Solar Deployment Stars: The Top Five States of 2023

023 was a landmark year for solar energy in the United States, breaking records and reaching new heights that signal a promising future for green energy. As per the latest findings from the Solar Energy Industries Association (SEIA) & Wood Mackenzie, solar accounted for 53% of all new electricity capacity added to the grid. Nearly 800,000 American homes embraced solar or solar+storage systems, showing an amazing increase in interest. This marked the first time in 80 years that a renewable source led the way in new energy additions.

The solar industry installed an impressive 32.4 gigawatts (GW) of capacity, which is 51% more than in 2022. Last year was the biggest yet, crossing the 30 GW mark for the first time. The growth was observed across various segments, including homes, businesses, and large-scale solar projects, with each setting annual installation records. Notably, community solar installations were also very close to setting a record of their own.

This boom wasn't just because of national policies promoting clean energy but also thanks to hard work at the state level, which often doesn't get enough credit. Remarkably, 26 states, along with Puerto Rico, have now achieved at least 1 gigawatt (GW) of installed solar capacity, a significant jump from just 14 states five years ago. The spread of solar energy across the country is creating jobs, lowering electric bills, making the power grid more robust, and helping local economies grow.

Putting the spotlight on state-level efforts, SEIA has identified the top five solar states of 2023, highlighting their progress in shaping America’s energy future. Get ready to meet the solar frontrunners!

5. Ohio - The Solar Reawakening

Ohio's journey into solar energy has hit a new peak, making its way back into the top ten solar states for the first time in a decade. Even though Ohio isn't the sunniest state—with only 173 sunny days a year compared to the U.S. average of 205—it's making big strides in solar energy. In 2023, the state added 1.3 GW of new solar capacity, an impressive increase of 1,230% from the year before. This boom is mainly thanks to significant investments in large solar projects, and the trend is expected to keep growing as these projects are a perfect match for Ohio's strong farming and solar manufacturing industries.

Research from Ohio State University shows that solar power currently makes up about 1.4% of Ohio's electricity, but this is expected to rise to 10% in the next ten years as more solar facilities are being built or planned. There are several key reasons why the Buckeye State is seeing so much solar development. Firstly, it is part of a larger electric grid that includes many eastern U.S. states, some of which have strict renewable energy mandates. Solar power from Ohio can help these states meet their green energy needs. Secondly, Ohio has its own standards for renewables, which, although recently reduced, continue to support solar energy development. Lastly, there's a growing demand from businesses wanting to reduce their carbon footprint, either by using renewable energy directly or buying renewable energy credits.

Federal subsidies also play a big role by making solar projects more financially attractive, helping to lower production costs and boost private investment in solar. Despite Ohio's reputation for not being the most solar-friendly state, it offers several incentives that make solar more appealing. These include credits for generating solar power, tax breaks on equipment, benefits for feeding excess solar electricity back into the grid, and the ECO-Link Program which makes financing solar projects more affordable.

4. Colorado - The Mile-High Solar Revolution

In 2023, Colorado made a huge comeback in the solar energy scene, adding 1.6 GW of new solar power. That's almost ten times what they did the year before! Thanks to over 300 days of sunshine a year, Colorado is in a great spot to make the most of solar power. It was also one of the first states to set goals for using more renewable energy.

The big boost in solar comes with strong support from the government. Governor Jared Polis signed a major law to speed up the use of clean energy, including goals for using renewables and offering special deals for storing energy with batteries. Additionally, after a brief pause due to supply chain issues, the PV panels cost started to fall again, making it cheaper to start new solar projects.

Colorado isn't just focusing on big solar farms; it's also encouraging rooftop and community solar projects. The state's policy that credits homeowners for the solar power they add to the grid, along with tax breaks on solar equipment and property, makes solar a smart financial choice for residents. Plus, with additional incentives like Xcel Energy's solar rewards and rebates from Holy Cross Energy, it's easier than ever for Colorado homes to go solar, helping the state lead in clean energy.

3. Florida - The Sunshine State Shines Brighter

Maintaining its third-place ranking for the fifth consecutive year, Florida added a record 3.2 GW of new solar capacity in 2023. The state's conducive climate and efficient solar policies have encouraged over 50,000 Floridians to install solar systems on their homes last year alone. With a focus on cost savings and resilience, particularly in the face of tropical storms, solar power is becoming a cornerstone of Florida's energy strategy.

