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(January 23, 2025) – The N.C. Clean Energy Technology Center (NCCETC) has released its 2024 annual review and Q4 update of The 50 States of Solar, providing a comprehensive analysis of state-level regulatory and legislative actions affecting distributed solar policy. The report highlights a year of significant policy activity across 47 states, the District of Columbia, and Puerto Rico, with net metering, residential fixed charges, and community solar emerging as the most discussed issues.
Throughout 2024, states engaged in 269 policy and rate changes concerning solar programs, reflecting a shift toward alternative compensation structures and increasing efforts to integrate solar into broader energy policy frameworks. Some of the most active states included Michigan, California, Virginia, Arizona, Maine, Oregon, Connecticut, Massachusetts, and Washington.
Key trends in 2024 solar policy
The report identifies ten major trends in state solar policy, including:
- A transition beyond traditional net metering in multiple states
- Growing integration of distributed solar in multifamily buildings
- Utilities seeking substantial residential fixed charge increases
- Expansion of community solar programs with a focus on low-income participation
- Increased attention to net metering successor tariffs and rate design
- Formal studies informing future solar compensation mechanisms
- Greater consideration of federal funding in state-level solar programs
- The rise of energy storage as part of distributed solar policies
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State-level policy developments
Among the most active states for solar policy in 2024:
- Virginia expanded its shared solar program, while utilities proposed net metering changes.
- West Virginia regulators approved new net metering rules for major utilities.
- Washington initiated a distributed solar valuation study and extended Puget Sound Energy’s net metering program.
- California introduced income-based fixed charges and approved a new community solar program.
- Connecticut extended its community solar program and launched a study on solar successor programs.
- New Jersey revised remote net metering rules and initiated changes to its community solar program.
- Colorado revamped its community solar program to prioritize income-qualified customers.
- Arizona phased out Arizona Public Service’s utility-owned rooftop solar program and introduced a grid access charge for solar customers.
- Alaska adopted new community energy program rules and considered raising its net metering cap.
- Maryland regulators initiated new rules for community solar and net metering under time-of-use rates.
The report also highlights a renewed push by utilities for residential fixed charge increases, with California leading the trend through newly approved income-graduated fixed charges. Additionally, the shift away from traditional net metering toward net billing and alternative compensation structures gained momentum, with a focus on export credit rates and netting intervals rather than additional demand charges or grid access fees.
Fourth quarter solar policy actions
During Q4 2024, 41 states, plus DC and Puerto Rico, enacted 151 policy changes related to distributed solar and rate design. This continued the trend of regulatory shifts observed throughout the year, reinforcing the broader movement toward solar market transformation across the U.S.
As states refine their solar policies, 2025 is expected to bring further debates over net metering alternatives, community solar expansion, and the integration of energy storage into distributed solar frameworks.
Source: N.C. Clean Energy Technology Center
