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Where Is it Profitable to Harness Solar Energy in the US?

Where Is it Profitable to Harness Solar Energy in the US?

Sustainable Investing

The Most Promising States for Investing in Solar Energy

Ecological preservation and the conservation of natural resources are far from new in the modern world but remain highly relevant. A key solution to address these issues is the transition to alternative energy sources. Solar energy extraction is gaining popularity in all progressive countries, including the United States.

Source: Statista

In 2022, America ranked second in the world regarding installed solar photovoltaic capacity, trailing behind China. However, from 2021 to 2050, solar photovoltaic energy production in the United States is predicted to increase by more than 10 times.

Impressive statistics, aren’t they? So, perhaps it’s time for you to explore the US solar companies catalog – the leading solar energy providers. This material will show the most economically viable states for investing in urban solar energy based on data from the Solar Energy Industries Association.

Criteria for Evaluating the Feasibility of Investing in Solar Energy in the US

Two primary factors enable an unbiased evaluation of each state’s potential in solar energy production and help identify the locations most conducive to its utilization.

States With Existing Solar Panels

This is a list of locations with reliable infrastructure and high solar power, which determines the success of investing in solar energy. Typically, the environment in such states has favorable conditions for efficient photovoltaic generation.

States With Financial Incentives

In some jurisdictions, authorities offer tax incentives, generous discounts, and funds to stimulate solar energy production. This allows to installation and use of solar panels with lower initial investments, even if the state is in the process of increasing overall solar capacity.

Solar energy companies in the US also consider these criteria, offering the most advantageous options for their clients.

Top 10 Most Promising States for Investing in Solar Energy

The Solar Energy Industries Association has published a report showcasing the largest states by cumulative installed solar capacity.

Source: SEIA

  1. California

The state tops the list of the most economically advantageous for harnessing solar energy, given its 300 days of sunshine or nearly sunny conditions, which are highly conducive to such endeavors.

US solar energy companies share the same opinion, as Solar Systems Reviews indicates, specifically about California.

Furthermore, solar energy is a rapidly growing business in the Golden State, and in 2023, it attracted over $90.6 billion in investments. The state authorities have introduced encouraging bonuses, attractive tax incentives, and exemptions from property taxes for residents installing solar panels on their homes.

  1. Texas

In addition to having its energy system, the Lone Star State is known for ranking second in solar energy production metrics. The state’s contribution to solar energy is a total investment of $21.9 billion. Thanks to this, around 2 million homes are powered, constituting 4.9% of electricity from solar systems.

With more than 617 US solar panel manufacturers in the state, the climate specifics of Solarcity El Paso and the capacity of the solar power Houston, Texas, are potentially lucrative for further solar energy development.

  1. Florida

The Sunshine State boasts around 1,195,212 households operating on solar electric power, making up almost 6% of total electricity production. The state has over 10,000 MW of installed solar capacity and continues to invest in the industry.

Approximately 461 solar companies operate in the sunniest cities in Florida, driving the growth of the urban solar energy industry to maximize its potential. Special expectations for development in this direction are placed on the Orlando solar energy system.

  1. North Carolina

In 2022-2023, the state demonstrated an impressive leap in the amount of solar energy produced, securing the honorable fourth place among the top ten. The state’s investments in solar power amounted to $11.3 billion, providing electricity to almost a million households.

The solar industry’s growth is attributed to the Renewable Energy Portfolio Standard (REPS) and the state’s strong regulatory policies. About 240 companies contribute to producing urban solar energy, adapting the conditions for investing in solar energy projects individually for each client.

  1. Arizona

The state receives abundant sunlight, making it an excellent location for a rapidly developing solar industry. Despite public debates and conflicts in the market regarding incentives for solar development, Arizona has invested $16.5 billion.

In the coming years, this is expected to boost the growth of solar installations. Approximately 368 urban solar energy service providers offer various conditions for solar power investing in Arizona.

  1. Nevada

Approximately 15% of electricity generation in the state comes from solar energy. Nevada’s Clean Energy Program, which encourages investing in solar farms, is responsible for this success.

This has also significantly impacted the state’s economy, with many local companies deciding to join the solar industry. Around 84 companies provide such services, making choosing a reliable US solar supplier in Nevada easy.

  1. Georgia

The state’s major corporations, alongside utility companies, have invested funds in urban solar energy for many years. Georgia authorities have incentivized homeowners to install solar modules on their roofs. Therefore, a federal solar energy tax credit (ITC) allows for saving 26% of the total cost of solar panels.

Another advantage of investing in solar energy in the US, specifically in Georgia, is the Clean Energy Program, which allows the sale of excess unused electricity back to the grid.

  1. New Jersey

With approximately 4,411 MW of installed solar capacity, the state is sufficient to power around 705,165 households, which is more than 6% of total electricity production.

Notably, New Jersey hopes to popularize alternative energy sources among its residents. This is evident in federal incentives and the implementation of the Clean Energy Program.

  1. Virginia

Many national parks and dynamic landscapes make the state promising for harnessing sustainable resources like solar energy. Despite a relatively small installed solar capacity of 4,286 MW, Virginia powers 476,108 homes.

Solar companies, numbering around 220 in the state, offer enticing conditions, not to mention the 42% decrease in the cost of such energy over the last 10 years!

  1.  New York

The Big Apple rounds out the list of promising states for solar energy production. The installed solar panel capacity of 4,937 MW is sufficient to power 870,361 homes.

New York’s significant solar potential and federal policies encouraging investments in urban solar energy will likely increase electricity production in the foreseeable future.

As for the other states not in the top ten, for example, 176 solar companies in Minnesota consider the state quite promising and offer the best conditions and reasonable panel installation prices.

The same applies to Black Rock solar opportunities. For residents of North Dakota, solar energy prices have dropped by 42% over the last decade. Therefore, the best solar companies in North Dakota are making considerable efforts to promote the adoption of solar energy among the local population.

Is Investing in Solar Panels Worth It?

Solar energy offers several advantages compared to traditional energy sources, making it a viable option for businesses and households. Achieving 10% solar power in U.S. electricity by 2030 is crucial for climate stability, clean air, and a sustainable economy.

Source: Environment America

Here are the most distinctive benefits of solar energy:

  1. Significant cost savings on electricity: Urban solar energy production allows businesses and homeowners to save on bills as solar panels generate energy from sunlight for free.
  2. Environmental care: Solar energy production does not involve emissions of greenhouse gases into the atmosphere. This minimizes the level of carbon dioxide pollution and ensures ecological cleanliness.
  3. Increase in property value: Energy-efficient homes are becoming more desirable in the real estate market, attracting potential buyers. Therefore, homes equipped with solar panels contribute to an increase in the final property price.
  4. Reliability: In the event of power outages or any other emergencies, solar energy remains the most reliable source of electricity, especially when it comes to solar power Palm Desert, the sunny state of California.

Based on these advantages, US-made solar panels and their installation are accessible to everyone as much as possible.

Embracing Solar Power for a Sustainable Future

The United States has some of the most promising regions in urban solar energy production, which ensures the rise and gradual growth of the solar industry in the country. California, Texas, Florida, North Carolina, and Arizona are the top five states for solar energy production, with abundant sunlight, increasing demand for clean energy, and federal support.

Solar energy offers numerous benefits, including cost savings, environmental stewardship, and a reliable power supply. These advantages motivate states to invest in the ongoing growth of the solar industry, viewing it as a sustainable and competitive alternative that holds promise for the future of the energy sector.

Where Is it Profitable to Harness Solar Energy in the US?