Best and worst states ranked for solar industry growth

1. California

California ranked as the top state for solar – by a long shot. And it’s no surprise since the Golden State enjoys almost 300 sunny and partly-sunny days per year. Solar is a booming business in CA, with the state investing over $73 billion in solar technology and providing generous tax incentives and property tax exemptions for residents who get solar panels for their homes. 

2. Texas

Texas, a state known for having its own power grid, is next on the list of top solar states. However, there’s a very large gap between first and second place on this list. Texas’s total solar energy investment is $11 billion, which is $62 billion less than California’s spending. And the results are pronounced, since TX gets just over two percent of its electricity from solar compared to CA’s 23 percent. That said, TX is still leading the way in residential solar panels among the nation, and has the potential for exponential growth in the solar industry.

3. North Carolina

North Carolina’s commitment to solar energy has earned the state a spot in the top five for the last half-decade. As another state that sees long stretches of sunny days annually, NC gets a total of 7.5% of its electricity from solar, which is higher than Texas and Florida, two other states in the top five, combined. 

4. Florida

It’s no surprise that the Sunshine State is in the top five for solar panels. With an almost $10 billion total solar investment and just over three percent of the state’s electricity coming from solar, it’s clear that solar panels in Florida are still on the uphill climb when it comes to maxing out solar capacity. 

5. Arizona

Known for its dry heat and the Grand Canyon, Arizona rounds out the top five solar states. Like its neighbor to the west, AZ invests heavily in solar energy, coming in second only to CA in the amount of funds invested into solar. And the state’s dedication to solar is yielding results, with eight percent of the state’s electricity coming from solar energy.

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1. North Dakota

North Dakota gets half the number of sunny days as California, which could account for its position as last on this list. Adding to its dismal solar turnout is the fact that ND has just seven solar companies state-wide and currently gets zero percent of its electricity from solar. 

2. South Dakota

South Dakota beats out its neighbor to the north by the thinnest of margins. The Mount Rushmore State has ten solar companies at last count (as of Q1 2021), providing approximately 450 solar jobs. Still, South Dakota invests double the amount of ND, with a four million total solar investment throughout the state.  

3. West Virginia

It may seem odd to see the sunny state of West Virginia this low on the list. However, WV has long been a leader in coal production and coal mining. Almost 14,000 West Virginians have jobs related to the coal industry, and there are “currently 14 coal-fired electric generating facilities” in the state, according to WV.gov. 

4. Alaska

Alaska ranks fourth from the bottom in solar generation. Though it’s invested over 32 million in solar, Alaska is home to just nine solar companies. Solar in AK is further complicated by the fact that cities like Anchorage get a whopping 19 hours of sunlight per day in the summer, but spend most of the winter months in near-darkness. 

5. Kentucky

The Bluegrass State is low on this list, but KY may be due for a solar renaissance. With 41 solar companies and a 116 million total investment, KY is seeing strides toward solar synergy. Major corporations, such as General Motors, have installed solar farms in the Bowling Green area of Kentucky. However, some Kentuckians object to industrial solar farms taking over land formerly used for farming and cattle grazing.

State	SEIA Ranking 2021	# of companies	Residences powered by solar	% of state’s electricity from solar	Total solar investment in state (millions
California	1	2144	8,548,370	23.6	$73.7 billion
Texas	2	499	1,082,407	2.3	$11.2 billion
North Carolina	3	204	859,707	7.5	$10.1 billion
Florida	4	411	842,897	3.4	$9.6 billion
Arizona	5	315	810,751	8.0	$13.9 billion
Nevada	6	94	672,070	15.3	$7.8 billion
New Jersey	7	249	586,709	6.6	$14.8 billion
Massachusetts	8	158	545,258	18.5	$9.1 billion
Georgia	9	192	359,160	3.5	$3.7 billion
New York	10	678	474,848	2.7	$7 billion
Virginia	11	176	280,993	2.0	$2.8 billion
Utah	12	100	442,889	8.3	$3.5 billion
South Carolina	13	74	222,247	2.4	$2.3 billion
Colorado	14	354	340,720	4.1	$4.3 billion
Minnesota	15	153	215,771	3.4	$2.4 billion
Hawaii	16	85	356,477	17.0	$3.4 billion
Maryland	17	177	153,463	4.3	$3.9 billion
New Mexico	18	72	287,628	6.1	$2.3 billion
Oregon	19	114	144,197	2.3	$1.8 billion
Indiana	20	80	111,763	0.7	$1.2 billion
Connecticut	21	140	130,963	2.4	$2.4 billion
Pennsylvania	22	426	96,859	0.4	$2.9 billion
Illinois	23	314	89,781	0.4	$1.4 billion
Idaho	24	31	79,587	3.5	$817 million
Ohio	25	238	63,137	0.4	$1.3 billion
Michigan	26	188	83,045	0.4	$714 million
Wisconsin	27	152	71,572	0.5	$644 million
Iowa	28	50	54,792	0.5	$568 million
Rhode Island	29	29	73,698	6.6	$644 million
Arkansas	30	28	43,550	0.8	$486 million
Vermont	31	59	69,026	14.5	$729 million
Tennessee	32	126	35,968	0.6	$877 million
Mississippi	33	12	34,294	0.7	$354 million
Missouri	34	119	33,187	0.7	$774 million
Alabama	35	34	30,531	0.3	$341 million
Washington	36	122	25,938	0.3	$707 million
Maine	37	47	44,523	1.4	$349 million
Louisiana	38	47	18,248	0.4	$465 million
Delaware	39	37	18,101	3.9	$504 million
New Hampshire	40	57	21,763	1.0	$351 million
Wyoming	41	9	22,382	0.4	$153 million
Montana	42	26	16,699	0.3	$160 million
Washington, D.C.	43	153	16,240	43.1	$260 million
Kansas	44	39	12,559	0.2	$134 million
Oklahoma	45	25	9,557	0.1	$131 million
Nebraska	46	28	7,931	0.2	$91 million
Kentucky	47	41	6,241	0.2	$116 million
Alaska	48	9	1,496	0.1	$32 million
West Virginia	49	12	1,134	0.03	$33 million
South Dakota	50	10	213	0.02	$4 million
North Dakota	51	7	113	0	$2 million

 

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