A new nationwide analysis of economic impact reports from across the country finds that a typical 5-megawatt community solar project—the average and most efficient size—generates $14 million in local economic activity and supports nearly 100 jobs.
WASHINGTON — A new analysis of economic impact reports from across the country shows that community solar could unlock more than $120 billion in economic activity nationwide¹—and states have only begun to tap into that potential.
As electricity demand climbs sharply due to AI data centers, electrification, and extreme weather, state leaders are facing a dual challenge: adding capacity quickly while delivering tangible economic benefits. Community solar does both. At scale, just 1 gigawatt (GW) of community solar development can support over 18,000 local jobs and generate $2.8 billion in state economic activity.
Unlike large-scale generation projects that can take a decade or more to build, community solar projects are typically online in 12 to 18 months, powered by private capital, built in the communities they serve, and designed to use existing distribution infrastructure—including fallowed farmland, rooftops, and underused industrial sites.
“This is the energy policy equivalent of finding a $100 bill on the sidewalk—if you’re a governor or a legislator and you walk past it, you’re doing your state a disservice,” said Jeff Cramer, CEO of the Coalition for Community Solar Access (CCSA). “States are running out of time and options. Community solar is fast, cost-effective, and it works. We don’t have 10 years to build our way out of this energy crunch. In some cases, we have 18 months, and community solar fits the timeline.”
Meeting the growing demand for electricity will require a diversified portfolio of new generation resources deployed across the grid—both large and small. Community solar plays a vital role in this mix, offering a fast and cost-effective way to bring new capacity online. A landmark study by Vibrant Clean Energy found that by optimizing the balance between centralized and distributed resources, we could save electricity consumers nearly half a trillion dollars by 2050.
Community solar by the numbers:
- 5 MW of community solar delivers $14 million in local economic activity and supports nearly 100 jobs;
- At scale: 18,650+ jobs and $2.8 billion in local economic impact per 1 GW of new capacity;
- More than $120 billion in potential national value if fully scaled;
- Lower electricity bills for renters, small businesses, and low- to moderate-income households; and
- Grid resilience benefits from distributed generation that avoids costly transmission expansion.
Recent independent, state-level studies from universities and research institutions show vast economic impact
- Pennsylvania could generate $1.8 billion and 11,000 jobs.2
- California stands to unlock $12 billion and 25,000 jobs.3
- Wisconsin could see $2.8 billion in local impact and 18,000 jobs.4
- Virginia’s Shared Solar program is projected to drive $5.6 billion in economic activity and 46,000 jobs.5
- Ohio could unlock $5.57 billion and 27,000 job-years from 1,750 MW of planned projects.6
- New Mexico expects $517 million and 3,760 jobs in its first program phase.7
- Washington State: 500 MW could deliver $1.76 billion, 16,521 job-years, and $76 million in state tax revenue.8
The grid can’t wait—and neither can state economies
U.S. electricity demand is expected to rise more than 20% by 2030, but utility-scale generation and transmission projects face long permitting timelines, local opposition, and constrained supply chains. Community solar, on the other hand, is nimble. Projects are often built within 12–18 months, reduce reliance on long-distance transmission, and provide immediate capacity relief in high-growth regions.
“We’re already seeing brownouts, interconnection delays, and grid-straining conditions from California to Michigan to Texas,” said Cramer. “Community solar is the only clean energy solution that can keep pace with this demand spike while delivering near-term affordability and economic stimulus.”
Broad appeal, bipartisan momentum
Currently active in 20 states including D.C., community solar has support from a wide range of coalitions—including farm bureaus, labor unions, business groups, and low-income advocates. It gives families who can’t install rooftop panels—like renters and seniors—the ability to subscribe to a shared solar project in their community and receive direct bill savings.
In states like Missouri, Iowa, Montana, Ohio, and Wisconsin, Republican-led and bipartisan bills are gaining traction in 2025 sessions. Nationally, more than 1.7 gigawatts, direct current of community solar was installed in 2024 alone, marking a 35% year-over-year increase, according to Wood Mackenzie and CCSA’s market outlook.