U.S. Community Solar

Key Takeaways

• Near-term pipeline can meet federal tax credit deadlines. Many developers secured components and began construction in 2025 to avoid new Foreign Entity of Concern (FEOC) supply chain rules. Projects starting construction before July 4, 2026, can secure a four-year window to qualify for tax credits.
• Illinois doubles community solar capacity and expands storage rebates. The state offers 900 MW of community solar awards for 2025–26. The recently passed Clean and Reliable Grid Affordability Act (CRGA) will pay $250/kW for community solar and $250/kWh for projects that add storage, enough to cover most battery system costs.
• Ohio’s proposed 1,500 MW program restricts corporate participation. HB 303 passed the Ohio House with bipartisan support but restricts participation by businesses that consume over 700,000 kWh annually or operate in multiple states. Senate action is expected in early 2026 and companies with Ohio load can weigh in during the legislative review process.
• Legal challenges and policy shifts reshape opportunities in Maine and Pennsylvania. Over 100 developers sued to block Maine’s LD 1777 law, which cuts compensation for existing projects. This can create openings for corporate buyers to secure subscriptions as developers seek high creditworthy subscribers to restructure project financials. In Pennsylvania, HB 504, which establishes community solar, could advance given the governor announced plans to prioritize energy policy in 2026.