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Solar power in the United States

Solar power in the United States includes utility-scale solar farms and local distributed generation, such as rooftop solar and community solar arrays. In 2024, U.S. solar generation reached 303.2 terawatt-hours, with 239 gigawatts of combined photovoltaic and concentrated solar power capacity, surpassed only by China and the European Union. Notable solar plants include the 354 MW Solar Energy Generating Systems and the 392 MW Ivanpah Solar Electric Generating System in the Mojave Desert. Many states have ambitious renewable goals, such as California’s commitment to 100% zero-carbon electricity by 2045, supported by legislation from Governor Jerry Brown.

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Solar potential

A 2012 report from the National Renewable Energy Laboratory (NREL) described technically available renewable energy resources for each state and estimated that urban utility-scale photovoltaics could supply 2,232 TWh/year, rural utility-scale PV 280,613 TWh/year, rooftop PV 818 TWh/year, and CSP 116,146 TWh/year, for a total of almost 400,000 TWh/year, 100 times the consumption of 3,856 TWh in 2011.1314 For comparison, onshore wind potential is estimated at 32,784 TWh/year, and offshore wind at 16,976 TWh/year, while the total available from all renewable resources is estimated at 481,963 TWh/year.15

Renewable energy is the least expensive source of power generation as of 2023,16 even considering the upfront cost of installation. Therefore, the economics of the renewable energy transition are highly favorable unlike in prior decades. Solar is second only to onshore wind turbines in levelized cost of electricity competitiveness.17 Replacing historical sources of fossil energy (coal, oil, and natural gas) with solar and wind results in lower operating costs for utility providers and lower energy costs for consumers.18 This does not include the significant additional health and mortality burden to society from fossil fuel use that makes it even more expensive than it appears.19

History

The Carter administration provided major subsidies for research into photovoltaic technology and sought to increase commercialization in the industry.20: 143 

In the early 1980s, the US accounted for more than 85% of the solar market.21: 143 

During the Reagan administration, oil prices decreased and the US removed most of its policies that supported its solar industry.22: 143  Government subsidies were higher in Germany and Japan, which prompted the industrial supply chain to begin moving from the US to those countries.23: 143 

Solar energy deployment increased at a record pace in the United States and throughout the world in 2008, according to industry reports. The Solar Energy Industries Association's "2008 U.S. Solar Industry Year in Review" found that U.S. solar energy capacity increased by 17% in 2007, reaching the total equivalent of 8,775 megawatts (MW). The SEIA report tallies all types of solar energy, and in 2007 the United States installed 342 MW of solar photovoltaic (PV) electric power, 139 thermal megawatts (MWth) of solar water heating, 762 MWth of pool heating, and 21 MWth of solar space heating and cooling.24

Another report in 2008 by research and publishing firm Clean Edge and the nonprofit Co-op America found that solar power's contribution could grow to 10% of the nation's power needs by 2025, with nearly 2% of the nation's electricity coming from concentrating solar power systems, while solar photovoltaic systems would provide more than 8% of the nation's electricity. Those figures correlate to nearly 50,000 megawatts of solar photovoltaic systems and more than 6,600 megawatts of concentrating solar power.25

The report noted that the cost per kilowatt-hour of solar photovoltaic systems had been dropping, while electricity generated from fossil fuels was becoming more expensive. As a result, the report projects that solar power was expected to reach cost parity with conventional power sources in many U.S. markets by 2015. To reach the 10% goal, solar photovoltaic companies would need to make solar power a "plug-and-play technology", or simplify the deployment of solar systems.26 The report also underlines the importance of future "smart grid" technologies.27

Solar Energy Industries Association and GTM Research found that the amount of new solar electric capacity increased in 2012 by 76 percent from 2011, raising the United States’ market share of the world's installations above 10 percent, up from roughly 5 to 7 percent in the past seven years.28 According to the U.S. Energy Information Administration, as of September 2014 utility-scale solar had sent 12,303 gigawatt-hours of electricity to the U.S. grid. This was an increase of over 100% versus the same period in 2013 (6,048 GWh).29 The number of homes with solar systems installed had been increasing rapidly, from 30,000 in 2006 to 1.3 million in 2016.30 A 2014 study by the U.S. Department of Energy predicted the figure could reach 3.8 million homes by 2020.31

