{"id":223937,"date":"2026-06-24T22:11:34","date_gmt":"2026-06-24T20:11:34","guid":{"rendered":"https:\/\/www.sma-sunny.com\/?p=223937"},"modified":"2026-06-24T22:47:00","modified_gmt":"2026-06-24T20:47:00","slug":"five-trends-shaping-the-future-of-community-solar","status":"publish","type":"post","link":"https:\/\/www.sma-sunny.com\/us\/five-trends-shaping-the-future-of-community-solar\/","title":{"rendered":"Five Trends Shaping the Future of Community Solar"},"content":{"rendered":"

Insights from the 2026 CCSA Community and Distributed Energy Summit<\/em><\/p>\n

The Coalition for Community Solar Access (CCSA) held its annual Community and Distributed Energy Summit in Washington,\u00a0D.C.<\/span>.\u00a0The 2026 CCSA\u00a0Summit\u00a0<\/span>brought together more than 500 attendees, attracting stakeholders with a shared interest in distributed energy, community\u00a0solar\u00a0and energy storage. The event highlighted the growing importance of community solar and distributed generation as key components of the evolving U.S. energy landscape.<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u201cCommunity Solar programs are a proven asset class that provide clean, quick-to-deploy energy systems on a scale no fossil fuel can match without creating significant air quality and other hazards,\u201d said Frank Cardenas, Midwest territory sales manager at SMA America. \u201cBeing able to respond to grid conditions, remotely adjust parameters, and pair with battery storage systems are all qualities that keep SMA at the forefront of this developing market.\u201d<\/span>\u00a0<\/span><\/p>\n

1. Emerging Markets and Long-Term Outlook <\/span><\/b>\u00a0<\/span><\/p>\n

One summit session\u00a0focused on\u00a0heatmaps of\u00a0growing and emerging markets, including Illinois, Virginia,\u00a0Maryland\u00a0and Pennsylvania, with\u00a0common\u00a0themes\u00a0including\u00a0interconnection challenges, increasing demand for energy storage and\u00a0grid dynamics,\u00a0like\u00a0weighted\u00a0short\u00a0circuit\u00a0ratios.<\/span>\u00a0<\/span><\/p>\n

Throughout the\u00a0summit,\u00a0a\u00a0clear\u00a0message\u00a0emerged:\u00a0distributed generation\u00a0continues\u00a0to grow. The\u00a0community\u00a0solar\u00a0segment\u00a0shows\u00a0strong, sustainable\u00a0growth\u00a0in areas with\u00a0demand spikes and aging infrastructure. The ability to\u00a0co-locate\u00a0generation and demand in the same\u00a0area delivers\u00a0significant cost savings.\u00a0These market\u00a0conditions\u00a0are\u00a0only becoming more common.\u00a0<\/span>\u00a0<\/span><\/p>\n

For\u00a0developers and IPPs, this reinforces\u00a0the importance of long-term system\u00a0planning. Inverter\u00a0selection\u00a0is not just about immediate\u00a0costs,\u00a0it also requires selecting a solution with reliability,\u00a0serviceability\u00a0and lifetime performance for the next 20 to 25 years of a project lifecycle.\u00a0<\/span>\u00a0<\/span><\/p>\n

SMA continues to support this need with solutions like the\u00a0<\/span>Sunny\u00a0Highpower\u00a0PEAK3<\/span><\/a>, designed for distributed generation applications including community solar, agrivoltaics, floating\u00a0PV\u00a0and small utility-scale\u00a0projects. With a\u00a025-year\u00a0design life,\u00a0the PEAK3\u00a0aligns with\u00a0long-term\u00a0project\u00a0needs.\u00a0This solution helps developers\u00a0maximize uptime and long-term asset performance.\u00a0<\/span>\u00a0<\/span><\/p>\n

