Community solar projects generate $2.1 billion in economic impact

A 5 MW community solar installation brings an average $14 million of economic activity into the local community and supports 100 jobs, according to a report by the Coalition for Community Solar Access.

April 9, 2025 Anne Fischer

River Valley community solar.

Image: Neighborhood Power

The report Economic Impact of Community Solar, released by the Coalition for Community Solar Access (CCSA), estimated that 1 GW of community solar can support over 18,000 local jobs and generate $2.8 billion in state economic activity.

Community solar offers ratepayers access to solar-generated electricity without having to put solar on their rooftops. By subscribing to a portion of the electricity generated by a local community solar installation, renters who don’t own their rooftops or people who can’t afford the upfront cost of solar have access to clean and low-cost electricity.

Electrical load is expected to skyrocket, with Texas grid operator, ERCOT, forecasting that demand will exceed supply in Texas in the summer of 2026. A great advantage of community solar is that the projects can be built quickly, be powered by private capital, serve the communities in which they are located and use existing infrastructure.

“This is the energy policy equivalent of finding a $100 bill on the sidewalk—if you’re a governor or a legislator and you walk past it, you’re doing your state a disservice,” said Jeff Cramer, CEO of the CCSA. “States are running out of time and options. Community solar is fast, cost-effective, and it works. We don’t have 10 years to build our way out of this energy crunch. In some cases, we have 18 months, and community solar fits the timeline.”

The report noted that in state-level studies across the United States, on average, a 750 MW of community solar development delivers approximately $2.1 billion in economic impact and creates over 14,000 local jobs. At a smaller scale, it finds that a 5 MW installation brings $14 million of economic activity into the community it serves and supports 100 jobs.

A key benefit of community solar, however, is that it lowers electric bills for renters, low- to middle-income ratepayers as well as small businesses. The report states “the message is simple: if you’re looking to jumpstart your state’s economy, start with community solar.”

Recent independent, state-level studies from universities and research institutions show vast economic impact:

Pennsylvania could generate $1.8 billion and 11,000 jobs.
California stands to unlock $12 billion and 25,000 jobs.
Wisconsin could see $2.8 billion in local impact and 18,000 jobs.
Virginia’s Shared Solar program is projected to drive $5.6 billion in economic activity and 46,000 jobs.
Ohio could unlock $5.57 billion and 27,000 job-years from 1,750 MW of planned projects.
New Mexico expects $517 million and 3,760 jobs in its first program phase.
In Washington state, 500 MW could deliver $1.76 billion, 16,521 job-years, and $76 million in state tax revenue.

Despite some efforts to end successful community solar programs, such as Senate bill 2855 in Minnesota, much new policy has advanced with bipartisan support. Republican-led legislation in Missouri and Iowa aim to launch new programs. In Pennsylvania, Ohio, Georgia, Washington and Wisconsin policy has progressed further than ever before, signaling strong bipartisan support and the potential for new market expansion.

Nationally, more than 1.7 GW of direct current of community solar was installed in 2024 alone, marking a 35% year-over-year increase, according to Wood Mackenzie and CCSA’s market outlook. This increase puts the United States on track to break 15 GWdc by 2030, up from 8.6 GWdc currently installed, according to the outlook.

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