Solar energy is more mainstream now than ever before thanks to rapid innovations in the industry that have slashed prices of solar panels over the past several years. The rapid maturation of the solar market in the U.S. has been fueled primarily by a handful of states who have made the sector’s growth a top priority.
Cumulative Solar Capacity by State
California continues to outpace rival states when it comes to cumulative solar capacity, boasting over 21,000 MW of solar capacity through 2017. North Carolina (4,308 MW), Arizona (3,400 MW), Nevada (2,595 MW), and New Jersey (2,390 MW) round out the top five.
Source: SEIA
#1 California
California is in rarefied air as the longtime leading solar market in the United States. The amount of cumulative solar capacity in California through 2017 (21,074 MW) is roughly the same as the rest of the next top 9 states combined (21,173 MW).
State Solar Quickfacts
State Homes Powered by Solar: 5,791,397
Percentage of State’s Electricity from Solar: 16.68%
Solar Companies in State: 2880 (493 Manufacturers, 1449 Installers/Developers, 901 Others)
Total Solar Investment in State: $44,241.17 million
Growth Projection: 13,281 MW over the next 5 years
Number of Installations: 829,532
Source: SEIA Factsheet
California may have the nation’s strongest solar market, but the state’s solar industry suffered significant job losses in 2017. This fact can be chalked up primarily to the very wet year the state experienced in 2017 with torrential rains early in the year being especially disruptive to planned solar projects. The adoption of new Time-of-Rate rates designed to shift energy consumption from consumers away from peak periods also put a damper on the residential PV market. Look for California’s solar industry to rebound in 2018.
Source: National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
Renewables Portfolio Standard: California’s dominance as the nation’s leading solar state is primarily a result of its ambitious RPS goals first established via legislation in 2002. The most recently amended piece of legislation calls for 33% of the retail sales of California’s electric utilities to come from renewable sources.
Net Metering: California continues to have one of the nation’s most appealing net metering programs. This statewide incentive allows solar homeowners to receive bill credits for excess solar energy their home produces at the retail rate from their utility company.
Residential Solar Mandate: Earlier this year, California became the first state in the country to mandate that new residences be affixed with solar panels. The mandate will apply to buildings built after January 1, 2020, and it will help to propel the state’s already lofty solar capacity to even greater heights.
#2 North Carolina
The abundance of utility-scale solar farms in North Carolina has helped to establish it as a top state for solar capacity for years. While the state’s utility-scale solar capacity continues to dominate, increased capacity in the residential and commercial markets are helping to solidify the Tar Heel State’s position as one of the best solar markets in the United States.
State Solar Quickfacts
State Homes Powered by Solar: 504,119
Percentage of State’s Electricity from Solar: 4.64%
Solar Companies in State: 249 (42 Manufacturers, 118 Installers/Developers, 83 Others)
Total Solar Investment in State: $6,504.31 million
Growth Projection: 8,893 MW over the next 5 years
Number of Installations: 7,527
Source: SEIA Factsheet
The solar industry in the Tar Heel State continues to be a major element of the state’s overall economy. From 2015 to 2017, the state’s solar industry grew by 28.1%, highest among the other top five states for solar capacity on our listing.
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
Competitive Energy Solutions Law: In July 2017, North Carolina Governor Cooper signed landmark renewable energy legislation into law that would allow 3rd-party leasing of solar arrays for rooftop and community solar projects. As a result of a competitive bidding process also established by the law, the state’s largest utility, Duke Energy, announced a $62 million solar rebate program.
Property Tax Abatements for Solar Energy Systems: Solar energy systems increase residential property values, creating a major selling point for prospective solar homeowners. Higher property values also result in higher property taxes, but in North Carolina, the added property value that solar adds to a home is exempt from taxation.
#3 Arizona
Solar energy has long been popular in Arizona, but the implementation of a net metering charge in 2014 and the elimination of some incentives programs in recent years have brought turbulence to the state’s market. Still, more than half a million homes in Arizona are powered by solar energy and the industry’s future remains bright.
