The US solar industry is constantly evolving and expects big changes in 2025. From potential policy shifts to technological advancement, solar businesses and homeowners must stay up–to–date to adapt to upcoming changes. Also, Trump is back in the presidency and has already taken steps that surprised many people. Look at the six big changes in the US solar industry in 2025. 

Major 6 Changes in the US solar industry 

While the solar industry is booming globally, some big changes in the US solar industry could possibly happen in 2025. 

Trump Solar Policies

For the second time Donald Trump comes to the presidency, his administration may roll back existing solar incentives and focus more on fossil fuels. Here are the potential steps involved:

  • Changes to the Solar Investment Tax Credit (ITC): The current 30% federal tax credit for solar installations lets you claim 30% rate is available until 2033, after that it will drop to 26%. These incentives make switching to solar more accessible and affordable. 
  • State-Level Resistance: Some states may continue offering incentives even if federal support weakens.

In simple words: Solar businesses should prepare for potential changes in incentives and push for state-level solar policies.

These can be the impacts of new administrations: 

The IRA currently supports clean energy through incentives and tax credits. New administrations might consider canceling or changing it. The IRA has helped homeowners and businesses adopt solar energy by providing financial benefits like tax credits and incentives. If the IRA is repealed, solar energy incentives may decrease, making it more expensive for homeowners and businesses to install solar panels. Removing the IRA could affect solar adoption in the US. 

Made in the USA Solar Panels

The US government is incentivizing American-made solar panels to counter reliance on imports. That means:

  • More tax credits and grants for U.S.-manufactured panels.
  • Potential delays in supply chains as domestic production scales up.
  • Quality improvements as competition among US manufacturers grows.

In some words: While domestic production may take time to meet demand, this shift could stabilize supply chains and reduce dependency on foreign suppliers in the long run.

Loss of Solar Net-Metering

Net metering allows homeowners to sell excess solar energy back to the grid for credits. However, many states are reducing these benefits, meaning:

  • Lower financial returns on solar investments.
  • More focus on battery storage to maximize self-consumption.
  • New pricing structures from utility companies to control grid demand.

In simple words: Homeowners may need to invest in battery storage systems to get the most value from their solar panels.

Virtual Power Plant (VPP) Programs

A Virtual Power Plant (VPP) seamlessly integrates solar panels, batteries, and smart devices to work together, supporting the grid while indirectly driving the demand for battery installations. Expect:

  • Homeowners earn money by sharing stored energy with the grid.
  • Better energy management and grid stability.
  • More utility companies are adopting VPP models to optimize power distribution.

In simple words: Solar panel owners with battery storage can make extra income by participating in VPP programs.

Solar Business Failures & Bankruptcies

Rising costs, shifting policies, and market competition force some solar companies out of business. In 2025, we may see:

  • More bankruptcies among small and mid-sized solar businesses.
  • Consolidation of larger companies, leading to fewer but stronger players.
  • Stricter financing options for new solar businesses.

In simple words: Homeowners should choose reputable solar companies with a solid track record, and businesses must adapt by spreading their services.

Bi-Directional EV Charging

Electric Vehicles (EVs) are becoming energy storage solutions by sending power back to homes or the grid. This technology, known as bi-directional charging, will:

  • Help homeowners store and use excess solar energy.
  • Support grid stability by sharing power during peak demand.
  • Encourage more solar + EV system integration.

In simple words: If you own an EV, you can use it as a backup power source for your home, reducing electricity bills.

Conclusion

The US solar industry may see big changes in 2025, including policy shifts, reduced incentives, and new technologies. While challenges like net metering cuts and business closures may arise, opportunities in domestic manufacturing, VPPs, and EV charging offer growth. Stay connected with us for more information.