Community solar is not inherently part of energy deregulation, but it frequently operates within deregulated frameworks to provide consumers with more choices. While they share the goal of increasing consumer options, they are distinct regulatory concepts:
Energy Deregulation: This allows customers to choose their electricity supplier (the company that buys or generates power) while the utility still delivers it.
Community Solar: This allows customers to subscribe to a specific solar project and receive credits on their utility bill for the power it produces, regardless of whether their state's energy market is deregulated or regulated.
Key Intersections as of 2026
Availability: You do not need a deregulated market to have community solar. As of 2026, many states with regulated markets (like Minnesota and Colorado) have robust community solar programs enabled by specific state legislation.
Combined Benefits: In deregulated states (like Maryland or New York), consumers can often "stack" benefits by choosing a clean energy supplier and subscribing to a community solar project to further reduce their carbon footprint.
Alternative in Regulated Markets: In states without deregulation, community solar is often the only way for renters or homeowners with shaded roofs to access clean energy benefits directly.
Current Market Status (January 2026)
Enabling Legislation: Currently, 24 states and D.C. have passed specific legislation that mandates or encourages community solar.
Project Growth: The U.S. community solar market reached over 9.4 GW of total installed capacity by late 2025, with another 6.8 GW projected over the next five years.
Regulatory Shifts: Some federal incentives, such as the residential solar tax credit, expired at the end of 2025, which has shifted more focus onto state-level community solar programs to maintain clean energy momentum.
