Which community solar markets are growing?

Historically, community solar has been the most popular–and most accessible–in four key states: Minnesota, Colorado, Massachusetts, and New York. But excitingly, more and more states are jumping on the community solar bandwagon, and new projects continue to pop up each year.

So, what markets are heating up for community solar? And which states can we expect to take the plunge next?

Thanks to a mixture of policy changes and lucrative incentives, these states are poised for community solar growth over the next few years:

Illinois

Illinois passed the Climate and Equitable Jobs Act in September 2021. This legislation puts the state on track for a carbon-free power sector by 2045 and 100 percent clean energy by 2050. In addition to equity and electric transportation provisions, it also directly holds utilities accountable and, important for community solar, increases funding for renewables. As part of this program, community solar funding will increase five-fold under the Illinois Shines initiative with specific provisions for low-income residents. This means the number of community solar projects will increase along with the number of subscribers. The program fully opened on December 14th of 2021.

Minnesota

Minnesota currently has the largest number of programs in line for development out of any state and has the largest capacity of any state community solar program. Minnesota's community solar program grew to 831 megawatts of operational capacity in April 2022. Since first starting the community solar program in the state, nearly all customers have seen some financial benefit.

Maine

Maine is not new to the community solar game; the state initially passed community solar legislation in 2009. However, roofless solar never quite took off back then for a few reasons, including net metering caps and restrictions on project sizes.

The tides began to turn in 2019 when legislators passed An Act to Promote Solar Energy Projects and Distributed Generation Resources in Maine, which combatted previous solar growth barriers in the state and paved the way for further development. Specifically, the bill raised community solar project caps from 650 kilowatts (kW) to 5 MW, allowing for larger-scale solar farms. Even better, the bill directed the Public Utilities Commission (PUC) to acquire 250 MW of shared distributed generation–aka community solar–capacity by July 2024.

Like Illinois, plenty of community solar projects are planned for Maine, but most are not yet operational – these things take time to build, after all! But community solar subscription options are quickly becoming available for Mainers statewide.

New Jersey

New Jersey has always been an East Coast leader for rooftop solar, so it's not surprising that they are now making moves on the community solar side.

In 2018, Governor Phil Murphy signed AB-3723/SB-2314, a bill that established the Garden State's first community solar pilot program. The initial pilot included 45 separate community solar projects, totaling roughly 78 MW of capacity split between three of the state's investor-owned utility territories: Atlantic City Electric (ACE), Jersey Central Power and Light (JCP&L), and Public Service Electric and Gas (PSEG). The first of these projects went live in 2021.

Now, the state is launching the second year of the pilot program, and it has been met with high interest from community solar developers. This iteration has roughly doubled the allotted capacity, soliciting 150 MW of new community solar projects in the coming years.

Maryland

Maryland first launched their community solar pilot program in 2017. Though a limited number of projects currently live in the state, the Public Service Commission (PSC) has set aside a program capacity of 418 MW – more than each of the three states we mentioned above to date!

The program duration is seven years and is scheduled to end in 2024. We're excited to see what the Maryland community solar landscape looks like then!

Over the next five years, we can expect more states to kick off community solar programs – some have already passed legislation! Here are a couple of up-and-coming community solar states to keep an eye on:

• New Mexico: Governor Michelle Lujan Grishman signed a bill in April 2021 to establish a statewide community solar program, and the Public Regulation Commission has already received multiple application requests from community solar developers.

• Virginia: the Commonwealth enacted SB 629 back in 2020, which calls for the state to establish a community solar program in Dominion Energy territory. The program will initially have a cap of 150 MW and should be ready to launch by 2023.

• Hawaii: As of April 2020, Hawaii is in the second phase of its community solar program, Community Based Renewable Energy (CBRE). There are many projects currently in development in the state, including one in Lana'i, that is expected to be completed by 2024 and meet most energy demands of the island.

What states have community solar legislation?

Currently, 39 states have community solar projects, including Washington, D.C. Additionally, 22 states, including Washington, D.C., have policies that support community solar.

What is the catch with community solar?

There is no "catch" with community solar. Community solar programs are free to join because there is no purchase of solar panels involved, and you are receiving credits from solar generated remotely.

Does California have community solar?

California has had Community solar since 2013 and is expected to produce more than 42 million kilowatt hours (kWh) of energy over the next 30 years.

Which utility has the largest community solar garden growth in the U.S.?

Minnesota's community solar garden initiative operated by Xcel Energy is the largest in the U.S. despite economic issues and setbacks due to the pandemic.

What are the benefits of community solar?

Community solar helps you go solar and use renewable energy even if you do not own a home, enables you to save monthly on your monthly bill, and invest in local renewable energy projects.

EnergySage is the nation's leading online solar marketplace: using our Community Solar Marketplace, you can compare local options, get a quick community solar savings estimate, and seamlessly subscribe to an open project in your area. Over 10 million people visit EnergySage annually to learn about, shop for and invest in solar. Compare your community solar options today to see how much solar can save you.