State Solar Quickfacts
State Homes Powered by Solar: 514,079
Percentage of State’s Electricity from Solar: 6.09%
Solar Companies in State: 454 (77 Manufacturers, 248 Installers/Developers, 122 Others)
Total Solar Investment in State: $8,174.76 million
Growth Projection: 2,574 MW over the next 5 years
Number of Installations: 117,485
Source: SEIA Factsheet
Solar jobs in Arizona have grown by a robust 21.1% since 2015. The growth has been most notable among solar installation jobs (+42.3%), an indication of how rapidly the state’s residential PV market has expanded in recent years.
Source: National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
Renewable Energy Standard and Tariff (REST): Like most top solar states, Arizona’s rapidly expanding solar industry was fueled by an ambitious renewable energy standard first established in 2006. The standard initially required regulated electric utilities to generate at least 1.5% of their energy from renewable resources by 2006. Legislative revisions have bumped that goal to 15% by 2025.
Residential Arizona Solar Tax Credit: This tax credit reimburses the solar homeowner 25% of the cost of the solar panels, up to $1,000 on their personal taxes in the year of the installation.
Solar Equipment Sales Tax Exemption: The exemption is for 100% of the sales tax equipment on eligible equipment, including; photovoltaics, passive solar heating, active solar space heating, and solar water heating.
#4 Nevada
Las Vegas may be most well-known for its casinos and entertainment venues, but it also happens to be one of the sunniest cities in the world, receiving over 3,800 hours of sunlight a year. The abundant sunshine in Nevada and its flat, arid landscape are ideal for utility-scale solar developments, while solar is an inherently appealing option for homeowners looking to cut high energy bills in this desert state.
State Solar Quickfacts
State Homes Powered by Solar: 425,022
Percentage of State’s Electricity from Solar: 11.52%
Solar Companies in State: 129 (17 Manufacturers, 72 Installers/Developers, 36 Others)
Total Solar Investment in State: $4,122.21 million
Growth Projection and Ranking: 4,528 MW over the next 5 years
Number of Installations: 27,308
Source: SEIA Factsheet
The national headwinds that have stunted solar job growth across much of the country over the past year have been especially acute in Nevada. The state’s solar industry lost 1,807 jobs from 2016 to 2017, which was the third largest reduction in solar jobs by any state over the same time period. Recently passed net metering legislation is expected to reverse the negative trends that the state’s solar industry has seen in recent years.
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
NV Energy SolarGenerations Program: This is a solar rebate program offered by the state’s top utility company, NV Energy, to solar users of all types. The amount of incentives are based on the size of the solar energy system. Up-front incentives (UFI) are available for systems that generate up to 25 kWh of electricity, while Production-Based Incentives (PBI) are available for larger systems.
A.B. 405: In June 2017, Nevada Governor Brian Sandoval signed into law A.B. 405, which reestablished net metering for residential solar projects in the state after the program was abruptly ended by the Nevada Public Utilities Commission in 2016. The passage of A.B. 405 resulted in a significant uptick of SolarGenerations applications in 2017 which are expected to continue through 2018.
#5 New Jersey
New Jersey isn’t located in the heart of the Sun Belt like the other top solar states in the country, but the Garden State still has a thriving solar industry. The state’s history of supporting pro-solar policies initiatives like net metering, the SREC market, and a solar RPS have help to entrench New Jersey as one of the best states for solar in the country.
State Solar Quickfacts
State Homes Powered by Solar: 381,918
Percentage of State’s Electricity from Solar: 3.87%
Solar Companies in State: 570 (83 Manufacturers, 363 Installers/Developers, 118 Others)
Total Solar Investment in State: $7,775.60 million
Growth Projection and Ranking: 4,081 MW over the next 5 years (ranks 8th)
Number of Installations: 91,039
Source: SEIA Factsheet
New Jersey is one of the few states that bucked the national trend and actually added solar jobs from 2016 to 2017. The state added 1,050 jobs in that time period, which was only behind Utah (+1,762), Minnesota (+1,383), and Arizona (+1,070).
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
Net Metering: Like many solar-friendly states, New Jersey offers solar homeowners the opportunity to sell excess power back to the grid. This incentive is especially attractive in New Jersey since the retail rate for net metering is typically much higher than most other states.