2. Illinois: A Key Growth Market<\/span><\/b><\/p>\n

Illinois continues to\u00a0emerge\u00a0as one of the largest growth markets for distributed energy. Despite\u00a0operating\u00a0across two grid operators, PJM and MISO, each with their own complexities, stability issues and interconnection requirements, the state government is pushing both toward long-term planning\u00a0for\u00a0renewable resource integration.\u00a0<\/span>\u00a0<\/span><\/p>\n

Earlier this year, Illinois Gov. J.B. Pritzker signed the Clean and Reliable Grid Affordability (CRGA) Act into law. The legislation includes a target of 3,000 MW of nameplate capacity by December 31, 2030, reinforcing the state\u2019s commitment to expanding renewable energy while\u00a0maintaining\u00a0affordability and reliability.<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u201cSMA is such a large part of the community solar market because of the quality that comes with 40 years of experience,\u201d Cardenas said. \u201cThese projects are outside, in all weather, producing power, for 25 years. Long term reliability and serviceability are key to preserving the financial benefits of these energy assets.\u201d<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

3. Data Center Demand and Grid Pressure<\/span><\/b><\/p>\n

Adding to this momentum, hyperscale data center development continues to expand in Illinois, led by companies like Microsoft and Google.<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u00a0“<\/span>These hyperscale facilities can consume 100-300 MW each \u2014 equivalent to a small city’s power needs,\u201d Energy Macro noted.<\/span>\u00a0<\/span><\/p>\n

That level of demand places increasing pressure on the state\u2019s grid infrastructure, accelerating the need for\u00a0additional\u00a0capacity from solar and energy storage to help stabilize and supplement supply.\u00a0<\/span>\u00a0<\/span><\/p>\n

At the same time, not all data centers are created equally. Each data center can have different energy needs, with supply often constrained by transmission bottlenecks. This creates a compelling opportunity for distributed generation renewables to meet the time to power pressures of these data centers, while also supporting the sustainability goals of owners and operators. \u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

4. Policy, FEOC and Compliance Considerations<\/span><\/b>\u00a0<\/span><\/p>\n

Questions around FEOC compliance, safe harbor rules and government incentives continue to challenge new development.<\/span>\u00a0<\/span><\/p>\n

Many community solar projects rely on state and federal tax incentives, making them particularly sensitive to Foreign Entity of Concern (FEOC) restrictions. Projects risk losing eligibility for these incentives if they use equipment sourced from a Prohibited Foreign Entity (PFE). Beginning in 2026, new thresholds limit how much PFE-sourced material can be included in a project. For PV\u00a0projects, at least 40% of manufactured components must come from non-PFE suppliers, while energy storage projects require at least 55%, with these thresholds increasing over time\u00a0by 5\u00a0percentage\u00a0points annually.<\/span>\u00a0<\/span><\/p>\n

As a result, FEOC requirements were a major topic of discussion at the CCSA summit. In the near term, they are creating headwinds for community solar, including higher project costs, increased supply chain complexity, slower deployment\u00a0timelines\u00a0and a\u00a0smaller\u00a0pool of\u00a0compliant products. Over the longer term, however, the market is\u00a0expected\u00a0to shift toward greater reliance on domestic and FEOC-compliant supply chains,\u00a0potentially strengthening U.S.-based manufacturing and reshaping procurement strategies across the industry.<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u201cDespite the overtones of FEOC and supply chain concerns amidst ever-changing policies, the community solar and distributed generation markets remain strong,\u201d said <\/span>Tyson Schoelzel,\u00a0strategic\u00a0markets\u00a0manager\u00a0with\u00a0SMA America, who attended the 2026 CCSA Summit and engaged in discussions with developers.<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u00a0\u201cSMA continues to observe and support growth of these segments, which are critical to helping make solar more affordable and accessible to people and communities across the country.\u201d <\/span>\u00a0<\/span><\/p>\n

