State-run solar programs are powering a rapid shift in America’s electricity mix by boosting reliability, cutting costs and emissions, and opening doors for households and businesses that couldn’t previously access clean power. The Energy Information Administration (EIA) has identified utility-scale solar as the fastest-growing source of electricity generation in the United States, and the Solar Energy Industries Association (SEIA) expects cumulative U.S. solar capacity to nearly triple by 2036, with 11 states setting solar deployment records in 2025.  Alongside increased energy output, the solar industry continues to deliver meaningful environmental, economic, and social benefits across the United States. Greenhouse gas reductions, air quality improvements, and a strengthening domestic supply chain underscore both the momentum behind solar deployment and the growing capability to meet future clean energy demand.  The push toward flexible, clean power to address the energy grid’s growing need for improved efficiency and resiliency demands stronger efforts to support communities directly impacted by rising energy prices and instability.

Without a nationwide standard for solar regulation or incentives, states have stepped up to set the stage for scaling solar and bringing energy wins into their own backyards. Renewable and clean energy standards championed by states now cover a majority of U.S. retail electricity sales, creating predictable demand signals that de‑risk investment and catalyze utility planning.

The following analysis will focus on the social and community benefits that can be achieved by state-run solar programs, with case studies and takeaways to illustrate real time impact and what to expect as a solar vendor.

Together, state-led program design and solar vendor execution are not only accelerating deployment but helping to ensure that the benefits of solar – cost savings, job creation, and resilience – reach the communities that need them most.

What do we mean by ‘state-run solar programs’?

Federal initiatives, notably Investment and Production Tax credits, have initiated cross-country solar programs by lowering implementation costs and broadening participation opportunities for utilities and tax-exempt entities. However, states are creating solar programs that span a variety of policies and incentives tailored to each state’s specific solar market and audience.  The following key features are present in state programs that prioritize positive community impact and create new opportunities for solar vendors.

• Market creation policies: As of December 2025, 28 states and the District of Columbia have established a Renewable Portfolio Standard (RPS), requiring energy producers or providers to supply energy from low- or zero-carbon emission sources. These policies set long-term targets that firmly push for a sustained investment in solar vendors to improve energy access and grid resiliency for end-user benefit.
• Customer-facing incentives: Adjustable-block and Renewable Energy Credit (REC) programs make solar more affordable by paying customers installing solar panels for the clean energy produced by buying a set number of years’ worth of RECs from the solar system at a set price. These “block” programs provide predictable, step‑down incentives that often include equity adders and site‑based bonuses (e.g., brownfields, canopies) that build stronger grid resiliency and bring cost savings directly to customers by reserving dedicated pricing for RECs within each program “block” or grouping of project types.
• Workforce upskilling and integration: Workforce demographic requirements target new hires in historically disadvantaged geographical areas and uplifting communities with new job opportunities. State-led upskilling initiatives to fill the workforce gap mean solar vendors are now encountering a revitalized workforce of new and transitioning talent eager to make a difference.

a. Additionally, state programs often require state DOL prevailing wages, and for projects greater than 1MW AC also pursuing federal tax credits, there could also be federal DOL prevailing wage and apprenticeship (PWA) requirements in addition to the state’s requirements.

Case studies: Where states are investing in local communities

Two successful flagship initiatives, New York’s NY-Sun and Illinois Shines, showcase the potential social impact of state solar programs and how solar vendors can plug in and see results.

New York: NY-Sun’s predictable blocks and equity adders

New York’s NY-Sun program uses an adjustable-block incentive that layers on targeted equity adders designed to steer benefits toward beneficiaries who historically lacked access to solar participation, such as low‑ and moderate‑income (LMI) households, multifamily buildings, environmental justice communities, nonprofit organizations, and community‑driven solar developments.

These adders directly support New York’s Climate Leadership and Community Protection Act (CLCPA) equity mandates, requiring meaningful benefit flows (at least 35% of climate and clean energy investments) to disadvantaged communities. NY-Sun streamlines the solar vendor experience by providing dashboards, incentives, and resources to communicate remaining block capacity and optimize solar projects.

