Interest in solar is growing in red states—so why aren’t homeowners installing it?

Residential solar installations have grown rapidly over the last decade, with an average growth rate of almost 30% per year. While the residential solar market contracted slightly in 2024, many states saw a substantial increase in interest in solar from 2023 to 2024—and the top five may surprise you. West Virginia, historically a coal-producing state, led the charge with a 99% year-over-year increase in homeowners considering solar from 2023 to 2024.

Based on properties that registered and were approved for home solar quotes on the EnergySage Marketplace, the top five states with the largest year-over-year growth from 2023 to 2024—West Virginia, Utah, Michigan, South Carolina, and North Carolina—voted red in the November 2024 election. In fact, four out of the top five surpassed a 50% annual growth rate in requesting solar quotes.  

However, homeowner interest in solar isn’t translating into installations. According to solar data platform Ohm Analytics, there has actually been a year-over-year decrease in installed residential solar capacity growth in those same five states. Red state homeowners may be intrigued by solar, but it’s not translating to actual installations. So what’s going on?

As solar adoption in the U.S. continues to expand, these high-growth red states are likely playing “catch up” as solar awareness increases and more homeowners consider making the switch. In that sense, even a modest surge in solar quote requests can cause significant percentage increases. 

Another factor could be the economic benefits that solar provides—homeowners want to save on their electric bills and are interested in the federal, state, and local tax breaks that make solar cheaper to install. Awareness around the Biden administration’s Inflation Reduction Act of 2022, a landmark $391 billion climate legislation bill that extended the 30% Investment Tax Credit (ITC), is also likely driving interest.

But these same states still lagged in installed residential solar capacity in 2024, likely due to high upfront costs, long payback periods, and weak state incentives. Here’s a closer look at what’s happening.

*Based on data from Ohm Analytics
**Based on data from EnergySage covering the second half of 2024
***Based on January 2025 data from the Energy Information Administration (EIA)

As the nation’s second-largest coal producer, West Virginia has long been considered “coal country.” But in the face of America's shrinking coal industry and rapidly rising utility rates, Mountain State residents are likely interested in joining the transition from coal to clean energy. 

Federal investments from the IRA are creating opportunities for employment and sustainable land conversion, potentially making clean energy seem more approachable to residents. Still, West Virginia doesn’t offer any state-specific solar tax incentives, and the cost-per-watt is more than 22% above the national average. While solar advocates in the state continue to petition for better net metering laws and solar rates, the cost of solar might still be too steep for some West Virginia homeowners.

Utah has a budding solar industry thanks to increased investments in renewable energy infrastructure, but residential solar participation is still low in the state. A few key factors could be stalling installations: The Renewable Energy Systems Tax Credit (RESTC), which covered up to 25% of purchase and installation costs for residential solar systems, was phased out, and in 2017, Utah ended statewide net metering.

The state’s largest utility provider, Rocky Mountain Power, has a variable net-metering rate in place that changes every year, which could be a turnoff for those considering rooftop solar. And with a solar payback period of 19 years, the longest of any state according to EnergySage data, going solar simply may not be worth the price tag for Utahns.

Through the state’s MI Healthy Climate Plan, Michigan is encouraging homeowners to discover the benefits of solar panels to help the state reach 100% carbon neutrality by 2050. In addition, Michigan passed the Homeowners' Energy Policy Act last year, which aims to make rooftop solar and other energy efficiency upgrades more accessible for homeowners. The legislation also removed a barrier to going solar by ruling that Homeowners Associations (HOAs) can no longer ban their members from installing solar panels. 

While MI state incentives like the Lansing Board of Water & Light rebate and Michigan Saves Home Improvement Loan are also available to empower residents in the Great Lakes State to make the switch to solar, many still aren’t. At $3.10 per watt for solar—a whopping 24% greater than the national median price—its high price tag might be turning some homeowners away.

Solar in South Carolina is on the rise as recent state legislation has expanded solar access. A landmark energy bill, the Energy Freedom Act, lifted caps on net metering and solar leasing. Federal and state tax incentives, such as the South Carolina state tax credit, can also help save South Carolinians 55% on solar installation costs.

Despite these potential drivers, South Carolina’s complicated net metering program might be a sticking point for solar shoppers.

Residential solar power in North Carolina may owe part of its recent growth to the Duke Energy PowerPair program, which offers a one-time rebate worth up to $9,000 upfront to customers who install residential solar and battery systems. North Carolina also passed a Solar Access Law in 2022, which prevents HOAs from banning solar panels and helps guarantee homeowners' right to install solar.

In 2023, Duke issued a change to its net metering rules, now instituting different rates for different times of day, which has slashed the financial benefits of solar in the state. These changes are likely why fewer North Carolinians are moving forward with installations. However, those who install panels by the end of 2026 will still be eligible for Duke’s modified net metering rate called the “bridge rate” for 15 years after their interconnection date. 

While interest in solar isn’t resulting in significant solar growth in West Virginia, Utah, Michigan, South Carolina, and North Carolina, that’s not the case for every red state. Of the 10 states that grew their year-over-year residential solar capacity the most in 2024, six voted red in the November 2024 election, according to data from Ohm Analytics. If we can encourage new lucrative solar incentives and lower payback periods in more red states, residential solar will be able to truly shine nationwide.