As the renewable energy transition accelerates, the commercial solar EPC (Engineering, Procurement, and Construction) market in California, Nevada, and Arizona is poised for significant growth in 2025. This article will provide insights into the key segments of solar carports and ground-mounted systems, supported by projected market size, expected growth rates, and financial drivers.
California: A Solar Powerhouse with Expanding Carports and Ground-Mounted Systems
California remains the dominant player in the U.S. solar market, and commercial installations are a significant part of this growth. In 2025, California’s commercial solar sector, including carports and ground-mounted systems, is expected to see continued investment, particularly driven by large-scale projects in public, commercial, and educational sectors.
The state’s commercial solar market is projected to reach approximately $5 billion by 2025, reflecting a compound annual growth rate (CAGR) of 7-8%. Solar carport installations, which are popular in urban and suburban settings, are expected to account for a significant portion of this market, with major projects expected to cost between $3-6 million for medium-sized installations. Ground-mounted solar systems, particularly those for utility-scale projects, will continue to dominate the larger commercial segment, with installations averaging $1 million per megawatt (MW).
These investments are being driven by policy incentives such as the Investment Tax Credit (ITC) under the Inflation Reduction Act (IRA), which allows businesses to receive up to 30% tax credit on solar installations. This has made commercial solar projects highly attractive for corporations looking to reduce energy costs and achieve sustainability targets.
Nevada: Growth in Solar Infrastructure for Large-Scale Installations
Nevada, with its vast solar potential, is also experiencing significant growth in the commercial solar EPC sector. Nevada’s solar market is forecast to grow to around $1.3 billion by 2025, with much of the growth driven by ground-mounted systems for large commercial and utility-scale projects. The commercial solar market in Nevada is expected to expand at a CAGR of 6-7%, with ground-mounted systems contributing significantly to this growth.
Commercial ground-mounted solar installations in Nevada are expected to cost between $1 million to $1.5 million per MW, depending on the size of the project and site-specific factors. Solar carports, while less common than in California, are still expected to grow in popularity, especially in urban areas where land is more expensive. These installations can range from $2-5 million, depending on the complexity of the design and integration with existing infrastructure.
The state’s emphasis on energy independence and sustainability, as well as favorable policies like net metering, is pushing commercial entities to invest in solar energy, creating a healthy pipeline of projects for EPC contractors.
Arizona: Utility-Scale Projects Drive Market Expansion
Arizona’s commercial solar EPC market is projected to see steady growth, driven by utility-scale ground-mounted systems and, increasingly, solar carports in commercial settings. The total commercial solar market in Arizona is expected to reach $2.4 billion by 2025, with a CAGR of 6-8%.
Ground-mounted systems, particularly for large commercial and utility-scale projects, will make up the bulk of this market. Costs for these systems range between $1 million to $1.2 million per MW. Solar carports, although still emerging in the state, are becoming a popular choice for businesses looking to combine energy generation with functional infrastructure like shaded parking.
Federal incentives from the IRA, along with state-level incentives, are expected to drive further investment in both solar carports and ground-mounted systems. Arizona’s commercial market is also benefiting from corporate initiatives aimed at achieving 100% renewable energy usage, leading to increased interest in solar EPC projects.
Conclusion: A Bright Future for Commercial Solar EPC in the Southwest
The commercial solar EPC market for carports and ground-mounted systems in California, Nevada, and Arizona is set for strong growth through 2025. Federal incentives, state policies, and corporate demand for sustainable energy solutions are fueling this expansion.
The combined market size for these states is expected to surpass $8.7 billion by 2025, with California leading the way, followed by Arizona and Nevada. Ground-mounted systems will continue to dominate the utility-scale and large commercial segments, while solar carports will see increasing adoption in more urbanized areas.
With experienced EPC contractors and favorable financial conditions, the outlook for the commercial solar sector is positive, making this region a key driver of the U.S. renewable energy transition.