Takeaway: Transparent block designs and targeted adders deliver scale while directing benefits to disadvantaged communities, and previously undercapitalized solar sites create space in New York’s solar market for solar vendors upstream and downstream of installation.

Illinois: Illinois Shines and the Minimum Equity Standard (MES)

Illinois Shines is the state’s Adjustable Block Program, paying vendors up front for RECs representing 15 years of expected solar generation. It supports six categories (or blocks): Small Distributed Generation (DG), Large DG, Traditional Community Solar, Community‑Driven Community Solar, Public Schools, and Equity‑Eligible Contractors.

Through the Climate and Equitable Jobs Act (CEJA), Illinois launched a Minimum Equity Standard (MES) requiring the project workforce of each approved vendor/designee to include Equity Eligible Persons (EEPs), starting at 10% in 2023 and rising to 30% by 2030.  MES applies to installation, development, admin, sales/marketing, and technical roles performed in Illinois for Illinois Shines projects, and noncompliance triggers corrective actions and potential suspension.

Illinois demonstrates that equity can be embedded in program eligibility instead of being an afterthought. Linking REC incentives to workforce inclusion builds durable pipelines for underrepresented workers while unlocking new project workforces for solar vendors to hire.

Takeaway: If you want megawatts and meaningful local benefits, couple predictable REC blocks with a measurable workforce-equity standard and transparent reporting.

Key recommendations

• Build predictable programs collaboratively: Use adjustable block designs like NY-Sun and Illinois Shines with regular reviews aligned to evolving federal guidance. Publish transparent dashboards with metrics such as LMI participation, workforce demographics, and subscriber savings to build trust and guide adjustments. Establish strong governance through state solar steering committees – including community groups, utilities, and industry experts – to coordinate policy and implementation. Program design should also address labor standards early, particularly state Department of Labor prevailing wage requirements, so compliance expectations, reporting, and project economics are clear before procurement and installation begin.
• Get creative with installation planning: The Department of Energy and the National Renewable Energy Laboratory have frameworks showing how bill crediting and low-income design features can cut energy burdens for renters and multifamily residents when paired with consumer protections. Solar vendors should use the federal and state equity adders, as well as low-income tax incentives, to pull projects into disadvantaged communities and onto dual-use sites (e.g. landfills, rooftops, canopies) to use land efficiently.
• Sustain and strengthen the workforce pipeline: As solar employment grows, consistent policy and training investments are essential to avoid boom-bust hiring cycles. Solar vendors should align procurement and project development with workforce requirements such as apprenticeships and prevailing wage standards, while building partnerships with regional training providers. Vendors should also integrate compliance processes – including certified payroll, job classification, and subcontractor oversight – into project delivery from the outset. Particularly for projects with both state and federal prevailing wage requirements, there may be efficiencies and compliance benefits to using a third-party provider to assess both during the project’s construction. Coordination with neighboring states on interconnection queues and transmission planning can further support workforce stability and enable cross-state project opportunities.

Conclusion

State-run solar programs are demonstrating that scaling clean energy and delivering community benefits can – and should – go hand in hand. By pairing predictable incentives with equity-driven design and strong workforce standards, states are creating conditions where solar vendors can expand access, reduce costs, and strengthen grid resilience.

The next phase of solar growth will depend on how effectively policy, investment, and execution remain aligned to make sure that increased capacity translates into meaningful, measurable impact for communities.

How CohnReznick can help

CohnReznick brings deep expertise in sustainability strategy, Illinois Shines MES compliance, and equity accountability programs, helping clients meet rigorous labor, reporting, and participation standards across evolving state program requirements. We have extensive experience working with renewable energy credits (RECs) and energy‑related tax credits, helping organizations maximize incentives and navigate complex regulatory frameworks. And our team provides support with prevailing wage applicability assessments, certified payroll readiness, labor classification reviews, subcontractor compliance processes, and comprehensive accounting services for renewable energy clients, from project‑level financial tracking to incentive accounting and compliance-driven reporting.

Contact us to discuss how we can support your next steps.