Solar photovoltaic power

Solar PV installed capacity

Solar PV capacity in the United States by year32
YearTotal (MWp)YOY growthInstalled capacity (MWp)
20102,094849
20114,03993%1,941
20127,41684%3,374
201312,22064%4,766
201418,46451%6,245
201525,94441%7,509
201641,17658%15,104
201752,28427%11,080
201863,01521%10,733
201976,55221%13,512
202096,45826%19,849
2021120,50324%23,565
2022140,00516%19,502
2023179,00028%38,995
U.S. grid-connected photovoltaic capacity by state (MWP)3334353637383940
NoJurisdiction201520142013201220112010200920082007
United States25,45918,17312,090.27,373.84,010.7 2,165.71,261.6 791.7474.8
1California13,2439,9775,183.42,559.31,563.61,021.7768.0528.3328.8
2Arizona2,3032,0691,563.11,106.4397.6109.846.225.318.9
3North Carolina2,0871,245469.0207.985.540.012.54.70.7
4New Jersey1,6321,5741,184.6955.7565.9259.9127.570.243.6
5Nevada1,240823424.0349.7124.1104.736.434.218.8
6Massachusetts1,020734445.0207.374.638.217.77.54.6
7New York638394240.5179.4123.855.533.921.915.4
8Hawaii564447358.2199.585.244.726.213.54.5
9Colorado544396360.4299.6196.7121.159.135.714.6
10Texas534330215.9140.385.634.58.64.43.2
11Georgia370161109.921.46.91.80.2<0.1<0.1
12New Mexico365325256.6203.4165.543.32.41.00.5
13Maryland349205175.4116.837.112.85.63.10.7
14Pennsylvania258245180.2164.3133.154.87.33.90.9
15Utah2552416.010.04.42.10.60.20.2
16Connecticut21912877.139.631.124.619.78.82.8
17Florida200159137.3116.995.073.538.73.02.0
18Indiana13611249.44.43.50.50.3<0.1<0.1
19Missouri13111148.918.52.00.70.2<0.1<0.1
20Tennessee12911864.845.022.05.70.90.40.4
21Oregon1148462.856.435.823.914.07.72.8
22Ohio11310298.479.931.620.72.01.41.0
23Vermont1076441.528.011.73.91.71.10.7
24Louisiana926046.618.213.42.60.2<0.1<0.1
25Delaware706162.846.126.55.63.21.81.2
26Illinois655443.442.916.215.54.52.82.2
27Washington623927.419.512.38.05.23.71.9
28Minnesota332015.111.34.83.61.91.00.5
29Iowa27214.61.20.1<0.1<0.1<0.1<0.1
30Wisconsin252022.521.112.98.75.33.11.4
31New Hampshire227.04.02.02.02.00.70.10.1
32Virginia211112.610.54.52.80.80.20.2
33Arkansas20.13.81.81.51.11.00.2<0.1<0.1
34Maine19.412.75.32.81.10.30.30.30.2
35Michigan191412108.82.60.70.40.4
36Rhode Island17.112.67.61.91.20.60.60.60.6
37Washington, D.C.D.C.171016.513.911.64.51.00.70.5
38South Carolina15128.04.64.10.90.1<0.1<0.1
39Kentucky9.58.47.94.83.30.2<0.1<0.1<0.1
40Oklahoma5.21.50.70.30.2<0.1<0.1<0.1<0.1
41Kansas4.72.31.10.50.2<0.1<0.1<0.1<0.1
42Idaho4.62.61.81.00.40.40.2<0.1<0.1
43Montana4.54.03.02.20.70.70.70.70.5
44West Virginia3.42.62.21.70.6<0.1<0.1<0.1<0.1
45Alabama2.01.91.91.10.50.40.2<0.1<0.1
46Wyoming1.51.21.00.60.20.20.1<0.1<0.1
47Mississippi1.11.01.00.70.60.30.1<0.1<0.1
48Nebraska1.10.80.60.40.30.2<0.1<0.1<0.1
49Alaska0.720.390.2<0.1<0.1<0.1<0.1<0.1<0.1
50South Dakota0.240.22<0.1<0.1<0.1<0.1<0.1<0.1<0.1
51North Dakota0.220.220.20.1<0.1<0.1<0.1<0.1<0.1

In the United States, 14,626 MW of PV was installed in 2016, a 95% increase over 2015 (7,493 MW). During 2016, 22 states added at least 100 MW of capacity.41 Just 4,751 MW of PV installations were completed in 2013. The U.S. had approximately 440 MW of off-grid photovoltaics as of the end of 2010. Through the end of 2005, a majority of photovoltaics in the United States was off-grid.42: p.6 43

In 2023 the total capacity deployed was 35.3 GW, which is 52% greater than the new capacity of just under 24 GW in 2022. 44

Solar PV generation

Solar photovoltaic generation in the United States45464748
YearUtility-scaleEst. distributed generation (GWh)Est. total generation (GWh)
Summer capacity (GW)Generation (GWh)Cap. factorCapacity YOY growthGenerationYOY growthPortion of renewable electricityPortion of total electricity
200460.002%0.0002%N/AN/A
200516166.7%0.004%0.0004%N/AN/A
200615-6.3%0.004%0.0004%N/AN/A
200736.7166.7%0.005%0.0004%N/AN/A
200870.87691.9%375%0.02%0.0018%N/AN/A
2009145.5157105.6%106.6%0.04%0.004%N/AN/A
2010393.442320.2%171%150.3%0.1%0.01%N/AN/A
20111,052.01,01219.0%167.7%139.2%0.2%0.02%N/AN/A
20122,694.13,45120.4%156.1%241%0.7%0.09%N/AN/A
20135,336.18,12124.5%98.1%135.3%1.56%0.2%N/AN/A
20148,656.615,25025.6%62.2%87.8%2.83%0.37%11,23326,482
201511,905.421,66625.5%37.5%42.1%3.98%0.53%14,13935,805
201620,192.932,67025.0%69.6%50.8%5.36%0.8%18,81251,483
201725,209.050,01825.6%24.8%53.1%7.29%1.24%23,99074,008
201830,120.560,23425.1%19.5%20.4%8.52%1.44%29,53989,773
201935,710.268,71924.3%18.6%14.1%9.43%1.66%34,957103,676
202046,306.286,06624.2%29.7%25.2%10.99%2.15%41,522127,588
202159,534.5111,75524.6%28.7%29.8%13.52%2.72%49,025160,779

