Best Community Solar States in U.S.

Community solar is a successful model that allows a diverse range of participants to share renewable energy from a single solar array. It is especially advantageous for those who might not be able to install solar panels on their property (like renters or homeowners with unsuitable roofs). Also, its highlighted benefits include reduced electricity costs and increased access to green energy.

As of now, it is reported that more than 24 states in the USA have a community solar with an average energy production of approximately 6 gigawatts last year.

Let’s find out which states have the highest community solar capacity, experiencing growth in markets. In addition, let’s understand the states that are next in line for community solar development and find community solar programs in your state along with incentives and benefits of community solar.

Which States Have the Highest Community Solar Capacity?

The USA successfully enters the year 2025, seeing a surge in the highest community solar capacity in many states. As of 2024, New York tops the list of states, having an operating capacity of 2,113 MW (megawatts AC), and further followed by Minnesota (913 MW), and Massachusetts (877 MW).

New York

As of 2024, New York having more than 2 GW (gigawatts) of operational capacity is the leading state in the US. Being the state with the highest community solar capacity, it is more than twice the capacity of Minnesota, which is the next largest community solar market.

The New York community solar program started in 2011 and is popularly known as the “NY-Sun Program”.

According to calculations for 2024, New York is said to have more than 1,000 community solar projects and the popular ones include:

• Gainesville Solar Project
• Brooklyn Solar Works
• Hardie Solar Project
• Community Solar at The Bronx
• Rice Road Solar Project
• Solar for All
• Hwy 28 Solar Project

Factors and policies that contribute to the success of community solar in New York:

• NY-Sun Program is New York’s incentive program launched to improve the widespread use of solar energy and set aside more than $1.9 billion for the advancement of solar build-out in the state.
• Incentives and Tax Credits by IRA (Inflation Reduction Act) along with the declining cost of equipment have made solar more affordable for many.
• Community Solar Access and Regulations allow individuals to access solar energy without installation. Moreover, programs like ‘Solar for All’ help reduce electricity bills for income-eligible households.

According to reports generated by the end of 2024, New York succeeded in accomplishing its ambitious target of installing 6 GW of distributed solar. Moreover, the state has a futuristic aim of reaching 10 GW of solar by the year 2030. With more number of emerging community solar projects in New York, it has helped many individuals by creating more than 14,000 jobs statewide.

Minnesota

Having an operating capacity of 913 MW (megawatts AC), Minnesota comes next to New York as the 2nd highest state in terms of community solar capacity. Moreover, the community solar gardens of Minnesota have greatly contributed to the state’s renewable energy capacity.

The Minnesota community solar program was launched in 2013 with the passage of the ‘SolarRewards Community program. As a result, the state’s initiative expanded access to solar energy for many residents who were not able to install solar panels on their properties.

Minnesota has numerous projects including completed, ongoing, and development stages which fetched the state a position of 2nd highest community solar capacity. Here are some of the popular community solar projects that include:

• SolarRewards Community Projects by Xcel Energy has revolutionized the development of solar energy for many individuals.
• LMI (Low- and Moderate-Income) accessible programs like CSG (Community Solar Garden) are administered Department of Commerce in Minnesota.
• Nexamp’s Solar Garden is widely established in various parts of Minnesota, and this project witnessed a great receiving for its community involvement.
• SunShare Community Solar Gardens is another popular option that offers participants opportunities and benefits from solar energy.

Several factors and policies have played a major role in Minnesota’s successful contribution to community solar:

• State Legislation and regulation by Minnesota Solar Energy Standard implies that a portion of the state’s energy must be obtained from renewable sources.
• Consumer Protection Policies ensure that consumers receive fair treatment, which includes — prohibiting exit fees and demanding truthful billing practices.

Minnesota mandates and demands that the LMI-Accessible CSG Program reserves a certain percentage of community solar capacity for low- and moderate-income households.

Massachusetts

Producing a great amount of energy, the Massachusetts community solar projects provide many residents and businesses with access to renewable energy sources. Moreover, these projects on average cut down standard electricity costs by 5% to 10% for those who join.

The Massachusetts community solar program started in 2008 by passing the “Green Communities Act” and eventually this became the state’s first solar carve-out and virtual net metering policy.

Around 204 community solar projects in Massachusetts in terms of operational or completed, which include some of the following popular projects:

• Solar Carve-out and Solar Carve-out II programs
• Solarize Mass initiative
• Solar Massachusetts Renewable Target (SMART) Program
• Solstice: Focuses on community solar for low-income residents.
• Mass Solar Connect brings various community solar projects together.
• Green Street Solar project is focused on enhancing local renewable energy access.

Factors and policies that contribute to the success of community solar in Massachusetts:

• Green Communities Act is Massachusetts’s first solar carve-out and virtual net metering policy. Also, this act encourages energy efficiency and more renewable energy projects.
• SMART (Solar Massachusetts Renewable Target) is a popular program that is constantly providing incentives for solar projects.
• Solarize Mass is a beneficial community-driven initiative to promote solar energy.
• Net Metering Credits provides bill credits to electricity customers for the amount of energy generated at community solar farms, making it financially attractive.

Therefore, Massachusetts strongly has a unique point compared to other states, i.e., focusing more on low-income households and making solar energy accessible to them by helping to bridge the energy equity gap.

Which States Are Experiencing Growth in Community Solar Markets?

We have been witnessing that community solar markets are emerging across the United States, operated by welcoming policies, financial incentives, and stronger consumer demand for renewable energy.

Here are the following top 4 states mentioned evaluated based on the current market, historical backdrop, funding, and projections for the next 5 years. And, these 4 states have been, and are experiencing, greater growth in their community solar markets:

New York

Current Market: New York has successfully established itself as one of the leading states in the community solar market, with a great capacity of more than 2,000 MW by the end of 2024.

