Community Solar Installations in U.S. to Drop 29% by 2025
Community solar installations in the U.S. are expected to decline significantly by 2025, with a forecasted drop of 29% from the 2024 record high of 1.7 gigawatts. This downturn follows a 36% decrease in installations during the first half of 2025 compared to the same period last year.
The slowdown in community, which makes clean power accessible to those without rooftop solar panels, is attributed to various factors. Economic challenges, such as a sluggish labor market, increased inflation, reduced growth forecasts, and policy uncertainty, have impacted investment momentum. Regulatory changes in states like New York and Maine have also contributed to the slowdown.
The Republican megabill passed in July, which set an early expiration date for a key tax credit, has further shaken up the community market. Despite these challenges, about 9.1 gigawatts of shared solar have been installed in the U.S. to date, with expected capacity to reach roughly 16 GW by 2030.
The decline in community installations, from a projected 16 GW to the current 9.1 GW in 2025, highlights the need for policy stability and economic recovery to support the growth of renewable energy in the U.S.