The amount of electricity a unit is capable of producing over an extended period of time is determined by multiplying the capacity by the capacity factor. The capacity factor for solar photovoltaic units is largely a function of climate and latitude and so varies significantly from state to state. The National Renewable Energy Laboratory has calculated that the highest statewide average solar voltaic capacity factors are in Arizona, New Mexico, and Nevada (each 26.3 percent), and the lowest is Alaska (10.5 percent). The lowest statewide average capacity factor in the contiguous 48 states is in West Virginia (17.2 percent).49

Solar power by type

Solar generation (utility-scale and estimated small-scale PV + thermal) in the United States in 202150
Summer capacity (GW)Electricity generation (GWh)Yearly growth of produced energyCapacity factor
PV (utility-scale)59,535111,75529.85%24.6%
PV (small-scale)32,97249,02518.07%17%
Thermal1,6312,924-6.67%20.5%

The table above gives an indication of the spread of solar power between the different types at the end of 2021. Capacity figures may seem smaller than those quoted by other sources and it is likely that the capacities are measured in MW AC rather than MW DC, the former of which gives a lower reading due to conversion losses during the process by which power is transformed by inverters from direct current to alternating current.

Large-scale PV facilities

See also: List of photovoltaic power stations

Large-scale photovoltaic power plants in the United States often consist of two or more units which correspond to construction stages and/or technology-improvement phases of a particular development project. Typically these units are co-located in the vicinity of the same high-capacity transmission substation, and may also feed that substation with other large PV plants which are adjacently sited but separately developed.

An objector at non-profit “Basin and Range Watch” to the Riverside East Solar Energy Zone in the California desert said in 2023 that "solar plants create myriad environmental problems, including habitat destruction and 'lethal death traps' for birds, which dive at the panels, mistaking them for water ... one project bulldozed 600 acres of designated critical habitat for the endangered desert tortoise, while populations of Mojave fringe-toed lizards and bighorn sheep have also been afflicted." The same article included many other examples of how the same solar project had hurt the desert flora and fauna, according to environmentalists.51

Largest solar plants in the US
NameStateLocationCapacity

(MWdc unless stated)

OwnerYearNotes
Copper Mountain Solar FacilityNevada802 (ac)Sempra Generation SolarFive phases
Gemini Solar ProjectNevada9662024690 MWAC, with 380 MW of batteries525354
Edwards Sanborn Solar and Energy Storage ProjectCalifornia86420233,320 MWh battery storage5556
Lumina I and II Solar ProjectTexas8282024640 MWac57
Mount Signal SolarCalifornia7942020Phase 1 of 206 MWAC in May 2014. Phase 3 of 254 MWAC in July 2018. Phase 2 of 154 MWAC completed in January 2020. Total 614 MWAC58596061
Solar star I & IICalifornia34°48′58.9″N 118°24′08.2″W / 34.816361°N 118.402278°W / 34.816361; -118.402278 (Solar star I)

34°50′56.0″N 118°21′10.6″W / 34.848889°N 118.352944°W / 34.848889; -118.352944 (Solar star II)

7472015579 MWAC, was world's largest when completed.626364
Prospero Solar I and IITexas7102021550 MWAC65
Westlands Solar ParkCalifornia672 (ac)2023Solar park, up to 2000 MWAC when completed66
Frye Solar Power PlantTexas6372024500 MWac67
Roseland SolarTexas6402023500 MWac68
Atkina Solar Power PlantTexas6312024500 MWac69
Spotsylvania Solar Energy ProjectVirginia617202170
Taygete SolarTexas6022023459 MWac, built in two phases - Taygete I of 255 MWac and Taygete II of 204 MWac
Desert Sunlight Solar FarmCalifornia33°49′33″N 115°24′08″W / 33.82583°N 115.40222°W / 33.82583; -115.40222 (Desert Sunlight Solar Farm)550 (ac)2015Phase I of 300 MWAC completed 2013. Phase II to final capacity completed January 2015.71727374
TopazCalifornia35°23′00″N 120°04′00″W / 35.38333°N 120.06667°W / 35.38333; -120.06667 (Topaz)585.92014550 MWac75767778
Mesquite Solar projectArizona33°20′N 112°55′W / 33.333°N 112.917°W / 33.333; -112.917 (Mesquite)513 (ac)2016Up to 700 MWAC when complete. Fifth phase completed in January 202479
Oberon Solar ProjectCalifornia5002023250 MW battery storage80
Roadrunner Solar ProjectTexas497201981
Daggett SolarCalifornia4822023280 MW of energy storage82
McCoy/Blythe Mesa Solar Power ProjectCalifornia33°43′00″N 114°45′00″W / 33.71667°N 114.75000°W / 33.71667; -114.75000 (McCoy)48583NextEra Energy84
Mammoth SolarIndiana4802024First of three phases to total 1,600 MW.8586
Permian Energy CenterTexas460 (ac)201987
Red-Tailed HawkTexas458202488
Texas Solar NovaTexas452202489

