Groundbreaking Report Reveals Bureaucratic Reform Could Unlock Solar Access for 20 Million Additional American Households by 2040.

OCTOBER 28, 2025 – A transformative analysis released by Permit Power reveals that streamlining the cumbersome rooftop solar permitting process could reduce installation costs by up to 61% in the United States, potentially enabling nearly 20 million additional families to adopt solar energy by 2040. The report, “As Cheap as Our Peers: How cutting red tape can lower the cost of rooftop solar and offset rising utility bills,” exposes how bureaucratic barriers have made American solar installations dramatically more expensive than in comparable countries.

The United States currently suffers from solar installation costs up to seven times higher than those in Australia and Germany. Where American homeowners face a median cost of $28,000 for a standard 7 kW system, their Australian counterparts pay only $4,000 for equivalent systems, while German households pay approximately $10,000. This staggering cost differential has created a significant adoption gap, with just one in ten U.S. families having installed solar compared to one in three in Australia.

The Soft Cost Crisis

The report identifies “soft costs” – expenses unrelated to equipment – as the primary culprit behind America’s solar affordability crisis. These account for a staggering 78% of total installed costs for residential solar systems. Outdated and cumbersome approval processes create massive inefficiencies, including:

• Varying and convoluted permitting requirements across thousands of local jurisdictions
• Inconsistent interpretation of regulations between different plan reviewers and inspectors within the same jurisdiction
• Unresponsive utility interconnection processes that can delay project activation for months after completion

“There is strong research that shows how unnecessary bureaucratic barriers raise the cost of rooftop solar and home batteries in the United States,” said Talor Gruenwald, Research Director of Permit Power and author of the report. “This is the first research that shows the enormous benefits that would accrue to American families if we removed those bureaucratic barriers and brought the costs of home solar and batteries down to levels in other peer countries.”

Global Precedents and Local Success Stories

Internationally, several models demonstrate how streamlined approaches can dramatically reduce costs and delays. The report highlights how instant permitting software, remote inspections, and automatic interconnection approvals have enabled other countries to achieve significantly lower installation costs.

Similar successes are emerging domestically where innovative approaches have been implemented. In Wusu, China, local natural resources authorities slashed审批流程 (approval processes) for a major solar project from five工作日 (work days) to just one, earning praise from companies for reducing costs and accelerating project timelines. In Ninghe District, a multi-departmental collaboration created standardized审批方案 (approval solutions), increasing first-time submission approval rates to 92% through digital transformation and dedicated service teams.

Xinghua City has also demonstrated remarkable efficiency, processing 2,445 photovoltaic projects this year alone – representing 87% of all filed projects – through extended services that include after-hours and holiday approvals.

Policy Solutions for Cost Reduction

The report outlines concrete strategies that policymakers can implement to dramatically reduce solar costs:

• Adopt Instant Permitting Software: Implement digital systems or qualified third-party permitting to issue immediate approvals for standard residential solar and battery projects
• Implement Remote Inspection Protocols: Allow code compliance verification through photo or video submissions for routine installations
• Automate Utility Interconnection: Establish automatic approval for qualifying residential systems using smart inverters that meet established technical standards
• Update Outdated Requirements: Eliminate mandates for unnecessary and expensive hardware while enabling modern cost-saving technologies

These commonsense reforms mirror approaches being implemented in other regulatory contexts. The UK government recently announced streamlined environmental permitting for low-risk activities, recognizing that excessive regulation was delaying critical housing and energy infrastructure.

Economic Benefits for American Families

The timing of these reforms is particularly urgent as utility bills are rising faster than inflation, a trend expected to continue according to the report. With one in seven American households currently living in energy poverty, most cannot afford the high upfront cost of solar despite its potential to reduce electricity bills by over 80%.

If U.S. households could purchase rooftop solar at international prices, the 20 million additional installations by 2040 would generate average annual bill savings of $1,600 per household, resulting in aggregate electricity bill savings of $1.2 trillion over the lifetime of these systems.

The report also highlights the urgent timeline for action, as the federal 30% Residential Solar Tax Credit is scheduled to expire at the end of 2025. Industry experts note that homeowners must begin the process immediately to complete installation before this critical incentive expires.

Building Momentum for Reform

The Permit Power report concludes that cutting bureaucratic red tape would enable 23% of U.S. households to adopt rooftop solar by 2040. As rising electricity costs strain household budgets and climate concerns grow, streamlining solar permitting represents a rare policy opportunity that combines economic benefits, consumer savings, and environmental progress.

With international models proving the effectiveness of streamlined approaches, and domestic success stories demonstrating their feasibility, the path forward for American solar policy has never been clearer.

About Permit Power:
Permit Power is a research and advocacy organization focused on identifying and eliminating regulatory barriers to renewable energy adoption. Through data-driven analysis and policy development, the organization works to accelerate America’s transition to clean, affordable energy.