Community solar makes subtle gains in capacity, but bold moves in policy across the U.S.

Community solar capacity and policy are making moves in many states throughout the country.

Community solar state rankings remained consistent with the previous quarter, according to the Institute for Local Self-Reliance’s (ILSR) community solar tracker latest update. Its tracking is limited to states with accessible and regularly maintained datasets, according to ILSR. States it is unable to track include Alaska, California, Delaware, New Hampshire, New Mexico, Rhode Island, Virginia and Washington.

Community solar enables people and businesses to participate in clean energy regardless of whether they are homeowners or renters, or able to put solar panels on their roof. The consumer subscribes to a portion of the electricity generated by a local community solar installation, receiving credits on their utility bills for the electricity produced by the facility.

At its heart, community solar empowers those who want a carbon-free future by giving them the choice to use renewable energy. Because most community solar programs forbid utilities from owning community solar generation facilities, the programs break up utility monopolies from generation.

The top five states for community solar capacity

The top five states for installed community solar capacity, according to ILSR are:

New York (2,649 MW)
Maine (951 MW)
Minnesota (939 MW)
Massachusetts (905 MW)
Illinois (420 MW)

Maine, Minnesota and Massachusetts continued to be neck-in-neck for second place in capacity.

While New York has by far the most community solar capacity, Maine wins in a landslide once adjusted for per capita.

Community solar capacity per capita.
*Image: ILSR*

New York

New York added 43 community solar projects, increasing its community solar capacity from 2.4 GWac to 2.6 GWac from the previous quarter. The Empire State enacted its community solar policy in 2015, and has since developed into the leading market in the country.

(Also read: New York redirects surplus solar funds after 10 GW distributed solar goal)

Maine

Maine added 15 MW last quarter across 107 new community solar projects, bringing its total community solar capacity to 951 MW. The Pine Tree State established its community solar policy in 2011 and has 2,681 community solar projects in operation.

Maine Gov. Janet Mills signed a bill into law this year making community solar and other front-of-the-meter projects ineligible for net metering. Instead, the Governor’s Energy Office will be tasked with developing a successor program for front-of-the-meter net energy billing projects. If the benefits to ratepayers outweigh the costs, then the Public Utilities Commission will need to approve the plan. (Maine calls its net metering policy “net-energy billing,” which is not to be confused with “net billing.”)

Under Maine’s current law, net-metering customers’ tariff rate is tied to the standard-offer-supply rate plus a fixed portion of the transmission and distribution rate. The new law will impose a monthly fee paid by community solar owners to utilities starting January 2026. The tariff rate for distributed generation resources less than 5 MW will then increase by 2.25% every year beginning Jan. 1, 2027.

“By retroactively changing the compensation for these projects, Maine is sending the signal that investment in clean energy is not stable or reliable,” Kate Daniel, the northeast regional director for the Coalition for Community Solar Access (CCSA) told pv magazine USA.

Minnesota

Minnesota brought 8 community solar projects online last quarter, increasing its total community solar capacity by 8 MW. The North Star State now has 542 community solar projects for a total of 939 MW in capacity. Minnesota was among the first states to implement a community solar-enabling state policy.

Minnesota’s community solar program came under threat earlier this year after two Democrat and one Republican state lawmakers introduced legislation to repeal the program, which senators then rolled into the state’s energy omnibus bill. Ultimately, legislators saved the program when they threw the repeal out from the energy package.

However, Minnesota’s Court of Appeals ruled in August to uphold a new requirement for all Minnesotan community solar subscribers receiving the applicable retail rate to move to the value of solar (VOS) credit rate, which is about 20% to 30% lower than the applicable retail rate.

(Read: Minnesota court rules to cut community solar savings)

Massachusetts

Massachusetts added five community solar projects last quarter, increasing its community solar capacity by 5 MW. The Bay State established its community solar policy in 2014 and currently now has 944 community solar projects online.

(Also read: Massachusetts finalizes SMART 3.0 following emergency solar regulations)

Illinois

Illinois increased its community solar capacity by 27 MW. The prairie state now has 212 community solar projects statewide.

Illinois, which ILSR ranked to have the highest-rated community solar policy in the U.S., turned the state’s first “community-driven community solar” project online earlier this year. Similar to traditional community solar projects, “community-driven community solar projects” are also subscription-based, but the programs are designed by community members to provide tangible benefits specific to the residents, such as regional investment, wealth-building and job opportunities.

(Read: Illinois powers up a new generation of community solar 2.0 & For rooftop, community solar, ‘we’re all for it,’ ComEd says)

Community solar policy updates

Movement in community solar has been rumbling in beyond these five states this past year. Connecticut’s House of Representatives passed a bill for an expansive new community solar program the day before the legislative session ended, leaving it dead upon arrival at the Senate. In Ohio, however, Republican lawmakers reintroduced their community solar bill after their previous version was left to die in the Senate.

Montana’s Republican-controlled legislature nearly unanimously passed a bill 46–4 to enable community solar programs. However, the Gov. Greg Gianforte vetoed the bill, siding with the only one opposed to the bill during testimony, the state’s investor-owned utilities.

Currently in Pennsylvania, advocates are actively working to advance legislation that would allow community solar and renewable natural gas projects to operate, and at no cost to taxpayers. (The bill’s gas portion only allows natural gas derived by capturing emissions from waste.) After bouncing around the state’s general assembly for nearly a decade, this year’s bill finally made a breakthrough by passing the Pennsylvania House of Representatives.

(Read: Why Pennsylvania’s efforts to legalize community solar might make a breakthrough)

In New Jersey, Gov. Phil Murphy recently signed a bill into law that positions New Jersey to expand its community solar capacity by 3,000 MW. Following years of pushback from a utility that was “adamantly opposed” to community solar, Georgia Power agreed to work “in good faith” to enable a path forward for community solar in Georgia.

In 2024, U.S. distributed solar grew 5.4 GW, according to ILSR.

Emphasizing the need to allow non-utility developers to develop community solar, ILSR said, “many utilities offer so-called ‘community solar’ projects that they own, and force subscribers to pay a premium — thus maintaining monopoly control over the market and pocketing any profits for their shareholders.”

(Also read: How the One Big Beautiful Bill impacts community solar & New Jersey to expand community solar by 3 GW)

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