Which community solar markets are growing in the U.S.?

Community solar is flipping the switch on how people go solar. With no upfront costs and no installation necessary, community solar brings the benefits of renewable energy to those unable or unwilling to install solar panels at their homes. It’s all made possible by large-scale solar arrays called solar farms. Solar farms act as power plants that distribute emission-free energy to the utility electric grid, creating local jobs and a cleaner environment along the way. Overall, community solar is a win for your savings, a win for your community, and a win for the environment. One of its only downsides is that it’s not available everywhere (yet). 

Your eligibility depends on your state and utility, but what was once concentrated to a few key states is expanding through policy and projects nationwide. Let’s look at the expanding community solar landscape and what markets are heating up.  

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

Illinois

Illinois passed the Climate and Equitable Jobs Act (CEJA) in September 2021. This legislation aims to gradually eliminate carbon emissions from the energy and transportation sectors with the ultimate goal of reaching 100% clean energy by 2050. To achieve this, CEJA established rebate and grant programs for electric vehicles and charging stations, accountability standards for utilities, and increased funding for renewables. CEJA also expanded access and funding to the Illinois Shines program, an initiative that supports the state’s renewable energy goals through community solar and distributed generation. 

Explore community solar options in Illinois.

Minnesota

Minnesota historically placed no limits on community solar development, and it shows. While a 2023 policy introduced annual growth caps to limit the development of new projects, Minnesota’s community solar capacity could still almost double by 2032. Minnesota reached 869 megawatts of operational capacity in the first quarter of 2023. 

Explore community solar options in Minnesota.

Maine

Maine passed community solar legislation in 2009, but the program didn’t quite take off initially. Due to the state’s net metering program (the billing mechanism that enables community solar subscribers to generate savings) community solar projects were limited to 650 kilowatts (kW). 

The tide 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.

Explore community solar options in Maine. 

New Jersey

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

In 2018, Governor Phil Murphy signed AB-3723/SB-2314, a bill that established New Jersey'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.

After completing a successful two-year-long pilot program in 2021, New Jersey’s official community solar program reached 48 megawatts of operating capacity as of Q1 2023. 

Explore community solar options in New Jersey.

Maryland

Maryland is currently in year six of its seven-year community solar pilot program that launched 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.

As of the end of 2022, the pilot program reached 88 megawatts of operational capacity. The program is scheduled to end in 2024, and we're excited to see how the Maryland community solar landscape develops as we get close to the end of the pilot.

Explore community solar options in Maryland.

Over the next few years, we can expect more states to kick off community solar programs, and some have already passed supporting 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 scheduled for completion by 2024 that will most energy demands of the island once it’s finished.

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.

What states have community solar legislation?

Currently, 41 states plus Washington, D.C. have community solar projects. Additionally, 22 states and Washington, D.C., have policies that support community solar.

What's 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 state has the largest community solar garden growth in the U.S.?

Minnesota's community solar garden initiative operated by Xcel Energy dominated growth in the U.S. until Q1 2022 when New York took the lead.

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.