Distributed generation

Within the cumulative PV capacity in the United States, there has been growth in the distributed generation segment, which are all grid-connected PV installations in the residential and non-residential markets. Non-residential market includes installations on commercial, government, school and non-profit organization properties.

Between 2000 and 2013 there was 2,261 MW of residential solar and 4,051 MW non-residential solar installed.90 After years of cost reduction, the average US price per watt was between $2.51 to $3.31 in 2020 for 10 kW systems,91 and $1.05/W for utility systems.92

Another type of distributed generation implemented by a utility company was the world's first grid-connected pole-attached solar panels of Public Service Enterprise Group in New Jersey. More than 174,000 PV panels are mounted on utility poles along streets of New Jersey with aggregated capacity of 40 MW.9394

As of November 2017, there were nearly 5,500 schools in the United States that had solar installations with the total capacity of approximately 910 MW. The top five states were Nevada, California, Hawaii, Arizona, and New Jersey with 23.10%, 14.50%, 14.50%, 14.10% and 13.00% of the schools in the respective states that had installations.95 As of April 2018, there were total capacity of 2,562 MW of commercial solar installations from more than 4,000 companies in 7,400 locations. Top five corporations were Target, Walmart, Prologis, Apple, and Kohl's.96

In the United States 18% solar adopters in 2018 earned below the national median household income,97 while 30% were below the median for owner-occupied households.98 However, as prices have rapidly dropped over the last 10 years, and business models have evolved to avoid upfront costs or high credit scores, rooftop solar is trending towards reaching more and more families of all incomes.

For households that cannot access solar on their own roofs, community solar is an option. Community solar allows customers to sign up for access to a shared solar array and receive bill credits on their monthly utility bill.99 Community solar is available in about one third of the states, including MN, NJ, CA, NY, MA and CO.100

Solar cell manufacturing

The American Recovery and Reinvestment Act of 2009 created a large investment into clean energy with the purpose of developing an increase of green jobs.101 Thin-film photovoltaics (CdTe and CIGS) were chosen because they can be less expensive to manufacture than crystalline silicon-based solar cells.102

In late September 2008, Sanyo Electric Company, Ltd. announced its decision to build a manufacturing plant for solar ingots and wafers (the building blocks for silicon solar cells) in Salem, Oregon. The plant was scheduled to begin operating in October 2009 and scheduled to reach its full production capacity of 70 megawatts (MW) of solar wafers per year by April 2010. In April 2013 the plant closed its wafer slicing operation. In February 2016 the parent company, Panasonic, announced it would lay off 37% of the remaining workforce.103

In early October 2008, First Solar, Inc. broke ground on an expansion of its Perrysburg, Ohio, planned to add enough capacity to produce another 57 MW per year of solar modules at the facility, bringing its total capacity to roughly 192 MW per year. In November 2016 the company reduced the workforce in the Perrysburg plant by 20% as part of a worldwide restructuring.104 In mid-October 2008, SolarWorld AG opened a manufacturing plant in Hillsboro, Oregon. In 2016 the Hillsboro plant was the largest photovoltaic technology manufacturing plant in the Western Hemisphere. It maintains 500 megawatts of cell-manufacturing capacity and 350 MW of module-assembly capacity annually.105

Rapidly decreasing photovoltaic prices put General Electric's planned factory in Colorado on hold,106 and led to the bankruptcy of Konarka Technologies, which had expected to produce 1,000 MW of solar modules per year by 2011, and Solyndra, which defaulted on a $535 million loan guarantee, prompting Republican members of the Energy and Commerce committee to vote to cease accepting new applications to the loan program.

In September 2014, SolarCity broke ground on a solar panel manufacturing plant in Buffalo, New York. Upon its completion in 2016, it was projected to be the largest solar manufacturing facility in the Western hemisphere, with an annual manufacturing capacity of 1 gigawatt.107 However, as of 2019 the facility has not met the projections on production or job creation.108

Disposal

As cadmium, indium, selenium, nanoparticles, and other harmful elements are used in PV solar technology the disposal is similar to the outcomes of electronic waste.109110 This can present possible risks for the workers disposing the product.111112

