Residential solar can begin before the roof

Plug-in balcony solar is becoming a lower-cost, easier way for people to get started with renewable energy, giving renters and budget-minded consumers a route around many of the usual obstacles while also creating a new way for installers to develop lasting customer relationships.

For years, rooftop solar has usually meant a major home upgrade and a substantial financial outlay. It has also tended to favor higher-income homeowners, and even they could run into resistance from solar-unfriendly HOAs, local governments, or utility providers.

Plug-in solar, often called balcony solar, offers a different approach that could change that equation. It generally refers to a small-scale solar system, usually under 1.2 kW, that can be bought at retail and installed temporarily, often on a balcony rail or in a backyard. The panels feed into a small inverter, sometimes paired with a battery, and that unit is then plugged directly into a household wall outlet.

Until recently, plug-in solar systems were generally illegal and were also viewed as unsafe. This year, 10 states, including California, passed laws allowing them, and a testing and certification framework based on UL 3700 was established early in the year. While the details differ by state, the rules generally cap systems at 1.2 kW, which is above the roughly 400-watt size common in today’s retail market, and let owners use them without a signed utility interconnection agreement. Owners still have to notify their utility before installation, and the systems are not allowed to send power back to the grid. In addition, many state laws restrict, and in some cases bar, landlords and HOAs from blocking residents who want to install them.

Residential solar has an entry-point problem, and plug-in systems may help solve it

Higher household and utility bills are pushing more consumers to look for ways to control energy use and costs. With some systems priced as low as $800 for a 400-watt setup, plug-in solar offers a far cheaper starting point than traditional rooftop solar.

For installers, that means it should not be seen as a rival to rooftop solar. Instead, it may be better understood as a first step toward a much longer renewable-energy relationship with a homeowner.

Residential solar is not so much facing a demand problem as an entry problem. Our latest Solar Snapshot report found that 71% of homeowners have at least some interest in solar. But interest does not always turn into a workable rooftop project. Once you look closer, the reasons become clear.

To begin with, the conventional rooftop market only serves a limited group of consumers, leaving out renters, people in multifamily housing, and households with roofs that are not suitable for solar. For many people, that means solar is off the table entirely. And even for those who do qualify, the process is far from simple. Forty-four percent of interested homeowners say solar costs more than they expected. We refer to the difference between expectation and reality as “Cost Shock,” and it is now the main barrier to adoption in our research.

The expiration of the solar tax credit has made the barrier even higher. Over the two decades the credit was available, the U.S. solar industry grew by more than 200 times. Without it, the way installers close sales has changed dramatically. Nearly half of interested homeowners, 49%, say they cannot afford solar without tax credits, while 55% of installers say third-party ownership is now their most common financing option and 65% expect it to account for most of their 2026 sales.

That leaves a large group of people who want to produce their own power but for whom the industry’s traditional entry point does not work. New tools that help homeowners compare options, estimate costs and savings, and explore solar before talking to an installer can make the process feel less opaque. Plug-in solar fits into that broader shift by giving consumers more ways to engage with solar on their own terms, rather than requiring a full rooftop project or a financial agreement that feels risky as a first step.

Not the end of the road, just another turn on the “Solar Coaster”

At the moment, the plug-in solar market is mostly direct-to-consumer, but that does not mean it is the “Uber of Solar.” Yes, it removes many of the usual barriers to adoption, but solar professionals still have several clear ways to add value.

First, shading does not always work the way people expect. The people I have spoken with are often surprised to learn that even one persistent line of shade, such as from a utility pole or a balcony rail, can cut an entire array’s output to nearly nothing. Add in factors like the best tilt and azimuth, airflow for cooling, and the effect of dirt or debris on panel performance, and the case for professional guidance on panel placement becomes strong.

Second, plug-in solar can serve a broad group of people who are unable to go solar for reasons other than the cost of a traditional system. Depending on the location, there is also a strong case for a full-service plug-in setup, where trained professionals handle the installation. That could be especially useful for people who want the convenience of expert help without committing to a full rooftop project.

That approach can create a new relationship with the customer. A few lower power bills may lead them to think more seriously about where their electricity comes from, how much they use, and how much control they have over it. Years later, they may buy a home and return to the same installer for a full rooftop solar system or an EV charger. That kind of trust matters: 54% of homeowners interested in solar say technical expertise is a top factor when choosing an installer, alongside warranties and customer reviews.

For installers, the opportunity begins before the roof

One lesson from studying solar customers is that the first energy decision rarely happens in isolation. Someone who starts with a few panels on a balcony now may be the same person considering rooftop solar, battery storage, or an EV charger years later. Not every customer will follow that path, and that is not really the point. The point is that plug-in solar gives more people a way to start using solar energy and build relationships that can grow with their needs, early.

The latest Aurora Solar Snapshot also found that utility bill savings and energy independence continue to be the main reasons people choose solar, and have outranked environmental impact for four straight years. Plug-in systems, which typically pay for themselves in two to five years, can be a practical first step toward lower utility bills. In much of the country, a 1,200-watt plug-in system can reduce electricity costs by as much as $400 a year, and balcony solar can help open the door to other home electrification upgrades.

Of course, not every plug-in customer will become a rooftop customer. In a market with fewer incentives, the most durable installers will be the ones able to meet customers at multiple stages of their energy journey. Plug-in solar lowers the barrier to that first purchase and creates more chances to build trust and relationships. It may be a much smaller system, but for installers willing to think beyond the traditional model, it could mark the start of a much larger customer relationship.