Featured in Fault lines – 11-2025

Adapt to thrive

Residential solar in the United States is in a sustained downturn as policy support shifts in key states, with conditions likely to worsen as federal tax credits near expiration. Companies in the sector now depend on cutting costs, expanding products and services, and innovating with customer financing to stay competitive.

By

Ryan Kennedy

03 Nov 2025

Reduced credit for selling electricity back to the grid in key markets such as California has created challenges for US installers, as consumers face sell-back rate cuts of 75% or more. | Image: Sunrun

Residential solar in the United States has undergone a sustained downturn, hampered by high borrowing costs, the decline of net-metering programs in leading state markets, and the sudden loss of federal tax credits. US residential solar installations fell 31% in 2024, and the decline has continued in 2025. Industry titans like SunPower, Sunnova, and loan …

This article is part of pv+

Subscribe digitally to unlock exclusive investigative reporting, expert insights, in-depth analysis, and premium background coverage. Your subscription also includes full access to the digital edition of our magazine.