New York, New Jersey, Oregon, and Massachusetts demonstrate how program design drives deployment despite broader market headwinds.
The U.S. non-utility community solar sector saw its second-quarter 2026 growth heavily concentrated in a small group of states with established policy frameworks, according to data from the Institute for Local Self-Reliance Community Solar Tracker. Growth remained limited to jurisdictions featuring mature program designs that mandate independent non-utility asset ownership, guarantee ratepayer savings, and ensure clear power grid access. Outside of these markets, national deployment slowed due to regulatory obstacles, interconnection queue delays, market contractions, and legislative rollbacks, such as those affecting net energy billing in Maine. Data tracked by the National Renewable Energy Laboratory and industry reports indicate that approximately 91% of cumulative U.S. community solar capacity is located in just 10 states.
New York continued to lead the country in total capacity additions, expanding by 202 MW during the second quarter of 2026. This 7% quarterly increase made New York the only state market to accelerate its quarter-over-quarter growth rate compared to the first quarter. Managed by the New York State Energy Research and Development Authority under the NY-Sun initiative, which targets 10 GW of total solar capacity by 2030, the state's Community Distributed Generation program applies across six investor-owned electric utilities, with voluntary participation from PSE&G Long Island. Compensation is determined via the Value of Distributed Energy Resources framework, which fixes 25-year contract terms based on wholesale energy values, avoided distribution costs, locational grid relief, and environmental benefits.
New York subscriber regulations mandate consolidated billing without additional fees, cap early termination penalties at $200, and guarantee a minimum 5% bill savings rate. Subscriptions range from 1,000 kWh annually up to 100% of a customer's historic annual usage. Under the Public Service Commission's Solar for All program, households earning at or below 60% of the state median income receive direct annual electricity bill discounts of up to $180. Additionally, community solar developments exceeding 1 MW approved after April 2022 must meet state prevailing wage requirements.
New Jersey recorded the highest proportional market expansion in the nation during the second quarter of 2026, increasing total capacity by 17% as 38 MW came online. This expansion followed the transition into the permanent Community Solar Energy Program, overseen by the New Jersey Board of Public Utilities across all four of the state's investor-owned electric utilities. The program bars distribution utilities from owning or operating assets, caps project sizes at 5 MW, and prohibits development on preserved farmland or forested open space, directing construction toward rooftops, parking canopies, and brownfields.
New Jersey requires at least 51% of every project's capacity to serve low- and moderate-income households, defined as those earning 80% or less of the area median income, with income verified through self-attestation. Developers must provide subscribers a minimum 15% bill discount off credit values, which apply to pre-tax retail electricity charges for up to 20 years. Project financing is further supported by utility consolidated billing and municipal auto-enrollment options for designated affordable housing.
Oregon's Community Solar Program, established under Senate Bill 1547 and administered by the Oregon Public Utility Commission, enables customers of Portland General Electric, Pacific Power, and Idaho Power to participate in off-site solar arrays. Based on an initial capacity allocation of 161 MW—representing 2.5% of the utilities' combined 2016 retail sales—the program permits participants to choose between monthly energy subscriptions and direct equity ownership. Fixed bill credit rates are secured under 20-year contracts, with early residential rates set at $0.112 per kWh in Portland General Electric territory and $0.097 per kWh in Pacific Power territory. Individual subscribers are capped at 40% of a facility's generation, and 10% of total program capacity is reserved for households earning 80% or less of the state median income.
Massachusetts incorporates its Community Shared Solar sector directly into the Solar Massachusetts Renewable Target program rather than relying on a standalone statute. The SMART 3.0 iteration took effect in September 2025 with an initial annual capacity limit of 900 MW. Distribution utilities cannot own assets, while independent developers can construct projects up to 5 MW, or up to 10 MW on qualified brownfields and landfills. System owners receive 20 years of incentive payments, but facilities larger than 1 MW must include co-located battery storage unless constructed on sites qualifying for specific location adders.
Subscribers in Massachusetts receive Alternative On-Bill Credits based on utility basic service supply rates rather than full retail delivery rates. To compensate for lower credit values, SMART 3.0 guarantees a minimum 20% savings on credit values for standard residential subscribers and a 40% discount for low-income subscribers, while prohibiting early termination fees and permitting income self-attestation. Projects must allocate at least 40% of their capacity to low-income customers or deliver at least 15% of total generated bill credits to low-income customers free of charge.
Originally reported by pv magazine USA on Sep 14, 2026.
