A new year typically brings excitement and anxiety as we all want to know whether the future will be favorable or unfavorable. While we don’t have a crystal ball, we have extrapolated four of 2024’s most common solar power challenges into the future by looking ahead to see how these challenges might play out in 2025.
1. Interconnection bottlenecks
According to the U.S. Department of Energy, as of October 2024, more than 2,500 gigawatts of zero-carbon generation and storage capacity were awaiting connection to the electric grid. However, the country must double its current transmission capacity before the grid can absorb these clean power projects.
While active U.S. interconnection capacity is now more than twice the total installed capacity of the existing U.S. power plant fleet, the typical duration from connection request to commercial operation increased from <2 years for projects built in 2000-2007 to a median of 5 years for projects built in 2023.
Clean energy and climate advocates hope that a new rule announced by the Federal Energy Regulatory Commission (FERC) in May 2024 will improve grid reliability and decrease interconnection wait times.
The rule requires regional grid operators to develop a 20-year plan for constructing transmission lines to meet the country’s increasing electricity demand. However, as the regional grid operators have 12 months to present their plans for approval, grid connection woes will probably plague developers and their clean energy projects throughout 2025.
2. Weakened net metering policies
Several states are actively considering or have already implemented changes to their net metering policies. Weakened net metering policies significantly decrease the appeal of community solar and residential solar projects, often leading to a decline in new project requests. Clean energy advocates will monitor the impact of these changes in the states below.
Delaware: While Delaware is not phasing out net metering, it is reforming the program. In February 2024, Delaware lawmakers advanced legislation to analyze net metering costs and determine if there is a cost shift. On January 10, 2025, lawmakers extended the Delaware Sustainable Energy Utility (DESEU) reporting deadline from December 31, 2024, to April 30, 2025. They directed all Delaware electric utilities that offer net metering to solar customers to participate in the cost-benefit study and analysis of net metering.
Illinois: Starting January 1, 2025, residential and small commercial customers of ComEd, Ameren, and MidAmerican will receive reduced net metering benefits. Customers who installed solar panels and were approved for net metering before the end of 2024 will continue to receive full net metering benefits for the life of their system. The net metering changes do not apply to community solar.
Nevada: The NMR-A credit rate for NV Energy's net metering plan decreased on January 1, 2025. The rate will continue to decrease over time, with further decreases scheduled for 2028. It is lower than the credit rate for NMR-G and NMR-405.
West Virginia: Effective January 1, 2025, West Virginia's net metering rate for residential and commercial solar systems decreased from $0.13 per kilowatt-hour (kWh) to $0.093. While West Virginia does not currently offer community solar, bills to authorize community solar were introduced in the West Virginia Legislature in 2022, 2023 and 2024. A similar bill is expected to be introduced in 2025.
Wisconsin: The Public Service Commission of Wisconsin (PSC) has requested comments from stakeholders and the public on the state’s current net metering policies. Utility representatives claim that net metering shifts grid maintenance costs from solar to non-solar customers, leading to higher energy costs for non-solar households and businesses.
3. Regulatory environment
2025 isn’t only a new year; it’s the start of a new presidential administration. If President-elect Trump keeps his promise to impose sweeping tariffs on U.S. imports, including solar and electric vehicle battery parts, new solar installations will slow. However, domestic solar component manufacturing is on the rise, with many new solar component plants expected to come online in 2025.
Additionally, the solar power industry is a lucrative source of revenue and a significant job creator. It was valued at $25.5 billion in 2024, representing a 20.9% increase from the previous year. Attempts to disincentivize the industry will face bipartisan opposition.
According to a December 2024 press release by the Coalition for Community Solar Access (CCSA), legislative and regulatory acts passed at the state level in 2024 will help make existing community solar programs more efficient. These measures will eliminate bureaucratic hurdles and expand community solar access to individuals and communities through streamlined processes and program enhancements.
4. Subscriber Management Complexities:
Finding financing for community solar projects is often difficult due to several factors, including complexities in subscriber enrollment, uncertainties in customer retention and potential challenges with low-income customer participation.
While technology solutions streamline subscription management, traditional strategies such as transparent communications, accessible customer support, consistent feedback mechanisms and continuous community engagement are essential to customer longevity.
Demonstrating a strong commitment to customer service not only builds trust with your subscribers but also improves the developer's overall image within the community, including financiers.
Solar Simplified offers developers an end-to-end, all-inclusive subscriber management solution that includes marketing, customer acquisition, billing, collections and subscription handling. We offer free acquisition, 100% free churn replacement and a 100% collection guarantee.