Community solar—once one of the fastest-growing corners of the US clean energy market—is losing momentum. (WoodMac)
A new WoodMac report shows installations dropped 36% in the first half of 2025, with just 437 MW added nationwide. After last year’s record growth, that’s a sharp correction, and analysts say the slowdown isn’t temporary.
The culprit? The GOP budget bill, which cut short key tax incentives and upended long-term project planning. Combined with program bottlenecks in major markets like New York and Maine, the sector is now expected to shrink 29% this year and grow only modestly through the rest of the decade.
Bright spots: Despite headwinds, states like New Jersey and Massachusetts are expanding their programs, and corporate subscriptions now account for 53% of total community solar.