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Despite slower growth, small rooftop solar system installations continue to increase with support from state and program incentives
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Electricity generation from small rooftop solar systems has increased nearly five fold since 2016 according to new data released by the federal Energy Information Administration.
Energy generation from small rooftop solar systems, defined as being smaller than 1 megawatt of capacity, have gone from 18,812 gigawatthours (GWh) in 2016 to 92,979 GWh in 2025. California, Arizona, Texas, Florida and New York led states in terms of how much electricity they produced from rooftop solar.
Although rooftop solar is still growing, the rate of growth has declined since 2022. In 2022, small-scale rooftop solar produced enough energy to power 5.7 million typical American homes, a ten-fold increase since 2012.
A state’s level of rooftop solar adoption depends less on how much sunlight it receives than on whether the state has policies in place that encourage rooftop solar. For example, despite having relatively less solar resources than sun-kissed southern states, New York ranks in the top five states for rooftop solar. Growth in solar capacity in New York was driven by technological improvements and state incentives. Tax credits, property tax exemptions, net metering and other incentives all play an important role in driving new solar installations.
“America needs to get to 100% renewable energy as quickly as possible,” said Johanna Neumann, Senior Director of the Campaign for 100% Renewable Energy at Environment America Research & Policy Center. “Every rooftop without solar panels is a missed opportunity to build a greener, healthier world.”
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Walmart can go big on solar. Its flat, often-sunny rooftops are a great place to accelerate solar energy.
Clean Energy Associate, Environment America Research & Policy Center
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