Closely related to FEOC and PFE issues is the ability of grid operators and power plant owners to deliver reliable and secure power. The 2026 CCSA Summit also featured sessions on several key and emerging topics, including cybersecurity.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 \u201cSolar and battery energy storage systems, which work together to provide reliable, around-the-clock power, are among the fastest-deployable and cleanest energy sources,\u201d Schoelzel said. \u201cData centers are extremely power-hungry and are often built quickly. When existing infrastructure and available generation cannot support these facilities, especially those located along fiber-optic corridors and near population centers to reduce latency, solar paired with storage is often the solution.\u201d<\/span>\u00a0<\/span><\/p>\n

5. Storage and Future Opportunity <\/span><\/b>\u00a0<\/span><\/p>\n

Energy storage is becoming a critical\u00a0component\u00a0of community solar and distributed generation projects.\u00a0Developers\u00a0are\u00a0increasingly\u00a0looking for\u00a0PV +\u00a0storage\u00a0solutions\u00a0to\u00a0balance the\u00a0supply and demand of renewable energy resources. Now more than ever,\u00a0both\u00a0standalone PV and PV\u00a0+\u00a0storage\u00a0depend\u00a0on a\u00a0clear, strategic\u00a0focus.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0 \u00a0 “To date, most storage has been installed in the bookend segments of residential or large-scale utility. With the good work of CCSA, community solar and distributed generation continue to rise and evolving incentive programs are helping to favor both standalone storage and PV + storage projects. SMA recognizes this expanding market opportunity and has introduced a string storage inverter, the <\/span>Sunny\u00a0Highpower\u00a0Storage<\/span><\/a>,\u00a0for its flexibility of system designs and\u00a0up-time\u00a0reliability,\u00a0which are\u00a0hallmark attributes\u00a0of\u00a0SMA products.\u201d<\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

Final Takeaway<\/span><\/b>\u00a0<\/span><\/p>\n

It was clear from this year\u2019s CCSA Summit that distributed generation and community solar are entering a phase of long-term growth and demand. Developers,\u00a0EPCs\u00a0and asset owners must\u00a0plan\u00a0beyond the next\u00a0few years and\u00a0prioritize the\u00a0focus on long-term performance,\u00a0reliability\u00a0and adaptability.\u00a0<\/span>\u00a0<\/span><\/p>\n

Maintaining close dialogue with all parties involved will be essential to\u00a0maintaining\u00a0timelines and budgets for new builds.\u00a0SMA\u00a0is\u00a0increasingly\u00a0engaging\u00a0directly with\u00a0industry partners and\u00a0EPCs\u00a0about design considerations, best\u00a0practices\u00a0and O&M planning.\u00a0Engaging with\u00a0local\u00a0SMA Sales\u00a0Managers\u00a0early\u00a0can help remove\u00a0roadblocks, catch costly design\u00a0changes\u00a0and better support\u00a0project success\u00a0in the community solar space.<\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

Schoelzel called the event a success and said, \u201cThanks to CCSA, its members and attendees of this annual summit, the outlook for distributed generation and community solar remains strong and will continue to be a key focus for stakeholders across the solar and storage industry.\u201d<\/span>\u00a0<\/span><\/p>\n

SMA is proud to be one of those stakeholders.\u00a0In a market where technologies and OEM providers can shift over time, selecting partners and solutions designed\u00a0for longevity, backed by strong service and proven performance, will be critical to ensuring projects deliver value over their full lifecycle.\u00a0<\/span>\u00a0<\/span><\/p>\n

For product information\u00a0about the Sunny\u00a0Highpower\u00a0PEAK3\u00a0please reach out to InsideSales@sma-america.com.<\/span>\u00a0<\/span><\/p>\n

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Insights from the 2026 CCSA Community and Distributed Energy Summit The Coalition for Community Solar Access (CCSA) held its annual…<\/p>\n","protected":false},"author":63,"featured_media":223947,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1324],"tags":[],"class_list":["post-223937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"acf":[],"yoast_head":"\nFive Trends Shaping the Future of Community Solar - Sunny. 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