Newly Added Rooftop Solar Capacity in the U.S. Reached Record High in 2022

The U.S. Energy Information Administration (EIA) announced that new small-scale solar capacity, or rooftop solar capacity, in the U.S., reached a new high in 2022. The administration estimated that 6.4 gigawatts (GW) of rooftop solar capacity was added last year, the most ever added in a single year.

Since EIA started publishing updates in small-scale solar capacity in 2014, capacity increased from a total of 7.3 GW to 39.5 GW in 2022. About one-third of all solar capacity in the U.S. is small-scale solar, defined as solar power systems with less than 1 megawatt (MW) capacity.

According to the administration, capacity from residential rooftop solar panels makes up the most of total small-scale solar capacity in the country.

“Tax credits and incentives, public policy, and higher retail electricity prices have encouraged the growth of small-scale solar capacity over the past decade. Falling solar panel costs have also played a significant role,” EIA shared on its website.

Newly installed small-scale solar is increasing particularly in California, which has the largest amount of small-scale solar (14.2 GW) in the U.S., about 36%. This can be attributed to the climate of the area as well as the state’s Building Energy Efficiency Standards (Energy Code), which requires newly constructed single-family and multifamily homes that are one to three stories to install solar panels. California also has plenty of incentives, like rebate programs and tax exemptions, that lower the average cost for homeowners to convert to solar power.

New York and New Jersey also have higher shares of small-scale solar capacity in the U.S., at 2.6 GW and 2.4 GW respectively, followed closely by Texas (2.2 GW) and Arizona (2.1 GW). But when considering small-scale solar capacity per capita, Hawaii takes the lead with 541 watts per capita. California follows with 364 watts per capita.

“A large share of Hawaii’s electricity has historically come from oil-fired power plants. These plants rely on expensive fuel imports, resulting in high electricity bills,” EIA stated. “As solar panel costs have fallen, many homes and businesses in Hawaii have added solar panels, reducing their electricity bills and helping the state work toward its target to generate 100% of its electricity from renewable sources by 2045.”

Increasing small-scale solar capacity accompanies growing utility-scale electric-generating solar capacity in the U.S. Earlier this year, EIA predicted that 54% of new electric-generating capacity in the U.S. could come from solar power. Additionally, 2023 could see the highest amount of utility-scale solar capacity to be added in a single year.