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Solar in the States

 The Council of State Governments

CAPITOL RESEARCH

ENERGY & ENVIRONMENT 

 THE COUNCIL OF STATE GOVER NMEN TS

The solar industry is growing rapidly inthe United States. With more than 7,000megawatts of capacity installed in 2014,the total installed capacity in the countryclimbed to over 20,000 MW, enough topower more than 4 million American

households.1 

Types of Solar Installation• Solar power in the United States includes both

centrally located utility-scale solar power plantsand local distributed generation, which predomi-nantly comes from rooftop photovoltaics.

• There are three main types of solar technology:photovoltaics, which convert sunlight directlyinto energy; concentrating solar power, or CSP, autility-scale technology that uses mirrors or lensesto focus a large amount of heat into one area; and

heating and cooling systems, which use the sun’sthermal energy to provide hot water, pool heating,space heating and cooling for residences, busi-nesses and industrial facilities.2 

State Leaders in Solar Installation3 • In 2014, California installed 4,316 MW of solar

energy capacity, more than any other state andmore than the solar energy capacity installed inthe entire country from 1970-2011. California alsoleads the way in cumulative installed solar capacitywith 9,977 MW as of 2014.

• In watts per person, Hawaii has more solar energy

capacity per capita than any other state with 321.Arizona is close behind with 316 watts per person.

• Four states obtained 100 percent of new electric-ity capacity from solar in 2014: Arizona, Vermont,Tennessee and Nevada.

 Jobs in the Solar Industry areGrowing Rapidly4 • Approximately 174,000 people work in the U.S.

solar industry, with solar jobs existing in all 50states.

• Over the past five years, the solar industry has seenan 86 percent increase in employment.

• Demand side sectors, such as installation, sales,distribution and project development, make up 76percent of employment in the solar industry. Thus,

 job growth in the solar industry is strongly tied tocontinued increases in capacity.

• The solar industry is expected to add 36,000 addi-tional employees in 2015.

• The top 10 states for solar jobs are California(54,700); Massachusetts (9,400); Arizona (9,200);

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New York (7,280); New Jersey (7,200); Texas(6,970); Nevada (5,900); North Carolina (5,600);Florida (4,800) and Ohio (4,300).

• Nevada ranks first in the nation in solar jobs percapita.

Major Corporations are Going Solar at an

Increasing Rate• The 25 top solar producing companies installed

more than 489 MW in capacity in 2014.

• Walmart leads the way in installed solar capac-ity, with 105.1 MW, more than twice the capacityof runner-up Kohl’s, with 50.2 MW. Walmart hasinstalled more than 250 solar energy systems in theU.S., with each providing 15 percent to 30 percentof a store’s electricity.5 

• Rounding out the top ten are Costco (48.1 MW);Apple (40.7 MW); IKEA (39.1 MW); Macy’s (20.8MW); Johnson & Johnson (17.8 MW); Target (14.9MW); McGraw Hill (14.1 MW) and Staples (13.7MW).6 

• Apple recently entered into the largest solar pro-curement contract for a non-utility, agreeing to an$850 million investment that will provide 130 MWof solar power to be completed before the end of2016. The investment will provide enough electric-ity to supply all of Apple’s California stores, offices,headquarters and a data center. Apple recentlycompleted two, 20 MW installations in North Caro-lina, with a third under construction. An additional20 MW plant is being developed in Reno, Nev.7 

The Cost of Solar is Expected toContinue to Decline8 • The installed cost of grid-connected solar pho-

tovoltaic systems in the U.S. continues to rapidlydecline. In 2014, U.S. median installed costsdeclined by 9 percent for residential systems, 10

Liz Edmondson, Director of Energy & Environment Policy,

ledmondson@csg.org

1 Solar Energy Industries Association, “Solar Industry Data,” available at: http://www.seia.org/research-resources/solar-industry-data2 Solar Energy Industries Association, “Solar Technology,” available at http://www.seia.org/policy/solar-technology3 Solar Energy Industries Association, “2014 Top 10 Solar States,” available at: http://www.seia.org/research-resources/2014-top-10-solar-states4 The Solar Foundation, “National Solar Jobs Census 2014,” available at: http://www.thesolarfoundation.org/national-solar-jobs-census-2014/5 Solar Energy Industries Association, “Solar Means Business 2014: Top U.S. Commercial Solar Users,” available at: http://www.seia.org/research-resources/solar-means-business-2014-top-us-commercial-solar-users6 Id.7 Tom Randall, “What Apple Just Did in Solar is a Really Big Deal,” Bloomberg Business, Feb. 11, 2015.8 Galen Barbose and Naim Darghouth, “Tracking the Sun VIII: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United States,” Lawrence Berkley National Laboratory (August 2015).

https://emp.lbl.gov/sites/all/files/lbnl-188238_1.pdf 9 North Carolina Clean Energy Technology Center and Mesiter Consultants Group, “50 States of Solar,” (Second Quarter 2015), available at:http://nccleantech.ncsu.edu/wp-content/uploads/50-States-of-Solar-Q2-2015-final.pdf  .

percent for non-residential systems of less than 500kw, and by 21 percent for non-residential systemsgreater than 500 kw.

• These recent reductions in the installed priceof solar have been driven primarily by declinesin softs costs, such as marketing and customeracquisition, labor, permitting and inspection costs,

and system design.• Installed prices for both residential and non-res-

idential systems are based on economies of scale,with larger systems costing between 15 percent and36 percent less than smaller systems.

• Installed prices vary widely among states. Dela-ware and Texas had the lowest median installedprices, while New York had the highest. Some ofthe largest market states such as Massachusetts,New York and California, are relatively high-priced, but prices in most states are below theaggregate national median cost.

Policy Uncertainties Might Pose aChallenge for the Industry9 • On Dec. 31, 2016, the federal 30 percent invest-

ment tax credit supporting residential solar isset to expire. Installed solar capacity is expectedto decline by 57 percent if the tax credit is notextended.

• Solar rebate and tax incentives are generallydecreasing or expiring at the state level. In addi-tion, net metering caps and renewable energyportfolio standard targets are being reached. Regulators and legislators are reviewing and consideringchanges to net metering and rate design in many

states, as well.