Rooftop solar panels are a familiar sight on homes around the world. But for millions of renters, apartment dwellers, and anyone who lives under a shady or incompatible roof, tapping into renewable energy has remained out of reach. Balcony solar—compact, plug-in systems designed for those who can’t install traditional rooftop panels but still want to generate their own clean energy—could change that equation.
The idea of small-scale solar generation first gained traction in Germany around 2017. High energy prices, a vocal, climate-conscious population, and supportive government policies fueled a boom. Today, it’s legal for renters in Germany to install these systems, and more than one million homes now have a set of panels hanging from their balconies or perched on their patios. There’s even a very German word for it: Balkonkraftwerke, meaning “balcony power plants.” The concept has since spread across Europe, but in the United States, adoption remains slow—hamstrung by sparse regulations and little awareness.
The potential, however, is vast. A 2025 study published in Science Advances found that increasing solar output in the U.S. by just 15% could cut annual CO₂ emissions by 8.5 million metric tons. That’s equivalent to removing more than 2 million gas-burning cars from the road each year.
Only 5% of U.S. homes currently have rooftop solar, according to Rewiring America, a nonprofit focused on home electrification. And, while the National Renewable Energy Lab (NREL) estimates that 81% of residential buildings have enough rooftop space for panels, only about half can actually support them due to financial and structural issues, among other factors. Translation: Millions of Americans are locked out of the rooftop solar market.
Access to programs like balcony solar or community solar could drastically change this. Balcony solar gives those in apartments or condos a route to renewable energy, while community solar programs allow people to subscribe or purchase ownership stakes in nearby solar farms.
So, what exactly is balcony solar, and could it finally bring small-scale solar power to the mainstream? Here’s what to know.
What are balcony solar systems?
Balcony solar systems—also called plug-in, portable, or, depending on the size, backyard solar—work like traditional solar setups, but in a smaller, more accessible package. Instead of being strategically angled across shingles, the panels mount to balcony railings, sit on patios, or, in the case of larger models, perch in sunny patches of a yard. And, instead of getting wired into a home’s electrical panel, a balcony solar system plugs into a standard outlet.
A typical setup will include one or more panels, mounting hardware, and a micro-inverter, which converts captured DC power to the AC power our homes run on. Some kits also include a battery for storage.
How much energy can a plug-in solar system produce. Can it power in a typical home?
Balcony solar systems aren’t designed to power an entire home. They’re meant to handle a portion of energy use and provide some relief from the electric utility. Most systems range in capacity from 400 watts to 1.2 kilowatts, though they can be larger than that, too. To put that into perspective: A 400-watt panel captures enough energy to power devices like a phone or a laptop for a day, while 1.2 kilowatts can keep a larger appliance like a fridge running for four hours.
How much could a balcony solar system reduce a utility bill?
It depends. The amount of sunlight in your area, the size of your system, and local utility rates all determine how much a home would stand to save. But, when combined with a battery storage system, balcony solar can have a good amount of upside. In Germany, a 2023 study found that households with a 2-kW balcony solar system with a 2-kW battery setup saw their utility bills shrink by up to 64%. The payback period—that is, that point at which the system’s cost has been recuperated in money saved on energy costs—was within about four years.
In the U.S., it’s a bit trickier to know specifics, because the options are limited and state regulations vary. According to estimates shared withThe Washington Post, by Bright Saver, a nonprofit dedicated to helping balcony solar take off in the U.S. that also sells plug-in setups, a small, single panel system that bathes in six hours of direct sunlight per day could produce about 140 kWh annually. That’s a savings of between $50 and $60 a year.
How much do balcony solar systems cost?
It varies based on the size of the system, but even a state-of-the-art balcony solar setup is cheaper than the tens of thousands you might drop on a traditional rooftop array. You can expect to pay between $400 and $700 for a 400- to 800-watt system and up to $2,000 for a 1.2-kW system with battery storage.
“A balcony solar system eliminates the ‘soft costs’—permitting, interconnection, installer fees—that make up more than 50% of traditional rooftop solar expenses,” says Kevin Chou, CEO of Bright Saver. “A system can pay back its cost in as little as three to four years.”
