That is a totally false assumption. You need space to install solar panels or a wind turbine.
You'll be surprised how many do have the space.
Looks like you two have a culture clash:
The rural states in the US people have probably all the space.
And not just that. Putting solar panels on your roof means you are left with a dark attic. Putting windows in the roof (especially facing south) turns a dark attic in an extra room with lots of light. That is a very good investment or a cheap way to get extra space in your home!
In Oz, attics (like cellars) are "as rare as hen's teeth".
Most houses are mostly single storey, with wide expanses of roof area.
That, plus ample sunlight means solar arrays on roofs are a common feature of suburban homes in this country.
On a different tack, in remote areas, locally sourced renewables are often a better bet than running many kilometres of grid network to service mainly kangaroos & wombats.
All good, but it means that high current recharging stations will be hard to provide at wayside "roadhouses".
These often have their own set of solar arrays (normally on the ground), backed up with a diesel generator.