A 2021 study by Harvard Business Review indicates that, unless reused, by 2035 the discarded panels would outweigh new units by a factor of 2.56. They forecast the cost of recycling a single PV panel by then would reach $20–30, which would increase the LCOE of PV by a factor 4. Analyzing the US market, where no EU-like legislation exists as of 2021, HBR noted that without mandatory recycling legislation and with the cost of sending it to a landfill being just $1–2 there was a significant financial incentive to discard the decommissioned panels. The study assumed that consumers would replace panels halfway through a 30-year lifetime to make a profit.113 However prices of new panels increased in the year after the study.114 A 2022 study found that modules were lasting longer than previously estimated, and said that might result in less PV waste than had been thought.115 In 2023 the EPA considered regulations.116

Concentrated solar power (CSP)

History

One of the first applications of concentrated solar was the 6 horsepower (4.5 kW) solar powered motor made by H.E. Willsie and John Boyle in 1904.117

An early solar pioneer of the 19th and 20th century, Frank Shuman, built a demonstration plant that used solar power to pump water using an array of mirrors in a trough to generate steam. Located in Philadelphia, the solar water pump station was capable of pumping 3,000 US gallons (11,000 L) an hour at that latitude, corresponding to 25 horsepower (19 kW).118 After seven weeks of testing the plant was disassembled and shipped to Egypt for testing as an irrigation plant.119

In 1973, Karl Böer of the University of Delaware built an experimental house called the Solar One, the first house to convert sunlight into energy.120

Solar One, the first pilot solar power tower design was completed in 1981. The parabolic trough Solar Energy Generating Systems opened its first unit in 1984, the first major solar thermal plant in the world.

Selected list of plants

Main article: List of solar thermal power stations

The United States pioneered solar tower and trough technologies. A number of different solar thermal technologies are in use in the U.S.:

The rapidly falling price of PV solar had led to several projects being abandoned or converted to PV technology.130 Blythe Solar Power Project converted to a PV project, Rice Solar Energy Project was put on indefinite hold, Palen Solar Project tried to convert to PV but its permits were denied,[needs update] Hidden Hills Solar Project was suspended in 2013 and later canceled.131132 No major CSP plants remain under construction in the United States.

NameStateLocationCapacity

(MW)

Annual

Generation

(GWh)

OwnerTypeNotes
Solana Arizona32°55′N 112°58′W / 32.917°N 112.967°W / 32.917; -112.967 (Solana)280792 (2019)Arizona SolarSolar Thermal

(Parabolic Trough)

Largest solar thermal plant in the US and largest with molten salt energy storage133

CSP capacity and generation

In 2013, Abengoa's 280 MWac of CSP project was brought online in the 3rd quarter. Genesis Solar's first phase of 125 MWac was brought online in the 4th quarter of 2013, bringing the total to 410 MWac for the year and 918 MWac total. Ivanpah was completed during the first quarter of 2014. The world's largest CSP power plant is 392 MWac, and brings the total to 1,310 MWac. The 110 MWac Crescent Dunes project started commissioning during February. The 250 MWac Mojave solar, second phase 125 MWac Genesis Solar, and Tooele Army Depot Solar's 1.5 MWac power plant are all expected to come online in 2014.134 A total of around 9.5 GW of solar PV and CSP capacity is expected to come online in 2016, more than any other source.135

United States grid-connected CSP capacity by state (MW)136137138139140141142143144
United StatesCaliforniaArizonaFloridaNevadaColoradoNew MexicoHawaii
19821010000000
19831010000000
19841010000000
19852424000000
19865454000000
1987114114000000
1988144144000000
1989204204000000
1990284284000000
1991364364000000
1992364364000000
1993364364000000
1994364364000000
1995364364000000
1996364364000000
1997364364000000
1998364364000000
1999354354000000
2000354354000000
2001354354000000
2002354354000000
2003354354000000
2004354354000000
2005354354100000
2006355354100000
20074193541064000
20084193541064000
20094303641064000.8
20105073642.57564100.8
2011516364.54.875642.460.8
2012546364.53.7756431.860.8
2013918489.5283.7756431.860.8
20142,2001256.5283.7756431.860.8
20152,3101256.5283.77518431.860.8
20161,811283.775184
20171,811283.775184
20181,811283.775184
20191,701283.775184
20201,701
20211,701
20221,701
  • U.S. total numbers from 2016 onwards include utility-scale capacity only.
Solar thermal electricity generation in the United States145146147148149
YearSummer capacity (GW)Electricity generation (GWh)Capacity factorYearly growth of generating capacityYearly growth of produced energyPortion of renewable electricityPortion of total electricity
20045690.16%0.014%
2005535-6%0.15%0.013%
2006493-7.9%0.13%0.012%
2007464.859620.9%0.17%0.014%
2008464.87880%32.2%0.21%0.019%
2009473.07351.7%-6.7%0.18%0.019%
2010473.07890%7.3%0.18%0.019%
2011471.5806-0.2%2.2%0.16%0.02%
2012476.087623.6%0.8%8.7%0.18%0.022%
20131,286.491517.4%170.2%4.5%0.18%0.023%
20141,666.72,44118.3%29.6%166.8%0.45%0.06%
20151,757.93,22721.7%5.5%32.2%0.59%0.079%
20161,757.93,38422.1%3.6%4.9%0.56%0.083%
20171,757.93,26921.8%0%-3.4%0.48%0.081%
20181,757.93,59223.6%0%9.9%0.51%0.086%
20191,758.13,21821.2%0%-10.4%0.44%0.078%
20201,747.93,13320.6%-0.6%-2.6%0.4%0.078%
20211,747.92,92420.5%0%-6.7%0.35%0.071%

