New U.S. community solar installations fell 36% in the first half of 2025 versus the same period in 2024, after a record-breaking year, according to Wood Mackenzie. Developers added about 563 megawatts between January and June, but rising project costs, interconnection backlogs and delays in permitting and siting have sharply cooled the market’s momentum.
Community solar lets households and businesses without rooftop arrays subscribe to power from shared local solar farms, often under state-supported clean-energy programs. Analysts stress that tightening supply chains and development bottlenecks—rather than a drop in customer interest—are responsible for the slowdown. They expect growth to rebound in 2026 as new federal and state incentives fully take effect.