries like China have significantly scaled up production. The material costs of components like solar cells and modules have decreased, and so have production costs.
  • The demand is growing due to an increase in public awareness and climate change. As weather changes become more unpredictable, citizens are becoming increasingly aware of how to reduce their carbon footprint and achieve greater energy independence from the traditional power grid.
  • The home solar systems residential market is innovating as well. Now, companies and government institutions offer financing options. There are nownet metering policies’ where homeowners with solar panels can sell their excess power back to the grid. This arrangement makes the ROI of investing in a solar panel more feasible on a short-term basis.

Amongst these reasons, the U.S. government has contributed to the bigger scope of a ‘solar-shift movement’ since the release of the IRA in 2022.

Why put off saving on energy bills? Request your free solar quote now!

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Federal Policies Are Supporting the Play

Apart from the sustainable movement era, federal provisions like tax incentives are driving the solar house systems trend.

The Inflation Reduction Act of 2022 is funneling billions of dollars into U.S.-based manufacturing for solar batteries, panels, and grid improvements and innovations. 

Not to mention, this act continues to offer a 30% federal tax credit for solar installations. All of which makes the payback period a little sooner and the residential solar energy investment more appealing and worthwhile.

The “One Big Beautiful Bill” Is Soon To Kill the Homes With Solar Incentive Program in Early 2027

However, clouds are on the horizon. As of July 4, 2025, a new law was signed by the U.S president, which amends the Inflation Reduction Act of 2022

This amendment is said to eliminate the residential solar tax credit for any systems installed after December 31, 2025.

But this ‘one big beautiful bill’ is said to be only for solar-powered panels for houses. Because commercial solar projects and residential leases/PPAs fall under a separate tax credit. This means their credits remain available for a longer period (before 2028), but come with new limitations on foreign components.

What Does This Mean For You?

From the figures above, just 7.5% of U.S. homes get solar panels installed on their rooftops. Kind of small, isn’t it? Yet, if the momentum continues, we could reach up to 36% by 2050. 

However, with the new law changes, this American home solar trend might face slowdowns. But there’s still a window of time before December 31st. 

If you haven’t yet transitioned to domestic solar energy, now is the time to consider making the switch. 

This means more than just the Inflation Reduction Act of 2022 amendment. But every new home with solar panels sparks a chain reaction across neighborhoods. 

Yes, switching to solar power residential systems not only lowers your bills and provides backup during power outages, but it also helps reduce your home’s environmental impact.

Still on the fence? From where to get solar home panels to finding solar systems for houses that meet your exact needs, SolarCC has got you covered. Get your free solar quote today!

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Which U.S. states have the most homes with solar home panels?

In early 2025, California remains the leader in home solar, with 255 MWdc of new capacity installed in the first quarter. That’s the state’s lowest quarter since late 2020, but it’s still far ahead of everyone else.

Next on the list are Puerto Rico and Florida, which take the second and third spots for the most home solar installations in Q1 2025.

Across the country, homes added 1,106 MWdc of solar in the first quarter of 2025. That’s 13% less than a year ago and 4% less than the previous quarter, with 22 states seeing a drop compared to early 2024.

Even so, the future looks bright — less than 10% of U.S. homes have solar so far, which means there’s still plenty of room for growth.

What are the advantages and challenges of installing solar home panels in rural vs. urban areas?

Urban areas benefit from reliable grid access, net metering programs, and strong financial incentives, such as rebates and tax credits, making solar energy more affordable and effective at reducing high energy bills. However, urban settings often face limited space, shading from nearby buildings, and complex permit requirements.

On the other hand, rural areas offer more space for larger systems, better sunlight exposure, and the option for off-grid independence where grid access is limited. As for the challenges, rural areas often face the loss of farmland to large-scale solar projects, risks associated with old solar home panels being discarded, and lengthy waits — sometimes taking years — just to connect to the grid.

Each setting offers unique opportunities and obstacles, and the right choice depends on your space, energy needs, and long-term goals.

How much can the average homeowner save with solar home panels in 2025?

You can save about $52,000 on electricity bills over a solar system’s lifetime. Most savings fall between $34,000 and $120,000. 

What makes the difference are factors such as local electricity rates, system size, and efficiency. 

But if you’re a homeowner in high-cost electricity areas, you can actually save more, even up to $83,000 if you’re paying around $150 per month for power.