Are there rebates or tax credits available for balcony solar?
Sort of. Some federal incentives might apply, but the legal definitions are a bit murky.
The Residential Clean Energy Credit offers a 30% federal tax credit for qualified solar equipment installed on a U.S. residence. If your plug-in system is owned by you, permanently installed, and used to power your home, it may qualify. However, that credit expires at the end of 2025.
Some states and utilities offer rebates or clean-energy incentives, but most programs don’t specifically mention plug-in solar. Your best bet is to check the Database of State Incentives for Renewables & Efficiency, which will show you the most current offers available.
How did balcony solar catch on in Germany, and why hasn’t it in the U.S.?
Balcony solar exploded in Deutschland because energy prices soared, public demand for renewable solutions surged, and the government responded by setting clear safety standards and streamlining installation of plug-in systems. The country now has plenty of affordable, standardized kits. People can buy them online or at big-box stores and install them with very little paperwork.
In the U.S., balcony solar exists in a kind of regulatory gray area. Only Utah has a law on the books that explicitly allows the systems, but it’s not that the other 49 states disallow it—they just haven’t updated their policies and codes to address it.
Utilities typically require what’s called an interconnection agreement, which is a contract between a customer and utility in instances where a device might send power to the grid. Utah’s law waives that requirement for plug-and-play solar systems, but that doesn’t put them in the clear there. The statute, which permits setups up to 1.2 kW, also requires compliance with a national electrical code and a safety standard set by Underwriters Laboratories. Neither of those things yet exist. On top of that, grid-connection standards vary by state and utility.
That can cause issues all the way down. Outdated metering tech in homes presents another potential obstacle, says Richard Stromberg, a lecturer at Western Colorado University. Some utilities still rely on older meters that can’t measure the direction of electricity flow. That means in the unlikely event that a balcony solar setup produces more power than a home consumes, the meter may misread this as additional usage and bill the ratepayer for their own generation. Smart meters, which automatically detect the direction of power, could solve the issue and U.S., but they won’t reach 100% penetration until 2029.
Any measures to smooth the path for balcony solar also need to do more than eliminate burdensome interconnection requirements and hue towards safety standards, Chou says. Ensuring tenants’ rights is also essential, he adds. With them, renters and condo owners can install plug-in systems without interference from landlords or HOAs.
Are plug-in solar systems available in the U.S.?
In the same way they are in Germany? Not technically, no. Utah is currently the only state that allows that kind of plug-and-play solar, but so far, no manufacturer has met all the state’s requirements. California, meanwhile, is working on a similar bill. That momentum is great news for the entire product category—and for the climate benefits of balcony solar: The study in Science Advances noted that sun-drenched states like California, Florida, and Texas would be responsible for a greater amount of emissions averted.
Most (if not all) plug-and-play systems you might see stateside are make-work solutions. Kits from the company Craftstrom, for instance, include a smart meter that prevents them from sending any juice back to the grid, skirting the need for an interconnection agreement. Bright Saver has taken a similar tactic—that is, casting its offerings as appliances rather than energy systems—in some states, as well.
What is happening to expand balcony solar in the U.S.?
A lot. Balcony solar is still small in the U.S., but it’s packed with potential—and that means plenty of people see both opportunity and profit in making it work. Bright Saver is probably the most well-known name right now. Co-founded by Chou earlier this year, the group’s goal is to boost awareness of balcony solar and bring Europe’s plug-and-play model to the U.S. They were instrumental in shaping Utah’s bill, for example.
They’re not alone. Florida-based GismoPower makes a wheeled, plug-in solar carport system that can power a home or charge an EV, though they’ve had to navigate the red tape of interconnection agreements to get their pilots set up. The company is working with Lawrence Berkeley National Laboratory and Underwriters Laboratories to help create a national plug-in solar safety standard.
Policy-wise, Utah’s law is setting the pace, and advocates hope it will nudge other states to follow. Balcony solar is built to be DIY, but until policies catch up, it can’t fully live up to its plug-and-play promise.