State policies drive US community solar growth amid national decline
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In the United States, growth in the non-utility community solar market is uneven, with a few states leading expansion while the national market contracts.
The Institute for Local Self-Reliance (ILSR) Community Solar Tracker found that New Jersey, New York, and Oregon were the only states to increase community solar capacity by more than 1% in the second quarter of 2026.
These states have established policies that require independent ownership of projects, guarantee savings for customers, and ensure reliable access to the power grid. Approximately 91% of all community solar capacity in the US is located in just ten states, demonstrating the strong link between state policies and project development. States like Maine have seen development slow after changes to their net energy billing programs. Successful programs feature long-term, predictable pricing structures, consolidated billing, and provisions to include low-to-moderate income customers.
New York added 202 MW of community solar capacity in the second quarter of 2026, a 7% increase, and compensates projects through a Value of Distributed Energy Resources (VDER) framework with 25-year contracts. New Jersey increased capacity by 17%, with a focus on allocating at least 51% of project capacity to low- and moderate-income subscribers. Oregon allows customers to choose between subscriptions or direct ownership, and sets fixed bill credit rates under 20-year contracts.
These policies provide clear benefits to developers and customers, enabling sustained growth.
