Halfway through 2026, Six States Lead the Country on Smart Energy Policy

Across the country, governors and state lawmakers are facing the same challenge: electricity demand is rising, power bills are increasing, and constituents expect solutions.

Increasingly, policymakers from both parties are arriving at the same answer. Solar and energy storage are among the fastest, most cost-effective resources available to add new electricity to the grid, helping states meet growing demand while improving reliability and putting downward pressure on electricity costs.

Here are six states that passed some of the country’s smartest solar and storage policies during the first half of 2026.

Virginia

Virginia is experiencing some of the fastest electricity demand growth in the country, driven largely by data center expansion. State leaders responded with one of the nation’s most comprehensive energy packages, making it easier to deploy solar and storage, strengthening grid reliability, and expanding access to low-cost electricity. SEIA worked hand-in-hand with lawmakers, local partners, and member companies to get this slate of legislation across the finish line.

Caitlin Vincent, SEIA’s Director of Southeast State Affairs, with Virginia Senate Majority Leader Scott Surovell at SEIA’s Richmond lobby day in February.

Key legislation includes:

• Smart Residential Solar Permitting (HB590/SB382): Makes it easier and less expensive for homeowners and businesses to install rooftop solar by cutting costly permitting red tape.
• HB895/SB448: Expands Virginia’s energy storage target to 20 GW, helping balance rapid load growth and strengthen grid reliability.
• The Distributed Generation Expansion Act (HB628/SB175): Encourages more rooftop, parking lot, and landfill solar projects that generate electricity closer to where it’s used, reducing strain on the grid and limiting costly transmission upgrades.
• HB711/SB347: Establishes consistent statewide siting standards, providing greater certainty while preserving local decision-making.
• HB807/SB254 and HB809/SB255: Expands Dominion Energy’s and Appalachian Power Company’s shared solar programs by an additional 525 MW and 100 MW, respectively.
• HB1467: Directs Appalachian Power to develop a virtual power plant pilot program by July 2027.

Maryland

Maryland protected customer solar programs while providing greater certainty for future investment.

The Utility Relief Act (HB1532/SB841) doubles the state’s net metering cap from 3 GW to 6 GW, allowing more homes and businesses to install solar while preserving one of the state’s most successful customer energy programs. The legislation also creates a pathway for the next generation of Maryland’s net metering program while providing regulatory certainty for projects that begin development under the current rules.

Like in Virginia, SEIA worked closely with legislative leaders and partners to secure this positive progress, testifying at committee hearings and hosting lobby days so solar workers, businesses, and advocates could make their voices heard.

New Jersey

New Jersey expanded its commitment to energy storage to help meet growing electricity demand while reducing long-term energy costs.

The bipartisan A4529/S3819 expands the number of transmission-scale storage projects eligible for state incentives, accelerating deployment of batteries that improve reliability and reduce electricity costs.

Illinois

Illinois continued implementing its landmark Clean and Reliable Grid Affordability Act, refining the law through a “trailer bill” to accelerate deployment while maintaining its focus on lowering electricity costs.

The law is projected to save Illinois consumers $13 billion on electricity bills over the next 20 years while deploying 3 GW of battery storage, supporting standalone storage projects, and launching a new virtual power plant program to better manage electricity demand.

New York

New York continued investing in distributed energy as a cost-effective strategy to improve grid reliability and lower electricity costs. The state budget invested $200 million into the NY-Sun program that incentivizes rooftop and community solar.

A recent study by Synapse Energy Economics found that scaling up distributed solar and storage in New York can deliver $1 billion in annual utility bill savings through lower wholesale rates for customers, while supporting jobs across the state.

The budget also directs the Public Service Commission to modernize the utility interconnection process by developing programs that use smart controls to connect more solar and storage projects faster and at lower cost. Studies estimate the approach could unlock an additional 3.3 GW of cost-effective capacity.

Colorado

Colorado launched an innovative virtual power plant program, sparked by Senate Bill 24-207, that aims to procure at least 50 MW of customer-connected battery capacity by 2027 to help meet periods of high electricity demand. By coordinating distributed battery energy storage systems, the program improves grid reliability without requiring expensive new infrastructure while giving customers new opportunities to support the grid.

Momentum Continues

These six states demonstrate a growing consensus: expanding solar and energy storage is one of the fastest and most cost-effective ways to meet rising electricity demand while improving reliability and putting downward pressure on electricity costs.

Legislators in Massachusetts, California, and Pennsylvania continue to consider significant energy legislation this year, alongside other states evaluating ways to modernize their electric grids. SEIA will continue working with policymakers, industry stakeholders, and local communities across the country to advance policies that expand access to affordable, reliable, American-made solar and energy storage.