The NC Clean Energy Technology Center (NCCETC) released its Q3 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 45 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during Q3 2025, with the greatest number of actions continuing to address net metering policies (57), residential fixed charge or minimum bill increases (43) and community solar policies (40). A total of 217 distributed solar policy actions were taken during Q3 2025, with the most actions taken in Connecticut, Colorado, Minnesota, New York, Arizona and California.
Q3 2025 policy action on net metering, rate design and solar ownership
The report identifies three trends in solar policy activity taken in Q3 2025: (1) utilities continuing to transition to net-billing tariffs, (2) states and utilities pursuing supporting mechanisms for community solar, and (3) states responding to the loss of federal incentives.
Read Solar Power World’s story about solar policy advocacy efforts turning to the states here.
“After the federal government passed HR1 in July, states are revising programs and guidelines to maximize use of the existing investment and production credits,” said Rebekah de la Mora, senior policy analyst at NCCETC. “Regulators are revising interconnection rules to help projects connect to the grid before the federal deadline for operating, implementing extensions and exceptions for projects under incentive programs and considering program expansions to ‘make up’ for the loss of the credits.”
The report notes the top five distributed solar policy actions of Q3 2025:
- The Public Utilities Commission of Nevada adopting new demand charges for Nevada Power and a new netting interval for Sierra Power;
- PacifiCorp requesting approval for a net metering successor tariff in Washington;
- The West Virginia Public Service Commission approving net billing for Appalachian Power and Wheeling Power;
- The Puerto Rico Energy Bureau beginning an investigation into community solar; and
- Colorado Springs Utilities proposing exclusive rates for net-metering customers.
“States and utilities continue grappling with the proper compensation structures for distributed generation. In Q3 2025, multiple utilities proposed and received approval for new net billing tariffs,” said Brian Lips, senior project manager at NCCETC. “Utilities’ netting billing tariff intervals typically range from instantaneous netting to hourly netting, in comparison to the standard monthly interval for net metering.”
News item from the NC Clean Energy Technology Center
Hi Kelsey,
Thanks for the article. I find it a bit confusing though because the title implies that states are “working to make up” for the loss of the tax credit, but when I read further, much of the “actions” states are taking are working directly against solar. In your Top 5 list, at least 3 of the 5 are negative; moving to a net billing tariff (from net metering) is not good for solar. I doubt an investigation in community solar is good, and the Colorado Springs Utilities proposal to increase the fixed charges and reduce the export rates is terrible for solar. I work for a residential solar installer in CA and have not seen any positive action by the state to help solar in recent months or years, so this article caught my eye. For anyone who is just skimming headlines or who isn’t familiar with solar, this article will give them the exact wrong impression of whats going on.
Agreed. Nevada’s PUC approved implementing a 15 minute true up for NEM. This is not the state “Stepping Up”. This is the state working with the utility company to reduce the benefits of solar.
The headline refers to the quote: “After the federal government passed HR1 in July, states are revising programs and guidelines to maximize use of the existing investment and production credits,” said Rebekah de la Mora, senior policy analyst at NCCETC. “Regulators are revising interconnection rules to help projects connect to the grid before the federal deadline for operating, implementing extensions and exceptions for projects under incentive programs and considering program expansions to ‘make up’ for the loss of the credits.”
And further details can be found in the referenced report: https://nccleantech.ncsu.edu/wp-content/uploads/2025/10/Q3-25_SolarExecSummary_Final-1.pdf