U.S. solar policy in December 2025: Bipartisan moves, regulatory fixes, and grid reform prospects

The U.S. solar industry saw a range of notable policy developments in December as lawmakers, regulators, and industry groups advanced efforts to expand community energy, improve solar program design, and modernize grid interconnection frameworks. These moves come amid ongoing federal policy uncertainty that continues to reshape the domestic renewable energy landscape. 

Ohio advances community energy legislation

In Ohio, the House of Representatives unanimously passed a bipartisan bill intended to enable community energy programs, including community solar initiatives, across the state. The measure, approved with broad support in committee and on the House floor, aims to allow Ohio residents to subscribe to locally developed energy projects and receive utility bill credits in return. The bill’s passage reflects growing state-level interest in expanding clean energy access through community-based models. 

Virginia overhauls shared solar program rules

In Virginia, regulators with the State Corporation Commission finalized revisions to Dominion Energy’s Shared Solar minimum bill framework. The changes are intended to make the utility’s solar program more workable for customers, including low-income subscribers, by addressing structural flaws that previously limited participation and value. Industry advocates noted the updated rules could broaden solar adoption by improving customer credits and access, though some contend further enhancements are still warranted.

Maryland storage advocacy grows

Environmental and consumer groups in Maryland urged the Public Service Commission (PSC) to accelerate procurement of new energy storage capacity under the state’s Next Generation Energy Act. The legislation authorizes competitive solicitations for up to 1,600 megawatts (MW) of storage, with advocates arguing that prompt action would help capture expiring federal incentives while bolstering grid flexibility.

DOE reorganizes, removing key renewable offices

At the federal level, the U.S. Department of Energy’s organizational chart was revised again, removing legacy offices dedicated to renewable energy, energy efficiency, and clean energy demonstrations. The Trump administration has shifted emphasis toward fossil fuel and nuclear-focused divisions, effectively de-emphasizing dedicated clean-energy program offices that historically supported grid decarbonization and solar deployment. Critics warn these changes could erode federal support for renewables at a time of significant policy transition; DOE officials assert the reorganization better reflects a diversified energy strategy. 

Interconnection reform report highlights potential breakthrough

A new report from the Solar and Storage Industries Institute (SI2) outlined opportunities tied to a proposed interconnection reform now before the Federal Energy Regulatory Commission (FERC). The analysis highlights the Southwest Power Pool’s (SPP) Consolidated Planning Proposal (CPP), which seeks to combine long-term grid planning with more predictable cost allocation for new connections, as a potential model for reducing solar and storage interconnection backlogs. Reform advocates argue that aligning transmission planning and interconnection queue processing can cut delays and increase developer certainty. 

Trends driving state solar action

State policymakers continue to respond to the evolving federal landscape. Several states have moved to expand or revise solar and distributed energy policies, including updating shared solar frameworks, enabling dual-use agrivoltaic programs, and supporting new utility-scale and community projects. These efforts signal that, although federal direction remains in flux, state action remains a core driver of solar growth across varied regional markets.

Outlook and industry reaction

Industry stakeholders broadly welcomed the bipartisan and regulatory efforts at the state level to broaden solar access and improve market mechanisms such as interconnection. However, uncertainty around federal incentives, tax credits, and the broader policy environment continues to challenge long-range planning for developers and investors. Electricity markets and project pipelines are now shaped by a complex mix of state innovation, regulatory reform, and shifting federal priorities, making December’s policy actions a microcosm of the broader U.S. solar policy landscape.