The United States has enough installed solar capacity to power more than 50 million homes, according to the Solar Energy Industries Association (SEIA). During the second quarter of 2026, the country added 11.4 gigawatts of solar capacity, a 45% increase over the same period in 2025. Utility-scale projects accounted for most of that growth, while battery storage and transmission upgrades are helping utilities integrate additional solar power into the electricity grid.
California and Texas remain the country’s largest solar electricity producers, while Florida, Arizona, and North Carolina are expanding their generating capacity. Nevada is investing in transmission infrastructure to move electricity between the northern and southern parts of the state. These six states are among the country’s top solar markets in 2026, with existing capacity, new projects, and infrastructure investments.
Texas leads the nation in utility-scale solar electricity generation and continues to attract major new projects. According to the US Energy Information Administration (EIA), Texas accounts for approximately 40% of the utility-scale solar capacity scheduled to come online nationwide in 2026. Among its largest developments is the Tehuacana Creek 1 Solar and Battery Energy Storage project, which is expected to add 837 megawatts of solar generation and 418 megawatts of battery storage capacity.
Texas is also expanding its transmission infrastructure to move electricity between generating facilities and population centers. Battery storage development is accelerating, with the EIA projecting nearly 13 gigawatts of new utility-scale battery capacity in the state during 2026. Residential customers can participate in solar buyback programs offered by certain electricity providers, although compensation rates and eligibility vary by utility and electricity plan.
California remains the nation’s largest producer of total solar electricity when utility-scale and smaller installations are combined. In 2025, the state generated approximately 90,103 gigawatt-hours of solar electricity. California is also testing new approaches to solar development, including Project Nexus, a $20 million pilot that installed solar panels over irrigation canals in the Central Valley. The completed installations generate electricity while researchers evaluate their potential to reduce evaporation and improve water conservation.
Battery storage is another major priority, allowing California to store electricity for use when solar generation declines. The state supports solar and storage projects through programs including the Self-Generation Incentive Program, which provides incentives for qualifying battery installations. Property tax exclusions and assistance for eligible low-income households may also reduce installation costs. However, the federal Residential Clean Energy Credit is no longer available for new residential solar systems placed in service after December 31, 2025.
Florida ranks third nationally in total solar electricity generation, supported by continued investment in utility-scale installations. Florida Power & Light and Duke Energy Florida have expanded their solar portfolios, while Jacksonville’s municipal utility, JEA, is developing the Miller and Forest Trail Solar Energy Centers. Together, the two facilities are expected to provide 125 megawatts of generating capacity, enough electricity to serve more than 22,000 households.
Florida utilities are also investing in battery storage to manage demand and improve electricity availability outside daylight hours. For residential customers, the state provides a sales tax exemption for qualifying solar equipment and a property tax exemption for the added value of eligible renewable energy installations. Net metering is available through participating utilities, although individual program requirements and compensation arrangements vary.
Arizona is one of the country’s leading solar-producing states, with large installations across its desert regions. The Eleven Mile Solar Center in Pinal County began operating in 2024 with 300 megawatts of solar generation and a battery system capable of storing 1,200 megawatt-hours of electricity. In September 2026, Salt River Project approved the development of the Marigold Energy Center near Stanfield, which is planned to include 600 megawatts of solar generation, 400 megawatts of battery storage capacity, and natural gas generation.
Arizona is also exploring ways to combine solar development with water conservation, including solar panels installed over irrigation canals on Gila River Indian Community land. Homeowners may qualify for a state income tax credit equal to 25% of eligible solar installation costs, capped at $1,000. Qualifying solar equipment also benefits from state tax provisions, while utility compensation programs offer additional options for residents who generate their own electricity.
Nevada’s extensive desert solar resources have supported some of the country’s largest photovoltaic installations. The state is also investing in transmission infrastructure through NV Energy’s Greenlink Nevada program. Greenlink West is planned to connect the Las Vegas area with Yerington, while Greenlink North will extend transmission infrastructure toward Ely. These projects are designed to improve electricity transfers between northern and southern Nevada and provide greater access to renewable energy resources.
Residential solar customers served by NV Energy can receive credits for excess electricity exported to the grid. Under the utility’s currently open Tier 4 net metering program, qualifying excess generation is credited at 75% of the applicable retail electricity rate, excluding certain charges. Nevada also offers the Nevada BRIGHT program, which helps eligible households access solar installations through leasing arrangements. State tax incentives and financing programs provide additional support for qualifying commercial solar developments.
North Carolina remains one of the Southeast’s largest solar electricity producers, with extensive utility-scale installations serving homes, businesses, and industrial customers. Solar development is increasingly accompanied by investments in energy storage and grid resilience. In 2025, the North Carolina Department of Environmental Quality announced a $5 million Clean Energy Microgrid Initiative to support permanent and mobile solar-powered systems in communities affected by Hurricane Helene.
During 2026, the state advanced plans for up to 24 permanent microgrids across six western counties and two mobile systems that can provide emergency electricity during disasters. North Carolina also made approximately $1.4 million available in November 2026 for qualifying energy-efficient building improvements, including potential solar and battery storage projects. Duke Energy continues to offer solar programs and bill credit arrangements, and commercial and residential installations may qualify for property tax exemptions under state law.
Solar growth extends to states outside the top six. New York reached eight gigawatts of distributed solar capacity in July 2026 and is working toward 10 gigawatts by 2030. In Illinois, a law signed in January 2026 set a cumulative energy storage target of 3,000 megawatts. Georgia Power received approval in September 2026 for 1,137 megawatts of new solar power purchase agreements in Georgia, while Virginia‘s solar industry is expanding as data center development increases electricity demand.
California and Texas remain the leading producers, while Florida and Arizona are adding substantial generating capacity. Battery storage and transmission upgrades are also influencing how new projects are developed. As electricity demand grows, these investments will determine how effectively solar generation can support the nation’s power grid.
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