Market Intelligence
U.S. Community Solar Q3 Market Update
August 5, 2026 4 Minute
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Federal
Premium community solar projects are being allocated fast after the July 4 deadline
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Key Takeaways
CBRE’s developer network has secured tax credit eligibility for a broad pipeline of projects to maximize subscriber savings. Those projects are now being allocated quickly, and premium capacity is moving fast. Corporate subscribers that move early will likely have the widest choice of projects with a clear path to tax credit eligibility. |
The One Big Beautiful Bill (OBBB) set a July 4, 2026, deadline for solar projects to start construction and secure full tax credit eligibility. Projects that met the deadline have four years to reach commercial operation. Those that start construction after the deadline must come online by December 31, 2027, to be eligible for the tax credit, a much shorter timeline given current permitting and supply chain constraints.
Most developers in CBRE’s network began construction ahead of July 4, securing tax credit eligibility across a broad pipeline of projects. For those, the OBBB deadline is unlikely to constrain community solar project availability.
Developers are also moving quickly to allocate their grandfathered projects to customers. Projects in advanced stages of development are mostly subscribed. A broad set of projects in earlier stages of development remain available for subscriptions, though those projects have longer timelines to achieve commercial operation.
California
Legislation advances that could make community solar viable at scale in California
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Key Takeaways
AB 1813 could open a commercially viable community solar-plus-storage program in California, though it remains early in the process. |
AB 1813 advanced through the California legislature in Q2. The bill directs the California Public Utilities Commission (CPUC) to revisit the state’s community solar program after the commission’s implementation of a 2022 law, AB 2316, does not establish a viable crediting structure.
AB 1813 directs the CPUC to investigate whether community solar can qualify as a ‘load-modifying resource’ for shifting power demand away from peak hours. This new designation would allow community solar projects paired with battery storage to earn higher bill credits for delivering power during expensive evening demand hours.
The bill has cleared the Assembly and the Senate Energy Committee and now awaits a Senate Appropriations hearing in August. AB 1813 would still need a full floor vote and the Governor’s signature to become law. Even if enacted, any change to compensation would take effect only after a review from state regulators and a subsequent rulemaking.
Massachusetts
Pending legislation would lower bill credits for new community solar projects
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Key Takeaways
Community solar projects that fall on the right side of the cutoff date will retain the full bill credit value. CBRE is tracking projects in Massachusetts that can meet the new rules to maximize subscriber savings. |
Both the House and the Senate have advanced legislation to reduce bill credits for community solar projects that are already under development. The proposal would replace the current net metering credit with a lower ‘supply rate’ for most new projects, covering the utility’s supply charge only.
Which projects fall under the new credit rules will depend on a cutoff date, still to be finalized. The House would preserve today’s credits for projects that entered the interconnection queue by November 2025, while the Senate plans to go as far back as May 2025.
The final retroactive change would affect projects held in the interconnection queues for years. A conference committee is expected to reconcile the two versions, with a final bill expected in the fall.
Michigan
New bill would create a statewide community solar program
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Key Takeaways
HB 6041 is early in the legislative process, but if enacted, would open a sizable community solar market. The program would add distributed solar capacity toward Michigan’s 100% clean energy by 2040 target. |
Michigan lawmakers introduced HB 6041, the ‘ACCESS to Solar’ bill, in June. The bill would create a statewide community solar program open to all customer classes and direct the Michigan Public Service Commission to write the rules.
The bill guarantees subscriber savings of at least 10%, increasing to 20% for low-income households, and reserves at least 40% of each project’s output for low-income subscribers and service organizations.
HB 6041 is still at an early stage. It was referred to the House Energy Committee, which has not scheduled a hearing yet. Michigan’s two-year session runs through the end of 2026, and the legislature is now in recess until September.
New York
NYC offsite batteries can now provide Local Law 97 emissions reductions
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Key Takeaways
Subscribing to community BESS can provide both substantial savings and emissions reduction credits to NYC property owners subject to LL97. CBRE works with multiple Con Edison storage developers that have LL97 BESS structures suitable for building emissions reduction. |
New York’s Value of Distributed Energy Resources (VDER) remote crediting program already allows firms to save on high utility costs by subscribing to offsite battery energy storage systems (BESS) in Con Edison service territory.
In Bulletin 2025-014, the New York City Department of Buildings clarified that a BESS offtake can also earn building owners emissions reduction credits. That benefit ties directly to Local Law 97 (LL97), which limits buildings emissions. Owners of buildings that exceed their LL97 emissions limit face fines, and a BESS can reduce emissions to help with compliance.
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