Our new report on the community solar landscape
For those of us in the community solar industry, 2023 was a game-changing year. And as the largest manager of community solar projects in the US, we at Arcadia have a unique vantage point on the landscape. That’s why we’re excited to launch a new, first-of-its-kind industry report: The State of Community Solar.
This is the first edition of an annual report that will catalog the growth in our industry and the opportunities we see for the road ahead. You can download the report here for the full deep dive, but in short — we’re happy to say that the state of community solar is stronger than ever.
Multiple states have strengthened and expanded their community solar programs, groundbreaking legislation at the federal level is being implemented across the country, and the industry has responded by investing billions of dollars in new solar projects that will serve millions of customers.
We’re incredibly encouraged by this year’s progress and look forward to seeing how the industry continues to evolve. Below are some of the key highlights from our look back at 2023:
- Widespread growth: Community solar is expected to grow 118% over the next half-decade, adding at least 6 GW of capacity in existing markets between 2023 and 2027.
- Growing public support: Recent polling shows that an overwhelming majority of Americans support the expansion of solar power.
- Surging in the states: Minnesota, Maryland, Oregon, New Mexico, and New Jersey have all made significant upgrades to their statewide community solar programs in the past year, with more poised to follow in 2024.
- Ongoing reforms: States that adopt net crediting policies and allow subscription portability will help their recipients maximize the benefits of community solar programs in their states.
- IRA assistance: The Inflation Reduction Act has primed the pump for investment through a series of game-changing tax credits, funding, and other initiatives that, taken together, have effectively created the nation’s first community solar policy.
- Challenges remain: Despite the bright spots, challenges remain, including high interest rates, increased local opposition to projects, interconnection delays, workforce issues, unfriendly regulatory environments, and ongoing tariff issues between the United States and its trading partners.
Against this backdrop, community solar is expected to grow immensely over the next several years. Thanks to committed industry investments and unprecedented legislation, momentum for this singular clean energy solution will continue to grow. We can’t wait.