The U.S. group photo voltaic sector reached a historic milestone in late 2025, formally surpassing 10 GWDC of cumulative nationwide installations, in accordance with a new report launched by Wood Mackenzie in collaboration with the Coalition for Community Solar Access (CCSA).
Whereas the market skilled a 25% contraction in 2025 attributable to a slowdown in mature markets like New York and Maine, nationwide put in capability is predicted to rebound with 12% progress in 2026. The market put in 1,435 MW in 2025.
“Total, we count on nationwide put in group photo voltaic capability will contract by a mean of 5% yearly by means of 2030 in present state-level applications,” mentioned Caitlin Connelly, senior analyst and lead writer of the report. “The phase’s near-term progress is anchored by a robust venture growth pipeline that now exceeds 8 GW, 29% of which is reported to be below building. Builders are navigating a posh federal coverage panorama and interconnection queue backlogs to make sure their present pipelines are constructed out as effectively as doable to fulfill the start-of-construction and placed-in-service deadlines required to safe the ITC.”
In keeping with the report, the market contraction in 2025 was primarily pushed by low set up volumes in New York and Maine. This yr, capability additions in Illinois and Mid-Atlantic markets will drive nationwide annual progress.
The long-term progress of conventional group photo voltaic is more and more depending on the institution of latest state markets. Builders have already established robust pre-development pipelines for proposed applications in states together with Ohio, Iowa, Pennsylvania, and Michigan.
“Up to now in 2026, there are indicators that the worth proposition of group photo voltaic is gaining new traction throughout a number of states,” mentioned Connelly. “The passage of laws in these markets might doubtlessly add upwards of 1.5 GW by means of 2030; nevertheless, the removing of the ITC in 2030 will complicate new program design and timelines.”
An Illinois community solar project completed in 2025. Credit score: Nautilus Photo voltaic Power
Past conventional, legislation-enabled group photo voltaic applications, builders are more and more broadening their enterprise fashions to seize the rising alternative for “community-scale” sources, which the report defines as photo voltaic sources as much as 20 MW in measurement. Neighborhood photo voltaic builders are primarily focusing on Ohio and Pennsylvania for this sort of growth, partially pushed by the area’s want for brand new technology to fulfill quickly rising demand.
“Utilities are starting to prioritize ‘community-scale’ sources, which generally encompasses smaller utility-scale initiatives linked on to the distribution grid, of their long-term planning,” mentioned Connelly. “These sources have the flexibility to be deployed extra rapidly than bigger utility-scale initiatives and, significantly when paired with storage, can enhance grid flexibility and reliability.”
“Surpassing 10 GW is a landmark second for group photo voltaic and a testomony to the resilience of this business. We’ve delivered invoice financial savings to lots of of hundreds of households and companies whilst federal coverage headwinds have created actual uncertainty,” mentioned Jeff Cramer, president and CEO of CCSA. “However reaching this milestone is only the start. The enlargement of mid-scale, front-of-the-meter photo voltaic and storage into new markets indicators that our business is diversifying and adapting in methods that can serve clients and the grid for many years to come back. The pipeline is powerful and the states stepping as much as create new applications are proving that group and distributed clear power stays one of the crucial compelling instruments we’ve got for placing inexpensive, accessible energy inside attain of everybody.”
Subscriber acquisition prices contracted 12% from 2024 on common throughout all buyer segments. Reducing subscriber acquisition prices has grow to be a spotlight for builders trying to optimize venture income post-ITC removing. Regardless of state-specific market challenges, Wooden Mackenzie expects common prices will proceed to say no step by step by means of 2030 as a result of wider adoption of consolidated billing and digital advertising instruments. LMI subscribers stay the most costly to amass at $100/kW.
The subscription administration panorama can also be seeing fast consolidation. In February 2026, Perch Energy acquired the platform Solstice, following Perch’s earlier merger with Arcadia. As of the top of 2025, 4 main subscription administration platforms and vertically built-in builders handle 55% of complete operational group photo voltaic capability.
As of the top of 2025, cumulative group photo voltaic installations complete 10.1 GW. Wooden Mackenzie has developed high-case and low-case situations to seize market uncertainties:
- Excessive case: A 16% uplift to the bottom case five-year outlook by means of favorable state coverage modifications and environment friendly interconnection reform, including round 1.2 GW
- Low case: A 14% contraction attributable to complicated tax credit score qualification tips and restricted state intervention, lowering outlook by round 1 GW
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