A.3723: In May, New Jersey Governor Phil Murphy signed landmark clean energy legislation (A.3723) that would mandate NJ utilities to source at least 50% of their electricity from renewable sources by 2030. New York, Hawaii, California, and Vermont are the only other states with renewable portfolio standards meeting or exceeding New Jersey’s new mandate. The bill also established an ambitious energy storage target and a community solar program that are expected to continue to fuel growth in the state’s solar industry.
The 5 States Making Solar Mainstream
October 4, 2018 by Ryan Regan
About Solar Energy, Arizona, Solar Commentary, Solar Energy News in California --
Solar energy is more mainstream now than ever before thanks to rapid innovations in the industry that have slashed prices of solar panels over the past several years. The rapid maturation of the solar market in the U.S. has been fueled primarily by a handful of states who have made the sector’s growth a top priority.
California continues to outpace rival states when it comes to cumulative solar capacity, boasting over 21,000 MW of solar capacity through 2017. North Carolina (4,308 MW), Arizona (3,400 MW), Nevada (2,595 MW), and New Jersey (2,390 MW) round out the top five.
Source: SEIA
#1 California
California is in rarefied air as the longtime leading solar market in the United States. The amount of cumulative solar capacity in California through 2017 (21,074 MW) is roughly the same as the rest of the next top 9 states combined (21,173 MW).
State Solar Quickfacts
Source: SEIA Factsheet
California may have the nation’s strongest solar market, but the state’s solar industry suffered significant job losses in 2017. This fact can be chalked up primarily to the very wet year the state experienced in 2017 with torrential rains early in the year being especially disruptive to planned solar projects. The adoption of new Time-of-Rate rates designed to shift energy consumption from consumers away from peak periods also put a damper on the residential PV market. Look for California’s solar industry to rebound in 2018.
Source: National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
#2 North Carolina
The abundance of utility-scale solar farms in North Carolina has helped to establish it as a top state for solar capacity for years. While the state’s utility-scale solar capacity continues to dominate, increased capacity in the residential and commercial markets are helping to solidify the Tar Heel State’s position as one of the best solar markets in the United States.
State Solar Quickfacts
Source: SEIA Factsheet
The solar industry in the Tar Heel State continues to be a major element of the state’s overall economy. From 2015 to 2017, the state’s solar industry grew by 28.1%, highest among the other top five states for solar capacity on our listing.
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
#3 Arizona
Solar energy has long been popular in Arizona, but the implementation of a net metering charge in 2014 and the elimination of some incentives programs in recent years have brought turbulence to the state’s market. Still, more than half a million homes in Arizona are powered by solar energy and the industry’s future remains bright.
State Solar Quickfacts
Source: SEIA Factsheet
Solar jobs in Arizona have grown by a robust 21.1% since 2015. The growth has been most notable among solar installation jobs (+42.3%), an indication of how rapidly the state’s residential PV market has expanded in recent years.
Source: National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
#4 Nevada
Las Vegas may be most well-known for its casinos and entertainment venues, but it also happens to be one of the sunniest cities in the world, receiving over 3,800 hours of sunlight a year. The abundant sunshine in Nevada and its flat, arid landscape are ideal for utility-scale solar developments, while solar is an inherently appealing option for homeowners looking to cut high energy bills in this desert state.
State Solar Quickfacts
Source: SEIA Factsheet
The national headwinds that have stunted solar job growth across much of the country over the past year have been especially acute in Nevada. The state’s solar industry lost 1,807 jobs from 2016 to 2017, which was the third largest reduction in solar jobs by any state over the same time period. Recently passed net metering legislation is expected to reverse the negative trends that the state’s solar industry has seen in recent years.
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
#5 New Jersey
New Jersey isn’t located in the heart of the Sun Belt like the other top solar states in the country, but the Garden State still has a thriving solar industry. The state’s history of supporting pro-solar policies initiatives like net metering, the SREC market, and a solar RPS have help to entrench New Jersey as one of the best states for solar in the country.
State Solar Quickfacts
Source: SEIA Factsheet
New Jersey is one of the few states that bucked the national trend and actually added solar jobs from 2016 to 2017. The state added 1,050 jobs in that time period, which was only behind Utah (+1,762), Minnesota (+1,383), and Arizona (+1,070).
National Solar Jobs Census 2017, the Solar Foundation
Solar-friendly state policies:
Cover photo source: www.fpl.com