Government support

A complete list of incentives is maintained at the Database of State Incentives for Renewable Energy (DSIRE).150 Most solar power systems are grid connected and use net metering laws to receive compensation for electricity that is not consumed on site and exported to the grid. New Jersey leads the nation with the least restrictive net metering law, and California leads in total number of homes which have solar panels installed. Many were installed because of the million solar roof initiative.151 In some states, such as Florida, solar power is subject to legal restrictions that discourage its use.152

Federal

The federal tax credit for solar was extended for eight years as part of the financial bail out bill, H.R. 1424, until the end of 2016. It was estimated this would create 440,000 jobs, 28 gigawatts of solar power, and lead to a $300 billion market for solar panels. This estimate did not take into account the removal of the $2,000 cap on residential tax credits at the end of 2008.153[needs update] A 30% tax credit is available for residential and commercial installations.154155 For 2009 through 2011 this was a 30% grant, not a tax credit, known as the 1603 grant program.156

The federal Residential Energy Efficient Property Credit (income tax credit on IRS Form 5695) for residential PV and solar thermal was extended in December 2015 to remain at 30% of system cost (parts and installation) for systems put into service by the end of 2019, then 26% until the end of 2020, and 22% until the end of 2021. It applies to a taxpayer's principal and/or second residences, but not to a property that is rented out. There is no maximum cap on the credit, and the credit can be applied toward the Alternative Minimum Tax, and any excess credit (greater than that year's tax liability) could be rolled into the following year.157158 The solar industry and utilities clashed extensively on renewal, but the solar industry prevailed.159[unreliable source?] The renewal was expected to add $38 billion of investment for 20 GigaWatts of solar.160

In 2022, the Inflation Reduction Act enhanced the investment tax credit available for solar; the base was set a 6% with a 5x multiplier if the project satisfied certain prevailing wage and apprenticeship requirements. Additional 10-20% bonuses were available depending on whether the project used doemstic content in the facility, or located the project in a certain community. Additionally, the Inflation Reduction Act enabled solar projects to claim a production tax credit in lieu of the investment tax credit (similar to wind).161

Section 1603 grants

President Obama's stimulus bill in 2009 created a program known as Section 1603 grants. The program was designed to give federal grants to solar companies for 30 percent of investments into solar energy. Since 2009, the federal government has given solar companies $25 billion in grant money through this program. The Section 1603 grant program expired in 2011.162

On June 9, 2016, Senator Orrin Hatch requested from Department of Treasury, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) details about how companies use Section 1603 grants and tax credits. In March 2016, Hatch asked the IRS and Treasury Department to demonstrate that the agencies use safeguards and coordinate with each other when reviewing applications for Section 1603 grants.163

Solar America Initiative

The United States Department of Energy (DOE) announced on September 29, 2008 that it would invest $17.6 million, subject to annual appropriations, in six company-led, early-stage photovoltaic (PV) projects under the Solar America Initiative's "PV Incubator" funding opportunity, designed to fund prototype PV components and systems with the goal of moving them through the commercialization process by 2010 and make it cost-competitive with conventional forms of electricity by 2015 (grid parity).164165

SunShot Initiative

The SunShot Initiative aimed to reduce the cost of solar power by 75% from 2010 to 2020. The name was based on "Moon shot", John F. Kennedy's 1961 target of reaching the Moon within the decade.166

Goals:

  • Residential system prices reduced from $6/W to $1.50/W
  • Commercial system prices reduced from $5/W to $1.25/W
  • Utility-scale system prices reduced from $4/W to $1.00/W (CSP, CPV and PV)

Trump administration

In 2018, as part of a trade war between the U.S. and China, US President Trump imposed tariffs on imported solar cells.167 The push for tariffs to protect American manufacturing and jobs in the solar power industry began in April 2017, when a bankrupt Georgia-based solar cell maker filed a trade complaint that a flood of cheap imports put them at a severe disadvantage. In response, the President imposed 30% tariffs of solar imports in January 2018.168 The solar industry was one of the fastest growing in the United States, employing more than 250,000 people as of 2018.169

On one hand, these tariffs forced the cancellation or scaling down of many projects and restricted the ability of companies to recruit more workers.170 On the other hand, they had the intended effect of incentivizing domestic manufacturing. Many solar power companies increased automation, to become less dependent on imports, especially from China.171 Some analysts believed Trump's tariffs had a clear impact. Without them, the manufacturing capacity for solar cells in the United States would likely not have increased significantly, from 1.8 gigawatts in 2017 to at least 3.4 gigawatts in 2018, they argued. However, because of the increasing reliance on automation, not that many new jobs were created, while profits flowed to other countries, as many firms are foreign.172

