A report released this week shows that Arizona is ranked second nationwide when it comes to the capacity of solar installations.

The report issued by the Solar Energy Industries Association covers the third quarter of 2012.

According to the report, Arizona came had 192 megawatts of energy installed during that time behind California. Rounding out the top five were New Jersey, Massachusetts and Nevada.

Arizona Corporation Commission Chairman Gary Pierce says policies adopted by the commission over the past two years have positioned Arizona to get more solar power at lower costs. He says the commission has been reducing incentives as demand for solar rises.