Environment Florida’s Research and Policy Center tracked the dramatic increase in rooftop solar power over the last decade, state by state. Florida ranks 6th in the nation for growth in small-scale solar power generation over that time. Residential solar grew by a staggering 1,106% over the last five years. Bolstered by federal incentives, no state sales tax on equipment purchases, 100 percent property tax exemption for residential renewable energy property and some local grans, rooftop solar continues to grow rapidly in the Sunshine State.

Florida's array of 57 solar-friendly programs, including tax exemptions and a robust net-metering policy, make solar installations more accessible and affordable for residents. Considering how much energy Floridians use on average, going solar can mean hefty savings over time.

But there's more work to be done. In 2023, Florida missed out on securing federal funds that could have helped low-income families afford PV systems by covering the initial price for solar panel installation. Moreover, the state hasn't yet adopted a renewable portfolio standard, a policy that would push utilities to generate or purchase a specific portion of their power from renewable sources like solar. Despite these setbacks, it's evident that Florida is on the path to becoming a leader in solar energy.

2. California - The Solar Giant Faces Challenges

As the nation's largest solar market, California plays a key role in reaching our clean energy goals by 2030. However, even with a strong addition of 6.2 GW of solar capacity in 2023, California encountered regulatory hurdles that have impacted its rooftop solar sector.

A big change came with the introduction of Net Energy Metering 3.0 (NEM 3.0) in April 2023, which shook up how solar owners are paid for the electricity they add back to the grid, aiming to increase grid reliability and support low-income ratepayers. However, these changes mean that it now takes longer—around 14 to 15 years instead of 5 to 6 years—for solar investments to pay off in the state, causing worry among residential solar customers and California solar power installers. To adapt, the market has to shift towards self-consumption, pairing solar panels with storage batteries, something that's encouraged by new incentives under the Inflation Reduction Act.

Even with these hurdles, solar remains a wise choice in California thanks to ongoing incentives like the federal Investment Tax Credit, along with tax breaks on sales and property. However, the changing rules highlight the need for fresh approaches to keep up the momentum in solar adoption.

1. Texas - The Industry's New Frontier

In 2023, Texas took the lead in the solar energy race, adding more solar capacity than any other state. With an impressive 15 GW of new solar capacity since 2021, Texas is at the forefront of America's shift towards solar power. The state's focus on energy storage and its significant energy consumption make solar panels a smart choice for homeowners in Texas.

Looking ahead, SEIA predicts that Texas will continue its leadership role, planning to add nearly 100 GW of new solar capacity by 2034. This would double the efforts of its nearest competitor, highlighting Texas's pivotal role in the solar movement.

The combination of Texas solar panel incentives and the state's high energy prices makes a strong case for choosing solar energy. The state's leading position in expanding solar capacity shows the enormous potential renewable energy has to reshape how we power our homes and businesses across the United States.

Still have questions? Watch this video about the best states to sell solar

What's Next: Solar Forecast for 2024

Looking ahead, 2024 seems to be another bright year for solar energy. The Energy Information Administration (EIA) predicts a standout year, expecting a whopping 36.4 GW of new utility-scale solar capacity to join the grid. This surge is thanks to improvements in the supply chain and the removal of certain trade barriers, highlighting solar energy’s growing significance in the American energy scene. States like Texas, California, and Florida are at the forefront of this movement, with exciting developments like Nevada’s Gemini solar project contributing to the momentum.

Looking back at 2023 and forward to 2024, it's clear that the solar energy industry is doing really well, thanks to efforts from both state and federal levels. The top five solar states of 2023 show how different strategies and initiatives are helping America become a world leader in renewable energy, preparing us for a future where our energy comes from clean, sustainable sources.

Sources:

https://www.woodmac.com/industry/power-and-renewables/us-solar-market-insight/

https://www.seia.org/blog/leading-charge-top-5-solar-states-2023

https://u.osu.edu/aede/2024/02/14/the-economics-of-solar-development-in-ohio/

https://environmentamerica.org/florida/articles/rooftop-solar-is-on-the-rise-in-florida/

https://www.eia.gov/todayinenergy/detail.php?id=61424