By 2019, the solar power industry had recovered from the initial setbacks due to Trump's tariffs, thanks to initiatives from various states, such as California.173 It received considerable support from the Department of Energy. The National Renewable Energy Laboratory (NREL) launched the "American-made Solar Prize" competition in June 2018 and handed out tens to hundreds of thousand of dollars in cash prizes for the most promising solar cell designs.174 Prices of solar cells continue to decline.175

Biden administration

In 2022, President Biden extended the decreased 15% tariff on solar panels another four years.176 The Inflation Reduction Act increased tax credits available to solar projects and provided funding to states and organizations for solar installations. The Inflation Reduction Act also included tax credits for the manufacture of components for solar facilities.177

State and local

State initiatives

  • Governor Jerry Brown signed legislation requiring California's utilities to get 50 percent of their electricity from renewable energy sources by the end of 2030.178
  • The San Francisco Board of Supervisors passed solar incentives of up to $6,000 for homeowners and up to $10,000 for businesses.179 Applications for the program began on July 1, 2008.180 in April 2016, they passed a law requiring all new buildings under 10 stories to have rooftop solar panels, making it the first major U.S. city to do so181
  • In 2008, Berkeley initiated a revolutionary pilot program for homeowners to add the cost of solar panels to their property tax assessment, and pay for them out of their electricity cost savings.182 In 2009, more than a dozen states passed legislation allowing property tax financing. In all, 27 states then offered loans for solar projects183 (though after the conclusion of the pilot program, due to issues with Fannie Mae and Freddie Mac, Berkeley no longer offers this financing mechanism184).
  • The California Solar Initiative set a goal to create 3,000 megawatts of new, solar-produced electricity by 2016.
  • New Hampshire had a $3,750 residential rebate program for up to 50% of system cost for systems less than 5 kWp ($6,000 from July 1, 2008 until 2010).185
  • Louisiana had a 50 percent tax credit up to $12,500 for the installation of a wind or solar system.186187
  • New Jersey law provides new solar power installations with Solar Renewable Energy Certificates and exemptions from the 7% state sales tax and any increase in property assessment (local property tax increases), subject to certain registration requirements.188189
  • Massachusetts has multiple incentives to encourage solar power. New MA residential solar arrays are eligible for a 15% State tax credit up to $1000, a solar Sales Tax exemption, and a solar Property Tax exemption.190 The Solar Massachusetts Renewable Target (SMART) Plan was also available to solar installations until 2022 based on the customer's utility.191
Solar power in Puerto Rico

Since the devastating Hurricane Maria in 2017, the adoption of solar energy with battery storage in Puerto Rico has grown rapidly.192 The self-governing Caribbean archipelago and island is an American unincorporated territory with an estimated population of 3,205,691.193 As of June 2024, approximately 95,000 households have installed grid-tied solar energy systems with battery storage.194 This represents about 80% of the total distributed solar installations on the island.195 Since September 2017, more than 107,000 customers have installed these systems, with the vast majority including battery backup.196 According to a June 2024 report by the Institute for Energy Economics and Financial Analysis (IEEFA), the archipelago was installing about 4,000 new solar systems per month.197 Rooftop solar accounts for 7% of total electricity consumption in Puerto Rico as of June 2024.198 Puerto Rico's chronically unstable electrical grid199 has driven a remarkable surge in distributed solar installations, with nearly 10% of households now equipped with grid-tied solar systems that provide critical backup during frequent outages. This trend is expected to continue, supported by federal funding programs, including a $500 million effort by the Energy Department to install systems for vulnerable households.200201

In late 2023, Puerto Rico launched its virtual power plant (VPP). Virtual power plants (VPPs) usually combine a significant number of distributed energy resources (DER). As of November 2024, 7,000 homes had enrolled.202

In early 2024, a conflict arose in Puerto Rico over a law supporting solar energy. Act 10, passed in 2023 and signed in January 2024, extended net metering for new home solar systems until 2031. Net metering allows solar panel owners to sell excess electricity back to the grid, making solar more affordable. However, the Financial Oversight and Management Board (FOMB), a federal entity overseeing Puerto Rico's finances, opposed this law. They sent letters threatening to overturn Act 10, claiming it conflicted with their fiscal plans. Twenty-one Members of Congress, including Puerto Rico's representative and prominent politicians like Alexandria Ocasio-Cortez and Bernie Sanders, wrote a letter supporting net metering. Fifteen environmental and community organizations asked President Joe Biden to appoint new FOMB members who would protect solar energy in Puerto Rico. According to the 2024 report, despite widespread agreement among policymakers, experts, and institutions that renewable energy sources are crucial for Puerto Rico's power grid "those in charge of day-to-day operation are pursuing aggressive plans for natural gas expansion."203

Under the Biden administration, the DOE's Loan Programs Office lent over $1bn towards the development of utility scale solar facilities on the island.204

