
Why Utility Execs Hate Distributed Solar
In this 30 minute presentation to the Just Solar Coalition, Timothy Den-Herder Thomas and John Farrell explain the benefits of distributed solar, why utility companies...
Distributed solar, which can be owned by individuals, small businesses, and public entities, is turning the electricity industry upside down as individuals choose to generate their own solar power on their rooftop or through participation in community solar.
In 2024, of the 32 new gigawatts of solar capacity installed, 17% (5.4 GW) was distributed throughout communities.
Many individuals who cannot go solar themselves can subscribe to a community solar garden. These solar arrays offer the same electric bill stability and savings as rooftop solar, but operate remotely under a subscription model.
The map below illustrates the saturation of each state’s distributed (non-utility-scale) solar market, relative to state population, at the end of 2024.
Our analysis combines community solar capacity data in Colorado, Hawai’i, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York, and Oregon with the U.S. Energy Information Administration’s figures on small-scale photovoltaic capacity by state. We then use state population estimates to calculate distributed solar per capita (watts per person). The U.S. EIA did not provide data on Alabama.
In 23 states and the District of Columbia, approximately one in every 25 households now has rooftop solar (a state distributed solar saturation of more than 100 watts per capita). This is two more states than in 2023.
These states’ distributed solar landscapes changed the most since our 2023 update:
State policies like community solar support local decision-making and promote the adoption of distributed solar. Additional essential policies include net metering, simplified interconnection rules, and a renewable portfolio standard carve-out for distributed energy. We track these policies and others in our Community Power Map.
The following graphic highlights community solar saturation in the nine community solar-enabling states — Colorado, Hawai’i, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York, and Oregon — that we are able to track at this time. Community solar saturation is calculated by dividing installed community solar capacity by state population.
Community solar saturation highlights from 2024:
The graph below demonstrates the growth in community solar capacity through the end of 2024. You can learn more about which states are leading the charge in community solar through ILSR’s Community Solar Tracker.
The table below provides a summary of all state solar capacity at both distributed and utility scales. To sort the data, click on any column heading.
In 2024, Arizona (1.8 GW) joined California (39.4 GW), Texas (25.4 GW), Florida (13.8 GW) and North Carolina (7.3 GW) as the top five solar capacity states.
But Hawai’i, Maine, Massachusetts, California and Arizona have the greatest distributed solar saturation, as measured by installed distributed solar capacity per person.
Massachusetts, California, Arizona, Nevada, New York all land in the top ten for both total solar capacity and distributed solar saturation.
The map below illustrates total statewide solar capacity – including distributed, community, and utility-scale solar.
ILSR’s State(s) of Distributed Solar analysis is updated annually. For a historical snapshot, explore our archived analyses of distributed solar by state in 2023, 2022, 2021, 2020, 2019, 2018, 2017, and 2016.
For timely updates from the Energy Democracy Initiative, follow John Farrell on Bluesky or Twitter, subscribe to the Energy Democracy weekly update, and check out the Local Energy Rules podcast.
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