Historical Backdrop: It all started in 2015 when New York passed the “Community Solar Law”, and this helped establish the framework for community solar projects. Moreover, the growth began to boost after the initiative of “REV (Reforming the Energy Vision)” which focused mainly on creating a flexible energy system. In 2018, the “Community Solar Energy Pilot Program” was launched, which further paved the path for more widespread access to solar energy.

Funding: New York has received funding from the state renewable energy programs, and federal tax incentives to support community solar projects, including low-income participation.

Projections for the Next 5 Years: It is projected that New York will continue leading the community solar market, with an expected capacity of 2.4 GW (gigawatts) between 2022 and 2027. And, by 2030, “NYSERDA (New York State Energy Research and Development Authority)” is projected to reach 3,000 MW or 3 GW of community solar capacity with increased participation from LMI (low-to-moderate income) households and businesses.

Illinois

Current Market: In early 2023, more than 107 community solar projects have been established with a total operational capacity above 207 MW.

Historical Backdrop: The Future Energy Job Act (FEJA) introduced in 2016 specifies the Illinois Solar for All (ILSFA) program by aiming to expand solar energy access for low-income communities.

Funding: The ILSFA program aims to boost solar energy accessibility for low-income communities by increasing the annual funds by $70 million. In addition, the Biden administration, targets supplying electricity for 5-plus million homes in America with community solar projects by 2025.

Projections for the Next 5 Years: It is expected that Illinois will continue its expansion in the community solar market through the Climate and Equitable Jobs Act (CEJA) by targeting 40% of energy from renewable sources by the end of 2030, and you can expect 100% by the beginning of 2050.

Florida

Current Market: According to the data provided till 2024, the community solar in Florida operated with a project capacity of 1,490 MWac.

Historical Backdrop: The Solar and Energy Loan Fund (SELF) founded in 2009 was the nation’s first non-profit community development financial institution (CDFI) that has financed more than 3,400 sustainable projects including community solar.

Funding: SELF and its partners Florida Solar For All received $156 million from the federal government to help people in Florida access clean energy.

Projections for the Next 5 Years: The state’s main goal is to expand the community solar project upto 6,000 MW by the end of 2025 and 10,000-plus MW by 2030.

Colorado

Current Market: Colorado’s community solar capacity extended upto 200 MW in 2024.

Historical Backdrop: The Community Solar Gardens Act (HB 1342) was initially enabled by Colorado, becoming the first state in the U.S. to introduce the program in 2010. The program expanded through a deal with Xcel Energy that helped increase the capacity of low-to-moderate-income subscribers.

Funding: Colorado received $156 million from the United States Environmental Protection Agency (EPA) aims to increase the adoption of rooftop and community solar by supporting low-income individuals to prefer solar energy.

Projections for the Next 5 Years: The new funding and regulation encourage Colorado to achieve 100% clean energy by the end of 2030 or 2040 throughout the state.

Which States Are Next in Line for Community Solar Development?

Community solar is gaining momentum across the U.S. as several states are lined up for massive growth, and here are a few states that are tentatively scheduled to launch in the upcoming years:

• Idaho: between 2025 and 2026
• Alabama: between 2025 and 2027
• Louisiana: 2025
• Mississippi: 2025
• Montana: between 2027 and 2028
• West Virginia: between 2025 and 2029
• Wyoming: 2027
• Pennsylvania: between 2025 and 2028
• South Dakota: between 2025 and 2029

How Do I Find Community Solar Programs in My State?

Here is a step-by-step guide on how you should find community solar in your state:

1. Visit the official website of the Department of Energy’s Community Solar Basics to find out the projects available in your state.
2. Use online tools provided by Energy Sage’s official website so that you can find community solar projects available in your area. Also, you can prefer ILSR’s Community Power Map, which helps to explore various clean energy programs.
3. Contact your local utility company or use search engines to find out about the best community solar programs offered in your area.
4. Explore various programs such as the NCSP (National Community Solar Partnership) program to explore various options available so that low-income and other underserved groups can access community solar.
5. Review all the details carefully after you find a program by scrutinizing the subscriptions, costs, savings estimates, and contract terms.
6. Finally, join the subscription provided by your utility or community solar company by filling out the required details and accepting the terms and conditions.

What Are the Incentives and Benefits of Community Solar?

Community solar offers various financial incentives that include tax credits, rebates, and direct incentives from states as well as additional financial benefits through pilot programs in the following ways:

1. Federal Tax investment credit makes it easier for solar panel system owners to claim a 30% tax credit for the overall installation cost. The project owners can save several hundred to thousands of dollars for large-scale solar projects such as the community solar.
2. Solar Renewable Energy Credits (SRECs): By selling RECs, solar owners can earn additional income. Particularly in states with SREC programs, solar farm owners can add extra revenue and reduce their community solar subscriptions by selling SRECs.
3. Net Metering: A billing mechanism such as net metering permits solar energy system owners can claim credits by feeding the additional energy generated by your local community solar back to the utility grid. Through virtual net metering, these credits are added to your utility bill reducing your monthly electricity costs.

Although individual subscribers in community solar can’t claim these incentives directly but can reduce the subscription cost.

The community solar pilot program expands the accessibility to low and moderate-income individuals to participate in the subscription to benefit from solar energy at reduced costs. In other words, customers who are facing barriers to accessing solar energy due to lack of ownership or unsuitable roofs can purchase a share of the electricity generated. This benefits the environment by reducing the dependence on fossil fuels and lowering air pollutant emissions.