U.S. Community Solar Installations Plunge 36% in First Half of 2025 After Record-Breaking 2024

New installations of U.S. community solar projects dropped by 36% in the first half of 2025 compared to the same period last year, following a record-setting 2024. According to a report from Wood Mackenzie, around 563 megawatts were added between January and June, as rising project costs, interconnection challenges, and delays in permitting and siting led to the sharp decline in growth following last year’s surge.

Community solar projects enable residents and businesses without access to rooftop solar to buy power from shared local solar installations, and they benefit from state-level programs supporting clean energy. Analysts note, however, that supply chain and development obstacles—rather than waning demand—were the main factors curbing expansion so far this year. They expect that nationwide growth will pick up in 2026 as federal and state policy incentives take further effect.

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