Solar panels are seen along with a view of the neighborhood and lower Manhattan from the rooftop of Timber House, the city's first mass-timber condo building, in the Park Slope neighborhood of Brooklyn, New York, U.S., August 16, 2022. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights

The capacity of small-scale solar increased from 7.3 GW in 2014, to 39.5 GW by 2022, the statistical arm of the U.S. Department of Energy said.

Small-scale solar - also called distributed solar or rooftop solar, refers to solar-power systems with 1 megawatt (MW) of capacity or less, and accounted for about one-third of the nation's total solar capacity.

The U.S. solar industry was expected to add a record 32 GW of production capacity this year, helped by investment incentives under the Inflation Reduction Act.

Hawaii has the highest small-scale solar penetration, with 541 watts per person, despite California having the biggest small-scale solar capacity at 36%, the EIA said.

New York and New Jersey—mid-Atlantic states with less year-round sunshine—have the second- and third-most small-scale solar capacity, respectively, although in recent years, sunny Texas and Arizona have been closing the gap, the agency said.