The NC Clean Energy Technology Center (NCCETC) published a report finding that 49 states, plus the Washington D.C. and Puerto Rico, had taken distributed solar policy actions during 2025.
The NC Clean Energy Technology Center (NCCETC) released its 2025 annual review and Q4 update edition of “The 50 States of Solar,” a quarterly series providing insights on state regulatory and legislative discussions and actions on distributed solar policy. The policies related to net metering, community solar and residential fixed charge increases. The most active states were Colorado, Illinois, Connecticut, Virginia, Maine and New Jersey.
2025 Policy Action on Distributed Solar Policy and Rate Design. NCCETC
The report identifies 10 solar policy trends, including state responses to waning federal tax credits, consolidating billing in community solar programs and changes to net metering policies.
“Policymakers placed a significant focus on the proper valuation of distributed generation during 2025,” said Rebekah de la Mora, senior policy analyst at NCCETC and lead author of the report. “Along with studies and investigations into how to value distributed generation, policymakers and utilities looked at integrating advanced rate designs and energy storage into net metering programs, as these can help reflect the ‘true’ value of distributed generation.”
A total of 386 state and utility level distributed solar policy and rate changes were proposed, pending or decided in 2025. The report notes that 10 most active states in terms of solar policy were Nevada, Virginia, West Virginia, Idaho, Maine, Illinois, Colorado, Hawaii, Washington and Massachusetts. Nine of the states proposed changes to net metering/billing regulations or compensation. Four states focused policies on community solar. Several are addressing interconnection issues.
“Throughout 2025, policymakers and utilities acted to streamline distributed resource additions to the grid,” said Vincent Potter, project Manager at NCCETEC. “Regulators considered or adopted revised interconnection standards for distributed generators, partially in response to the abrupt conclusion of federal tax credits. Also, policymakers examined measures to increase distributed generation deployment through new incentive programs, pairing with energy storage and increasing program capacity.”
During Q4 2025, 44 states, plus DC and Puerto Rico, took action on distributed solar policy or rate design, with a total of 215 actions tracked in Q4.
News item from the NC Clean Energy Technology Center
