U.S. Small-Scale Solar Generation Has Quadrupled in the Last Decade

Rooftop and other small-scale solar power (systems under 1 megawatt) has grown fast across the country. U.S. generation from these systems rose from about 18,800 gigawatt-hours in 2016 to nearly 93,000 gigawatt-hours in 2025, roughly a fourfold increase over the decade, according to federal energy data.

California remains the biggest source by far, generating 34,411 gigawatt-hours in 2025, more than a third of the national total, with capacity growing from 18 to 20 gigawatts in just the past year. Arizona, Texas, and Florida round out the top four, helped by strong sun and state incentives like Arizona's 25% state income-tax credit for rooftop solar, plus property tax exemptions in Texas and Florida. New York stands out because it ranks fifth in generation despite weaker sunlight, a result of state incentive programs that have pushed homeowners there to install solar anyway. New Jersey, Massachusetts, and Illinois have similar incentive programs supporting growth in less sunny regions.

Growth spiked in 2022, partly because California changed its rules for compensating homeowners who send solar power back to the grid. Systems installed under the older, more generous program got to keep those terms, which pushed many homeowners to install solar before the new, less generous rules took effect in 2023. Since 2022, the pace of growth nationwide has slowed somewhat, though generation still rises every year. If you're considering solar, it's worth checking what incentives your own state and utility currently offer, since they vary widely and can change over time.