Wood Mackenzie: New US community solar dropped by 36% after a record year in the first half of 2025

According to a report published on Tuesday by Wood Mackenzie, a consultancy, and the Coalition for Community Solar Access, U.S. solar community installations fell 36% in 2025's first half compared to the same period of last year. This follows a record 2024.

In the first half 2025, 440 megawatts were added to the community solar capacity. This is down from the 683 megawatts that was added in 2024's first half. Last year, more than 1.8 gigawatts, the largest annual total ever, of community solar was added. The expansion of this zero-emissions energy source in the U.S. is expected to slow down in the next few years due to the fading of federal incentives. Wood Mackenzie's latest forecast for community solar has been reduced by 8% as a result of President Donald Trump’s One Big Beautiful Bill Act, and the federal policy changes that have accompanied it.

Caitlin Connelly, lead author, said: "After a record-breaking year, the market has adjusted to new policy dynamics, and structural bottlenecks." We expect growth to resume once new state programs mature, and federal incentives stabilise. Community solar allows customers to subscribing to a share of a solar project to receive credits on their utility bills. Renters and communities with low to moderate incomes can benefit from this program.

(source: Reuters)