The NC Clean Energy Technology Center (NCCETC) released its Q2 2025 edition of “The 50 States of Solar.” The quarterly series provides insights on state regulatory and legislative discussions and actions on distributed solar policy, with a focus on net metering, distributed solar valuation, interconnection rules, community solar, residential fixed charges, residential demand and solar charges, financial incentives and third-party ownership.
The report finds that 48 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during Q2 2025 (see figure below), with the greatest number of actions continuing to address net metering policies (68), community solar policies (48), and residential fixed charge or minimum bill increases (39). A total of 252 distributed solar policy actions were taken during Q2 2025, with the most actions taken in Colorado, Connecticut, Virginia, Minnesota, New York and New Jersey.
Q2 2025 Policy Action on Net Metering, Rate Design and Solar Ownership
The report identifies three trends in solar policy activity taken in Q2 2025: (1) states initiating studies into the valuation of distributed energy, (2) states supporting consumer protection measures for third-party owned systems, and (3) states adjusting and expanding property tax incentives for solar energy.
“This quarter, the value of distributed energy and solar across the country piqued the interest of state policymakers and regulators as they continue to refine their distributed generation compensation programs, with a number of states undertaking studies to provide insight into this value,” observed Cleo Carter, Policy Analyst at NCCETC. “These studies will evaluate the potential costs and benefits associated with distributed generation and provide recommendations on how those characteristics should be valued.”
The report notes the top five distributed solar policy actions of Q2 2025:
- Dominion Energy Virginia proposing a net-metering successor tariff;
- The Montana Legislature passing, and the Governor vetoing, legislation enabling community solar;
- The Delaware Sustainable Energy Utility releasing its value of solar study;
- The Massachusetts Department of Energy Resources filing 3.0 updates to the SMART program; and
- Maine policymakers enacting several changes to the state’s net energy billing program.
“As solar deployment continues across the country, decision-makers aimed to advance consumer protection for third-party owned systems this quarter,” noted Caitlin Flanagan, Policy Analyst at NCCETC. “Lawmakers implemented new consumer protection provisions and instigated investigations into consumer protection issues regarding solar leases, power purchase agreements and other third-party financing and ownership structures.”
News item from the NC Clean Energy Technology Center
“The report identifies three trends in solar policy activity taken in Q2 2025: (1) states initiating studies into the valuation of distributed energy, (2) states supporting consumer protection measures for third-party owned systems, and (3) states adjusting and expanding property tax incentives for solar energy.”
The thing I see here on DER (valuation). California for instance “crafted”, (foisted) NEM 3.0 on solar PV adopters and changed the NEM credit from a once 1:1 based on retail bundled energy costs to “net Billing” at the wholesale energy cost a severe reduction in energy credits. As electric utilities don’t have to procure property, get a right of way, file CEQA documents, buy, install or maintain and repair the DER system on a residence or small business, these ‘avoided costs’ are not taken into account above and beyond the wholesale cost of electricity. Yet, there is a trend for electric utilities to tack on fees and taxes with solar PV connection fees to insure individuals have zero energy credits left at the end of the month.