Community Solar in 2026: A Year of Expansion, New States, and Critical Deadlines
Published: February 4, 2026
The community solar industry is entering 2026 with unprecedented momentum. As states race to deploy renewable energy before federal tax credit deadlines and new markets open across the country, homeowners have more opportunities than ever to save on their electric bills while supporting clean energy. This comprehensive guide examines the major developments shaping community solar in 2026, from groundbreaking legislation to new states entering the market.
The Big Picture: Why 2026 Is a Pivotal Year
The solar industry is poised for remarkable growth, with the International Solar Alliance projecting a 20-fold expansion by 2050 and the creation of approximately 27 million new jobs globally. In the United States, 2026 is expected to be another record-breaking year for solar installations, driven by falling module prices—which have declined over 80% in the last decade—and a domestic supply chain that is becoming fully onshored.
However, a critical deadline looms large over the industry. The July 4, 2026 start-construction deadline for federal tax credits under the Inflation Reduction Act has sent states scrambling to accelerate project deployment. This urgency is creating a wave of policy changes and program expansions that directly benefit community solar subscribers.
State-by-State: What's Changing in 2026
Illinois: Doubling Down on Community Solar
Illinois has emerged as one of the most active states for community solar policy in 2026. On January 8, Governor JB Pritzker signed the Clean and Reliable Grid Affordability Act (CRGA), a landmark piece of legislation expected to save Illinois consumers $13.4 billion over the next two decades.
The CRGA includes several provisions that directly impact community solar:
- Community solar project size limit increased from 5 MW to 10 MW
- Grid-scale battery storage target of 3 GW by 2030
- Solar Bill of Rights ensures customers of municipal and cooperative utilities can install rooftop solar
- Time-of-use pricing allows residential customers to pay less during off-peak hours
The Illinois Commerce Commission has also doubled the Adjustable Block Program to 1,000 MW of community, commercial, and small-scale solar, with priority given to projects that begin construction before July 4, 2026.
For income-qualified households in Illinois, community solar programs continue to offer enhanced savings of up to 25%, making clean energy accessible to those who need it most.
Minnesota: A New Era of Inclusive Community Solar
Minnesota, long recognized as a national leader in community solar, is transitioning to a new program structure in 2026. The SolarRewards Community program officially closed on December 31, 2025, and has been replaced by the Inclusive Community Solar program, which launched on January 31, 2026.
The new program introduces significant changes. Most notably, 51% of the program's capacity must be dedicated to income-qualified subscribers. Projects can be up to 5 MW AC, or 10 MW if located on preferred sites or utilizing agrivoltaics.
Minnesota subscribers can expect savings of 10-20%, with income-qualified households eligible for even greater discounts of up to 25%.
Maryland: Ambitious Clean Energy Goals
Maryland's 2026 legislative session is shaping up to be transformative for clean energy. Governor Wes Moore announced the Lower Cost and Local Power Act on January 27.
The state's Affordable Solar Act (H.B. 143) proposes adding 4,000 MW of solar capacity—enough to power 3.2 million homes. Maryland has set an ambitious target of 100% carbon-free power by 2035.
Community solar subscribers in Maryland can expect savings of 10-15% on their electric bills.
New Jersey: Unlocking 3,000 MW of New Capacity
New Jersey made headlines in October 2025 when Governor Phil Murphy signed legislation unlocking an additional 3,000 MW of community solar capacity. This massive expansion positions New Jersey as one of the largest community solar markets in the country.
Colorado: Flexible Interconnection and Inclusive Programs
Governor Jared Polis issued an executive action adopting flexible interconnection standards to accelerate solar deployment. Colorado subscribers can expect savings of 10-15%.
Delaware: New Projects Coming Online
Delaware's community solar market is growing with new projects announced in January 2026. TurningPoint Energy and Standard Solar are partnering to build two community solar projects totaling 11.2 MW.
New Mexico: Regulatory Framework Taking Shape
New Mexico's Public Regulation Commission issued a notice of proposed rulemaking on community solar programs in January 2026. Subscribers can expect savings of 10-30%.
New States Entering the Community Solar Market
Iowa: The Local Generation Act
One of the most exciting developments of 2026 is Iowa's entry into the community solar market. The Local Generation Act was introduced on February 3, 2026.
Virginia: From Pilot to Full Program
Virginia is transitioning from a pilot program to a more robust community solar market. In February 2026, legislation proposing 525 more MW passed the House of Delegates.
Critical Timelines for 2026
- January 31, 2026: Minnesota Inclusive Community Solar launches
- June 1, 2026: Illinois CRGA takes effect
- July 4, 2026: Federal ITC start-construction deadline
Conclusion
Community solar in 2026 represents a convergence of favorable conditions: falling costs, supportive policies, and growing consumer demand. The key is to act while capacity is available.