Is ‘Plug-In Solar’ the Answer to the Utility Affordability Crisis?

The conflict with Iran has caused oil prices to rise above $100 a barrel for the first time since 2022, signaling a severe restriction on global oil supplies and increased consumer costs.

Experts fear this dramatic price increase, resulting from the Trump administration's decision to attack Iran, could trigger an energy crisis similar to the one following Russia’s 2022 invasion of Ukraine, which led to a surge in utility disconnections when homeowners couldn't afford their bills.

This comes at a time when residential electricity costs have already seen an approximate 40% increase since 2021.

Meanhile, a new DIY utility solution that has taken Europe—especially Germany—by storm is starting to allow U.S. homeowners to go solar without the hefty $30,000 price tag.

Plug-in solar systems offer simplicity, portability, and affordability—and could result in much needed savings for renters and homeowners who have seen their utility bills skyrocket recently.

From New England to Hawaii, nearly 60% of the U.S. has proposed state-specific legislation directed at removing installation and regulatory barriers to the increasingly popular plug-in solar systems, according to The New York Times.

Small panels address a twofold problem

For many, investing in a rooftop solar system is out of the question. They cost tens of thousands of dollars, require certain roof conditions and specifications, and do not cater to the more than 45 million renters across the U.S.

However, in today’s market of continuously rising living expenses, a new form of this clean-energy technology may be a solution to both affordability and accessibility concerns.

“There are two pillars to what’s pushing this forward: giving [people] some control over [their] utility bill as well as creating a quality-of-life backup,” says Fox Swim, senior industry researcher at Aurora Solar.

Plug-in solar panels consist of smaller photovoltaic cells with a total output typically between 200 and 1,200 watts—think of a laptop charger on the low end and a microwave on the high end. They plug directly into a traditional power outlet, and the panels generate electricity using sunlight, which is then fed back into the home’s electrical system. 

“It’s a very similar idea to the camping solar panel systems,” Swim describes.

Depending on the specific wattage, a plug-in unit can range from a few hundred dollars to a few thousand—only about 1% to 10% of the cost for a rooftop setup.

Often referred to as “balcony solar,” plug-in systems are usually installed on a balcony, fence, patio, deck or in a front or backyard. With starter kits containing one to four solar panels, connector cables, and a plug-and-play microinverter, most homeowners and renters can set them up without hiring a contractor. Higher-end kits also include a battery that stores energy for evening and nighttime use. 

Plug-in units are the pay-for-themselves, energy-efficient appliances of the solar world. Not only do they help manage electric bills, but they have a typical payback period of two to five years, according to a recent study. The exact savings potential varies by location, but the majority of the country may see utility reductions of up to $400 per year for a 1,200-watt plug-in system.

Renters can finally solarize

Unlike standard rooftop systems, plug-in solar panels don’t generate enough capacity to power an entire home—only 25%, at a maximum. They are, however, an attainable step toward energy independence and a hedge against peak-hour rate hikes, especially for those traditionally excluded from climate efforts and more likely to experience power outages.

“[When] looking at an age breakdown of people who are interested in solar and people who aren’t, overall, that interest level skews significantly towards younger generations,” Swim details from her company’s Aurora Solar Snapshot Report.

For the longest time, however, this demographic has been sidelined from the renewable-energy revolution. Many are unable to afford homes in the first place.

Since the panels are small and can be installed on balconies or patios, plug-in solar is perfectly tailored toward apartment and rental home living.

In addition to being affordable and accessible, plug-in solar equipment is also portable. Instead of having to leave the whole system behind when relocating, renters and people who move frequently can easily pack it up and load it into the moving van.

Reality is not as plugged in

Although these eco-friendly systems have the potential for users to bypass the traditional “red-tape” hurdles of permits, inspections, and installation costs, most consumers in the U.S. cannot simply go out and purchase a kit today. 

Plug-in solar systems are generally subject to the same regulations enforced on their more hazardous rooftop counterparts, such as obtaining approval from the utility company before connecting a unit to the electric grid. According to Swim, this regulatory process can involve inspections, fees, permits, and restrictions—and the potential risk of denial.

“Even if there are no roadblocks, it can take months, and you have to pay permitting fees and sign whatever interconnection agreement exists, which significantly degrades the economics of the system you would be getting,” she explains.

Plus, when consumers are forced to jump through extra administrative hoops, they lose motivation. All they see are mountains of burdensome paperwork and inevitable delays.

The various states’ bills under consideration aim to remove these obstacles. Utah was the first to enact such a law, serving as a model for the other states to follow.

“I think [these legislations] will revolutionize affordability, especially in densely urban areas,” Swim says.

Colorado recently jumped on the bandwagon with its newly introduced House Bill 26-1007. “This bill establishes important safety standards for plug-in solar and meter collars, so more Coloradans can take advantage of this renewable energy source, especially those living in apartments or shared spaces,” Rep. Rebekah Stewart told Colorado House Democrats in a recent press release.

At its core, the bill exempts “portable-scale solar generation devices” that are 1,920 watts or less from interconnection agreements, meaning users do not need preinstallation approval from their electric provider, nor do they have to pay any associated fees. It also prevents any party, such as a landlord, from imposing restrictions or unreasonable conditions on installation or operation.

Furthermore, Colorado’s push for meter collar adapters centers affordability and efficiency. These devices serve as an alternative to upgrading the entire electrical circuit panel and streamline the transition to solar power.

“It seems pretty obvious that there’s going to be disruption in the utility rate market moving forward,” Swim says. She encourages renters and homeowners to familiarize themselves with their jurisdiction’s rules, especially as the market picks up and safety regulations are sorted out, and then just take the plunge. “What have you got to lose?”