The 50 States of Solar: States Focus on Value of Distributed Generation, Advanced Rate Designs, and Energy Storage in 2025
Raleigh, NC – (January 22, 2026) The NC Clean Energy Technology Center (NCCETC) released its 2025 annual review and Q4 update 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, third-party ownership.
The report finds that 49 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during 2025 (see figure below), with the greatest number of actions related to net metering policies, community solar, and residential fixed charge increases. The most active states were Colorado, Illinois, Connecticut, Virginia, Maine, and New Jersey.
2025 Policy Action on Distributed Solar Policy and Rate Design
The report identifies ten solar policy trends across the year:
- Net billing transitions spurred by utility proposals;
- Incorporating net metering into advanced rate design structures;
- Focusing on distribution generation paired with energy storage;
- Releasing cost-benefit analyses of distributed generation;
- Reviewing revisions to aggregate program caps;
- Integrating consolidated billing into community solar programs;
- Approving full increases in residential fixed charges;
- Responding to the loss of federal incentives;
- Proposing new fees for distributed generation customers; and
- Considering iterative revisions to net metering policies.
“Policymakers placed a significant focus on the proper valuation of distributed generation during 2025,” stated Rebekah de la Mora, Senior Policy Analyst at NCCETC and lead author of the report. “Along with studies and investigations into how to value distributed generation, policymakers and utilities looked at integrating advanced rate designs and energy storage into net metering programs, as these can help reflect the ‘true’ value of distributed generation.”
A total of 386 state and utility level distributed solar policy and rate changes were proposed, pending, or decided in 2025. The report notes that ten of the most notable states in 2025 for solar policy developments were:
- Nevada, where utilities proposed net billing structures and mandatory demand charges, and lawmakers established low-income multifamily virtual net metering;
- Virginia, where regulators reviewed community solar minimum bills and net metering successors, while lawmakers created a distribution cost sharing program;
- West Virginia, where regulators approved a net metering successor tariff for Appalachian Power and Wheeling Power;
- Idaho, where utilities considered new export credit rates and regulators revised the export credit rate revision process;
- Maine, where lawmakers revised the state’s net metering program and initiated development of a new compensation program, while regulators investigated interconnection issues;
- Illinois, where utilities transitioned to net billing, regulators released a report on the value of distributed generation, and lawmakers enacted an overarching energy bill;
- Colorado, where utilities considered changes to incentive programs and community solar while also proposing flexible interconnection for net-metered customers;
- Hawaii, where utilities proposed additional programs for community solar and limited-export net metering;
- Washington, where an investor-owned utility transitioned to net billing, regulators considered meter socket adapters, and researchers published an interim value of solar study; and
- Massachusetts, where researchers released a grid services roadmap and regulators made changes to interconnection, community solar, and solar incentives.
“Throughout 2025, policymakers and utilities acted to streamline distributed resource additions to the grid,” noted Vincent Potter, Project Manager at NCCETEC. “Regulators considered or adopted revised interconnection standards for distributed generators, partially in response to the abrupt conclusion of federal tax credits. Also, policymakers examined measures to increase distributed generation deployment through new incentive programs, pairing with energy storage, and increasing program capacity.”
During Q4 2025, 44 states, plus DC and Puerto Rico, took action on distributed solar policy or rate design, with a total of 215 actions tracked in Q4.
View the 50 States of Solar 2025 annual review and Q4 update Quarterly Report Executive Summary
View and Purchase the 50 States of Solar Q4 2025 Quarterly Report
ABOUT THE NC CLEAN ENERGY TECHNOLOGY CENTER
The NC Clean Energy Technology Center, as part of the College of Engineering at North Carolina State University, advances a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices and policies. It serves as a resource for innovative, sustainable energy technologies through technology demonstration, technical assistance, outreach and training. For more information about the Center, visit: http://www.nccleantech.
Media Contact: Shannon Helm, NCCETC, shannon_helm@ncsu.edu