NAICS 221114 Quarterly Industry Report
Solar Electric Power Generation
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221114Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Solar Electric Power Generation (NAICS 221114) draws on data from the Bureau of Labor Statistics[6], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, renewable energy analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the solar electric power generation industry.
Industry Definition & Overview
Solar Electric Power Generation (NAICS 221114) encompasses establishments primarily engaged in operating solar electric power generation facilities that convert sunlight into electric energy per the U.S. Census Bureau[5]. Generated electricity is delivered to bulk power transmission systems or distribution networks. This classification covers utility-scale photovoltaic (PV) solar farms, concentrated solar power (CSP) plants, and merchant solar generating stations that sell wholesale electricity into organized power markets.
About 460 establishments employ roughly 4,811 workers, generating approximately $620 million in annual payroll per the Bureau of Labor Statistics[6]. NextEra Energy Resources operates roughly 8,000 megawatts of solar capacity, while First Solar ranks as the largest U.S.-based PV module manufacturer. Total U.S. solar capacity reached 239 gigawatts by end of 2024, with 37 gigawatts added that year alone - nearly double 2023 installations. Solar represented 66 percent of all new U.S. electricity generation capacity added in 2024.
Per the SBA Table of Size Standards[7], the size standard is 500 employees. The federal Investment Tax Credit (ITC) provides a 30 percent tax credit for solar installations under the Inflation Reduction Act, with prevailing wage and apprenticeship requirements for projects exceeding one megawatt. Utility-scale solar generation reached 219.8 terawatt-hours in 2024, with total solar generation including distributed rooftop systems hitting 303.8 terawatt-hours. Land use requirements of approximately 5 to 10 acres per megawatt create siting challenges in densely developed areas, while interconnection queue backlogs delay project completion by years in many regions.
What's Included in This Industry
- Utility-scale photovoltaic solar farm operations
- Concentrated solar power plant operations
- Solar panel maintenance and cleaning
- Inverter and electrical system management
- Energy storage integration with solar generation
- Power purchase agreement administration
- Grid interconnection and curtailment management
- Solar tracking system operation and calibration
- Environmental monitoring and land management
- Performance monitoring and output forecasting
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Utilities | 22 |
| Subsector | Utilities | 221 |
| Industry Group | Electric Power Generation, Transmission and Distribution | 2211 |
| NAICS Industry | Electric Power Generation | 22111 |
| National Industry | Solar Electric Power Generation | 221114 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221121 | Electric Bulk Power Transmission and Control | Electric Bulk Power Transmission carries solar electricity from remote generation sites to population centers, with transmission buildout often lagging behind solar capacity additions in high-resource areas |
| 221122 | Electric Power Distribution | Electric Power Distribution delivers solar-generated electricity to retail customers and manages two-way power flows from distributed rooftop solar feeding back into local networks |
| 221115 | Wind Electric Power Generation | Wind Electric Power Generation shares renewable energy tax credits, grid interconnection challenges, and utility procurement competition with solar generators across organized power markets |
| 334413 | Semiconductor and Related Device Manufacturing | Semiconductor and Related Device Manufacturing produces photovoltaic cells and modules that convert sunlight to electricity, representing the core hardware supply chain for solar generating facilities |
| 237130 | Power and Communication Line and Related Structures Construction | Power and Communication Line Construction builds transmission interconnections that carry utility-scale solar output from generation sites to grid substations and load centers |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 26.9% | 162 |
| 2 | Florida | 8.6% | 52 |
| 3 | Texas | 7.5% | 45 |
| 4 | North Carolina | 4.8% | 29 |
| 5 | Arizona | 4.2% | 25 |
| 6 | Virginia | 4.2% | 25 |
| 7 | Utah | 3.8% | 23 |
| 8 | New Jersey | 3.6% | 22 |
| 9 | Illinois | 3.3% | 20 |
| 10 | New York | 3.3% | 20 |
% Of Establishments
0%
27%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
216
Total SBA Loans
$138.2M
Total Loan Volume
$640K
Average Loan Size
10 yrs
Average Loan Term
10.85%
Average Interest Rate
2,112
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Solar Electric Power Generation (NAICS 221114) has a size standard of 500 employees for federal contracting purposes. SBA 7(a) loans[8] support project development, panel procurement, and working capital for qualifying operators. The 30 percent ITC under the Inflation Reduction Act improves project economics for small developers entering the utility-scale solar market. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 16 | $48.0M | $3.0M |
| 2 | RiverBank | 8 | $28.8M | $3.6M |
| 3 | Climate First Bank | 8 | $19.2M | $2.4M |
| 4 | Bank of Clarke | 8 | $10.0M | $1.3M |
| 5 | Northeast Bank | 40 | $7.0M | $174K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate solar power generation?
NextEra Energy Resources leads with 8,000 megawatts of solar capacity. About 460 establishments employ roughly 4,811 workers per the U.S. Census Bureau[5]. Operators include independent power producers, utility subsidiaries, and community solar developers.
How fast is solar generation growing?
U.S. solar capacity reached 239 gigawatts by end of 2024, with 37 gigawatts added that year per the Bureau of Labor Statistics[6]. Solar represented 66 percent of all new generation capacity added in 2024, nearly doubling installations from the prior year.
What is the SBA size standard for Solar Power Generation?
Per the SBA Table of Size Standards[7], NAICS 221114 has a size standard of 500 employees. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to solar power?
Related codes include NAICS 221121 (Transmission), NAICS 221122 (Distribution), NAICS 221115 (Wind), NAICS 334413 (Semiconductor Manufacturing), and NAICS 237130 (Power Line Construction) per the U.S. Census Bureau[5].
What tax incentives support solar generation?
The Inflation Reduction Act provides a 30 percent Investment Tax Credit for solar installations, with prevailing wage and apprenticeship requirements for projects over one megawatt. These credits apply through at least 2032 for qualifying projects.
What activities are included in NAICS 221114?
Core activities include PV solar farm operations, concentrated solar power, panel maintenance, inverter management, energy storage integration, PPA administration, grid interconnection, tracking system operation, and performance monitoring per the U.S. Census Bureau[5].
Can solar power businesses get SBA loans?
Yes, firms meeting the 500-employee standard qualify for SBA 7(a) loans[8] covering project development, panel procurement, and working capital. The ITC and long-term power purchase agreements improve loan underwriting for solar projects.
What limits solar generation growth?
Interconnection queue backlogs, transmission capacity constraints, land availability, and supply chain bottlenecks for panels and transformers represent the primary barriers per the Bureau of Labor Statistics[6]. Many projects wait three to five years in interconnection queues before obtaining grid access.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504/CDC loans sba.gov
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