The Solar Policy Scoop: September 2025

2025-10-09
Explore ACE’s Solar Policy Scoop for Sept 2025—ITC guidance, tariffs, interconnection growth, legal battles, and key state solar updates.

New ITC Safe Harbor Guidance Strengthens Renewable Energy Rules


In mid-August, updated guidance was released on the solar Investment Tax Credit (ITC) safe harbor. Under the revised rules, projects larger than 1.5 MW must meet the Physical Work Test instead of using the 5% threshold. This policy change could impact the pace of renewable energy project development and financing strategies.


New Tariffs on Imports from India May Affect Solar Supply Chains


At the end of August, a federal executive order imposed a 25% tariff on all imports from India. These tariffs are expected to influence renewable energy supply chains, including materials for solar projects and energy storage systems.


Record Growth in U.S. Interconnection Agreements


Federal interconnection reforms are showing results. In 2024, U.S. grid interconnection agreements surged to 75 GW, a 33% year-over-year increase. Analysts note that streamlined queue processes are accelerating renewable energy adoption and helping connect large-scale solar and storage projects to the grid faster.


Legal Challenges Over Solar Interconnection Delays


In California, renewable energy advocates have raised concerns about utilities delaying interconnection for solar and battery storage systems. A formal complaint seeks penalties, underscoring the importance of timely grid access for advancing renewable energy deployment.


Net Energy Metering Policy Faces Renewed Scrutiny


The state’s Supreme Court has ordered a lower court to revisit its ruling on updated net energy metering (NEM) regulations. This case could reshape the future of rooftop solar adoption and distributed renewable energy resources, with direct implications for homeowners and small-scale battery storage.


Debate Over Solar Development on Federal Lands


Nevada officials have requested federal clarification on stricter permitting rules for solar development on public lands. Several large-scale renewable energy projects, including those paired with energy storage, face delays due to the review process, raising questions about future deployment timelines.


Arizona Moves Toward Repealing Renewable Energy Standard


Arizona regulators have voted to begin repealing the state’s Renewable Energy Standard and Tariff (REST). Originally set in 2006 to require 15% renewable energy by 2025, the rollback could affect long-term solar and energy storage growth in the region.


Maryland Launches Solar Permitting Grant Program


The Maryland Energy Administration has rolled out a $3.9 million program to support counties and municipalities in transitioning to automated solar permitting. By streamlining residential renewable energy approvals, the initiative aims to expand rooftop solar installations and related battery storage adoption.


New Jersey Expands Community Solar and Energy Storage Programs


New Jersey has enacted two major clean energy policies. The first adds 3 GW of new community solar capacity starting in October, while the second launches the Garden State Energy Storage Program. Together, these measures will enhance access to renewable energy and improve grid resilience through expanded storage capacity.

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