The rise of solar energy across the U.S.

November 26, 2024

Solar energy adoption in the United States is accelerating, playing a pivotal role in reducing carbon emissions and achieving sustainability goals. With over 130 gigawatts (GW) of installed solar capacity as of 2023—a significant increase from less than 10 GW in 2013—solar power is transforming energy consumption patterns nationwide. This growth presents substantial opportunities for the commercial real estate sector to enhance operational efficiency, meet regulatory requirements, and increase property value.

Solar adoption across the US

Solar energy has seen remarkable growth nationwide. While individual state approaches vary, the overarching message is clear: harnessing solar energy on a large scale is feasible and essential. Solar power has already offset an estimated 200 million metric tons of CO₂ annually—equivalent to removing over 40 million cars from the road (SEIA). As states continue to expand solar adoption, this renewable energy source is proving to be a cornerstone of the nation’s transition toward a low-carbon future.

California: Leading the charge, California accounts for more than 30% of the nation’s solar energy generation. The state has embraced aggressive solar policies, such as mandating solar installations on all new commercial and residential buildings. These measures have contributed to California becoming the largest solar market in the country, generating over 22 GW of solar power annually (California Energy Commission).
Texas: Known for its oil and gas industry, Texas has rapidly embraced solar energy, with its installed capacity increasing by 52% in 2023 alone. The state’s combination of abundant sunlight and favorable policies has positioned it as the second-largest solar market, with over 16 GW of installed capacity (SEIA).
Florida: The Sunshine State has doubled its solar capacity in the past three years and ranks third in the nation. With more than 10 GW of solar capacity, Florida’s utilities are investing heavily in solar farms, further reducing reliance on fossil fuels (EIA).
Other states: Nevada, Arizona, and North Carolina are also leaders in solar adoption. Nevada generates more than 20% of its electricity from solar, while Arizona’s desert climate makes it ideal for utility-scale solar farms (EIA).

“Since the Inflation Reduction Act was signed into law in August 2022, there have been nearly $17 billion in planned U.S. solar manufacturing investments (a 31 percent increase since December 2023), representing 126 new facilities and/or expansions.” - Heather Boushey, Chief Economist, Investing in America Cabinet

The role of solar in commercial property

The commercial real estate industry accounts for approximately 30% of global carbon emissions, underscoring the urgency to decarbonize. Integrating solar energy into commercial properties is a strategic approach to reducing this carbon footprint. Solar installations not only decrease reliance on fossil fuels but also align with corporate sustainability objectives and regulatory requirements. For instance, California mandates that all new commercial buildings include solar panels, setting a precedent for other states.

In the table below, CBRE summarises the top sources of clean energy, their potential impact on reducing carbon emissions and whether they are realistic for commercial property.

For commercial property owners, adopting solar energy offers multiple benefits:

Cost savings: Solar installations can significantly reduce energy expenses, with some properties experiencing reductions of up to 75% annually (JLL)
Increased property value: Green-certified buildings, including those with solar systems, often command higher rents and occupancy rates. JLL research shows an average green premium of 7.1% across eight major cities in North America.
Regulatory compliance: As cities implement stricter energy performance standards, integrating solar energy helps properties meet these requirements and avoid potential penalties.

Nevada: a case study in success

Nevada, particularly Las Vegas, has committed to using its abundant sunshine to generate renewable energy. The state ranks second in the nation for solar capacity, generating over 20% of its electricity from solar sources. Las Vegas has made remarkable strides toward sustainability, powering municipal buildings with 100% renewable energy and achieving significant emissions reductions—estimated at 25,000 metric tons annually, according to a recent report.

Monitoring and optimization

Installing solar infrastructure is a critical step toward sustainability, but its true potential is only realized when paired with effective monitoring and optimization. Solar energy can power a building efficiently only if the entire operational system—including all plant and equipment—is continuously monitored and fine-tuned. Advanced analytics software like CIM’s PEAK Platform plays a vital role in this process, ensuring that buildings operating efficiently and energy is utilized effectively.

By using advanced analytics software, building managers can:

Identify inefficiencies: Detect and resolve performance issues across HVAC systems, lighting, and other equipment to avoid wasted energy.
Enhance operational efficiency: Advanced tools like automated fault detection and diagnostics (FDD) identify issues in real-time, reducing downtime and repair costs.
Extend equipment lifecycle: Data-driven maintenance helps prevent equipment failure and ensures that both solar systems and other building infrastructure operate at peak performance.

Continuous monitoring ensures that solar power seamlessly integrates into a building's operations, maximizing its impact on energy efficiency and sustainability while unlocking its full financial and operational value.

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