A National Trend with Local Consequences
Community solar, once hailed as the most accessible way to bring renewable energy to renters and households without ideal rooftops, is facing serious setbacks. According to Wood Mackenzie, new community solar installations in the United States fell by 36 percent in the first half of 2025 compared to the same period in 2024. (Reuters coverage)
The decline raises questions about whether Michigan, which has struggled to expand community solar programs, can avoid the pitfalls that are slowing adoption nationwide.
Why Community Solar Matters
Community solar allows households to buy or subscribe to a share of a larger solar array and receive credits on their utility bills for the electricity it generates. It is especially important for:
- Renters who cannot install rooftop panels
- Homeowners with shaded or unsuitable roofs
- Low income families who benefit from lower upfront costs
In Michigan, where debates over large solar farms and farmland use dominate headlines, community solar offers a pathway for more equitable access to clean energy.
What Is Driving the Decline
Analysts point to several key factors:
- Policy uncertainty: States without clear long term support are seeing projects stall.
- Utility resistance: Some utilities argue that community solar shifts grid costs unfairly to other customers.
- Financing hurdles: Rising interest rates and changing tax credit structures make projects harder to fund.
In states like California, where regulators cut net metering benefits for solar users, community solar has slowed dramatically. Michigan risks facing similar headwinds if it does not provide stable rules and incentives.
Michigan’s Position in the Debate
Michigan currently has only a limited number of community solar projects, mostly pilots. Advocates have pushed for legislation that would allow broader participation, but utilities have pushed back, citing cost concerns.
If the national slowdown is any indication, Michigan’s community solar future will depend on whether lawmakers can create a clear, supportive framework. Without it, the state risks missing an opportunity to make solar accessible to more households beyond those who own single family homes.
Why This Matters for Consumers
For everyday Michiganders, the decline in community solar means fewer chances to save money on energy bills through shared solar. It also limits the ability of cities and rural areas alike to meet clean energy goals in a way that is inclusive.
As solar costs continue to fall, the question is not whether the technology works, but whether the policies in place will allow more residents to benefit.
Sources
- Reuters: “New US community solar fell by 36% in first half of 2025 after record year” — https://www.reuters.com/business/energy/new-us-community-solar-fell-by-36-first-half-2025-after-record-year-wood-2025-09-30/
- Solar Energy Industries Association: “Community Solar Basics” — https://www.seia.org/initiatives/community-solar
- Michigan Advance: “Community solar push grows in Michigan” — https://michiganadvance.com/2023/05/12/advocates-renew-push-for-community-solar-in-michigan/
