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In 2021, California's energy costs were the , with costs higher only in Hawaii and Alaska. To offset costs and reduce fossil fuel emissions, the Biden administration has dedicated of federally protected desert land in the state to solar energy farm development. Most of these acres are in the southern half of the state. 

Other areas of the South, most notably Texas, are also in line for new solar installations. Traditionally thought of as oil and gas country, Texas announced plans to by the end of 2023, and it did so in the middle of the pandemic amidst burgeoning economic uncertainty. Should the state meet this goal, it would represent one-third of the 30 GW expected to be brought into service nationwide in the coming year.

Texas both produces and consumes the , yet its power grid is not as robust as one would expect given that fact, as evidenced by its in February 2021 that led to 246 deaths. The Electric Reliability Council of Texas, which operates the state's electric grid and , sees the value in ramping up alternative, renewable energy sources. Giant utility-scale projects prosper in western Texas where intense sun and vast tracts of flat open land for solar generation.

The state's largest solar plant, the 2W Permian Solar Project Hybrid, located in Andrews County near the border of New Mexico, holds 1.3 million solar panels and is estimated to be capable of producing enough energy to power . The rurality and generally flat topography of Andrews County lends itself to solar field development, which has drawn corporate attention most recently from Best Buy, which bankrolled the in its effort to become carbon neutral by 2040.

In 2006, the California Public Utilities Commission approved a to subsidize commercial and residential solar installations. A solar cell was developed that finally broke the "—meaning the cell had a sunlight-to-energy conversion of more than 40%. Silicon Valley became a flashpoint for .

In the intervening years, solar plants have grown exponentially in both size and number. In 2010, there were little more than 100 utility-scale plants in the U.S.; as of 2020, that number grew six times larger.

The Infrastructure Investment and Jobs Act of 2021 to the Department of Energy's budget for solar manufacturing and recycling, bringing it to $56 million. International asset management companies, such as Copenhagen Infrastructure Partners K/S, are doubling down on renewable energy resources. CIP announced a partnership with Bank of America Corp. in 2020 to finance the construction of in Pecos County, Texas, the state that is already the largest source of electricity in the country.

The Southwestern U.S. typically receives the strongest amount of direct sunlight and has, relative to other U.S. regions, less tree canopy and foliage coverage on the ground—as well as generally warmer temperatures.  While any area in the U.S. has the potential to harness and benefit from solar power, this Southwest region—which includes parts of California, Nevada, Arizona, Utah, and New Mexico—has the greatest large-scale potential. The region averages between 6.5 to 7.5 daily kilowatt hours (kWh) per square meter, the highest annual direct sunshine in the nation according to the National Solar Radiation Data Base. 

Arizona's solar PV plants, for example, have in every other state—but are closely followed by Utah, California, and Nevada. What is particularly telling is the fact that Arizona has just one-fifth the installed capacity of California and yet it outperformed the Golden State from 2014-2017, according to EIA data. PV modules have the greatest capacity for PV power on large tracts of land with , making Southwestern states prime real estate for solar farms.

Regions without year-round sunny weather such as New England or the East Coast still average between 4 to 5 kWh a day per square meter, so don't count them out entirely. In fact, North Carolina, New Jersey, Massachusetts, and New York are among the with the most solar megawatts installed.