Which 12 States Face Two-Year Community Solar Waits?
Community solar programs enable residents to subscribe to off-site solar arrays and receive credits on their electricity bills. These initiatives have expanded quickly nationwide, but in select states, high demand exceeds project availability. Data from state energy agencies and sector analyses show that subscribers in 12 states now encounter average wait times of nearly two years for new projects to launch. Such delays underscore the appeal of shared solar while exposing gaps in grid infrastructure and regulatory support.
States With the Longest Queues
The states with the most extended community solar waitlists are New York, Minnesota, Maryland, Maine, Colorado, Illinois, Massachusetts, Oregon, New Jersey, Rhode Island, Delaware, and Washington. Each operates established or experimental programs where individuals claim shares in larger solar installations. Participants benefit from generated power without installing panels on their own properties.
New York and Minnesota lead in backlog volume, where developers highlight utility delays in connecting projects to the grid and insufficient local power line capacity as key issues. Maine and Maryland have hit statutory limits on program size, placing new sign-ups on hold until lawmakers authorize expansions. Colorado and Illinois deal with overloaded grids and intricate approval processes that extend timelines for even modest installations.
Grid Bottlenecks and Interconnection Delays
Utility interconnection processes form the core of these slowdowns. Developers note that community solar projects, often sized from 1 megawatt to 5 megawatts, require extensive engineering reviews to confirm grid compatibility. These assessments evaluate if existing lines can handle added solar input without expensive reinforcements, a step that frequently lasts over 12 months.
"Interconnection has become the single largest obstacle for community solar deployment," said Karen Miles, vice president of operations at SunCurrent Energy, a Denver-based community solar developer. "Our projects are fully subscribed within weeks, but the grid review process can stretch for eighteen months before we break ground."
Utilities attribute the bottlenecks to a rapid rise in small-scale solar connections, which strains their engineering teams. Legacy distribution systems, built for one-way electricity flow from central plants, struggle with the reverse flows from distributed sources like community arrays.
Policy Caps and Administrative Barriers
Many states impose capacity limits to control program rollout, but these restrictions now foster shortages. Maryland's pilot initiative, for example, exhausted its designated quota shortly after starting, requiring legislative updates before additional projects proceed.
Massachusetts encounters parallel issues through its Solar Massachusetts Renewable Target program, which allocates fixed capacity per utility zone. Once these blocks fill, developers pause until slots open via project dropouts or regulatory increases. Thousands of prospective subscribers remain sidelined amid these procedural holds.
"Customers are eager to participate, but the regulatory structure has not kept pace with market demand," said James O’Rourke, policy director at the Coalition for Community Solar Access. "We now have more than 350 MW of ready projects sitting idle simply because program caps have not been updated."
Financing Impacts for Developers
Prolonged delays ripple through project economics, impacting subscribers and developers alike. Community solar ventures depend on tax incentives, loans, and subscriber payments to secure funding. Holdups in grid approvals or program slots prolong development phases, inflating administrative expenses and eroding lender trust.
Sector research from Wood Mackenzie indicates that timelines in demand-heavy states have lengthened to twice their initial durations. Developers increasingly pivot to less congested areas like Ohio and Virginia, where fresher policies and lighter grid loads promise quicker returns.
"Capital efficiency is critical," said Michael Chen, chief financial officer at GreenField Renewables, a Boston-based engineering firm. "When a project sits idle for a year waiting for a utility study, carrying costs mount quickly. That can turn an otherwise viable project into a financial risk."
Local Utility Responses
Utilities adopt varied approaches to address the queues. Xcel Energy in Minnesota, for instance, introduced uniform queue management and digital dashboards for real-time status updates. Certain providers launch targeted upgrades to transformers and lines in solar-hotspot regions.
Advancements vary by location, however. In multiple states, regulations do not mandate public disclosure of queue lengths or projected timelines. This opacity hampers developers' planning for timelines and material orders.
Subscriber Frustration and Equity Concerns
End-users bear direct consequences through deferred bill reductions and restricted program entry. Community solar targets renters and low-income families unable to install personal systems, promoting broader clean energy involvement. Stalled capacity hits these groups hardest, delaying their energy cost savings.
"Community solar is supposed to democratize access to clean energy," said Alicia Gomez, program manager at Solar United Neighbors. "Instead, in many states, people sign up and then wait years to see any benefit. That undermines trust in the concept."
Several states now enforce rules for upfront disclosure of wait periods in subscription contracts. These steps build transparency, though they fail to resolve underlying capacity shortages without accelerated approvals.
Market Implications
Backlogs disrupt the national solar ecosystem. Engineering firms and suppliers rely on steady project flows to balance stockpiles of components like mounting hardware, power converters, and panels. Interruptions lead to fluctuating orders and workforce adjustments.
Projections from the National Renewable Energy Laboratory suggest that ongoing delays could leave 1.2 gigawatts of intended community solar offline for the coming two years. This lost capacity diminishes contributions to jobs and regional economies in the distributed solar field.
Accelerating Community Solar Through Policy and Infrastructure Updates
Initiatives to shorten waits gain traction in affected areas. Maine and New Jersey evaluate shifts to dynamic capacity assignments over rigid yearly limits, enabling steadier project inflows.
The Solar Energy Industries Association advocates for nationwide standards on interconnection to minimize state-by-state variations and expedite evaluations. Developers and users stand to gain from simplified approvals, open grid information, and adaptable program rules that match rising interest. States acting decisively will harness community solar's potential for economic gains and sustainable energy equity.