Feed-in tariffs

Experience has demonstrated that a feed-in tariff is both the least expensive and the most effective means of developing solar power. Investors need certainty, which they receive from a feed-in tariff.205 California enacted a feed-in tariff which began on February 14, 2008.206207 Washington state has a feed-in tariff of 15 ¢/kWh which increases to 54 ¢/kWh if components are manufactured in the state.208 Hawaii,209 Michigan,210 and Vermont211 also have feed in tariffs.212 In 2010, the Federal Energy Regulatory Commission (FERC) ruled that states were able to implement above-market feed-in tariffs for specific technologies.213214

In 2012 the U.S. Department of Commerce placed a 31% tariff on solar cells made in China.215 In 2018, the Trump administration placed a 30% tariff on all imported solar equipment.216

Solar renewable energy certificates

In recent years, states that have passed Renewable Portfolio Standard (RPS) or Renewable Electricity Standard (RES) laws have relied on the use of solar renewable energy certificates (SRECs) to meet state requirements. This is done by adding a specific solar carve-out to the state Renewable Portfolio Standard (RPS). The first SREC program was implemented in 2005 by the state of New Jersey and has since expanded to several other states, including Maryland, Delaware, Ohio, Massachusetts, North Carolina and Pennsylvania.217

An SREC program is an alternative to the feed-in tariff model popular in Europe. The key difference between the two models is the market-based mechanism that drives the value of the SRECs, and therefore the value of the subsidy for solar. In a feed-in tariff model, the government sets the value for the electricity produced by a solar facility. If the level is higher, more solar power is built and the program is more costly. If the feed-in tariff is set lower, less solar power is built and the program is ineffective. The problem with SRECs is a lack of certainty for investors. A feed-in tariff provides a known return on investment, while an SREC program provides a possible return on investment.

Power purchase agreements

In 2006 investors began offering free solar panel installation in return for a 25-year contract, or power purchase agreement, to purchase electricity at a fixed price, normally set at or below existing electric rates.218219 By 2009 over 90% of commercial photovoltaics installed in the United States were installed using a power purchase agreement.220 Approximately 90% of the photovoltaics installed in the United States is in states that specifically address power purchase agreements.221

New construction mandates

In March 2013, Lancaster, California became the first U.S. city to mandate the inclusion of solar panels on new homes, requiring that "every new housing development must average 1 kilowatt per house."222

Generation (PV and CSP)

Utility-scale solar generation in the United States (GWh)
YearNRELtotalEIA utiltotalEIA util% of totalJanFebMarAprMayJunJulAugSepOctNovDec
19965210.02%
19975110.01%
19985020.01%
19994950.01%
20008044930.01%
20018225430.01%7133139819192856521144
20028575550.01%11244446589686755331284
20039295340.01%13185060689162625636144
20041,0205750.01%13115357828882736134158
20051,1455500.01%8133757818771756037122
20061,3125080.01%13203352717062835432163
20071,7186120.01%13194854848486756848233
20082,2088640.02%163675949912811110593602919
20092,9228910.02%730789911010312111695684021
20104,5051,2120.03%103376112153176161156138757744
20117,4541,8180.04%4085122164191223191229186159107121
201212,6924,3270.11%95135231319462527509462458431347349
201321,0749,0360.22%310433619667753871829944949988824850
201432,55317,6910.43%7518351,3171,4871,7501,9231,7881,8791,8321,7171,3801,032
201544,29624,8930.61%1,1551,4842,0722,3792,5042,5582,6272,7882,2171,9101,7301,570
201652,83336,0540.88%1,4862,2422,6172,8803,4253,4733,9453,9693,6353,1912,7672,424
201777,09753,2871.32%2,3242,7514,5144,9075,7856,1155,5695,3695,0594,6503,2093,035
201896,14763,8251.53%3,3193,8965,0566,0576,8497,4156,7556,6955,9614,9703,7433,110
2019107,27571,9371.74%3,5803,8365,8996,7527,1627,9718,1337,8776,8176,0934,3643,453
2020132,63189,1992.23%4,4595,5616,3507,9219,6539,65410,6109,3157,7327,0855,7675,091
2021164,422115,2582.8%5,5596,3309,29610,89212,45712,19712,19211,96711,2149,2687,7956,091
2022205,074143,7923.4%7,8229,02711,69413,40215,12016,05215,76514,50213,28611,9428,4036,777
2023238,937165,5303.96%7,9069,43512,21315,06217,28117,83418,89417,74415,58314,12110,4469,113
2024303,167218,5385.08%9,74012,48915,84019,10122,20924,29424,20024,05520,26419,52513,87812,942
202542,96331,7304.63%15,35516,37423,06726,612
Last entry, % of total3.82%4.83%6.91%8.28%6.42%6.23%5.62%5.68%5.64%5.84%4.28%3.58%

Source: NREL,223224 EIA;225226227228229 230 NREL includes distributed generation, EIA, including the monthly data above, includes only utility-scale generation. "EIA util % of total" is the percentage of all electricity produced at utility-scale facilities that is generated by utility-scale solar.

See also

US renewables:

General:

International:

Further reading

Wikimedia Commons has media related to Solar power in the United States.

References

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