The solar energy landscape is constantly evolving, shaped by policy changes, new legislation, and shifting economic factors. March 2025 is proving to be a critical month for solar policy in the U.S., with key developments at both the federal and state levels. From trade tariffs affecting solar supply chains to legislative efforts promoting community solar and energy storage, here’s what’s happening and what it means for the future of clean energy.

Tariffs on steel, aluminum, and Chinese goods shake up the market

Trade policies often have far-reaching effects on industries, and the solar sector is no exception. In early February, former President Donald Trump announced tariffs on steel and aluminum imports before temporarily pausing them. However, the pause is set to expire on March 4, meaning that the tariffs could soon go into full effect.

Additionally, an extra 10% tariff on Chinese goods will be implemented on March 4, following a similar increase that took place on February 3. These tariffs could significantly impact the solar industry, as many solar components—including panels, inverters, and battery materials—rely on imports from China and other nations.

Why does this matter for solar energy?

• Higher costs for solar projects – Increased tariffs could drive up the cost of materials, making solar installations more expensive for businesses and homeowners.
• Potential supply chain disruptions – If imports slow due to higher costs, some solar developers may struggle to get the necessary equipment.
• Opportunities for domestic manufacturing – On the flip side, these tariffs could encourage more investment in U.S.-based solar manufacturing, reducing reliance on foreign-made components.

While these trade policies aim to protect American industries, they could also slow down solar adoption by making systems more expensive. Businesses and consumers looking to invest in solar should stay informed about how these policies may impact pricing and availability.

Iowa moves forward with community solar expansion

Community solar is an innovative way for individuals and businesses to access clean energy without installing solar panels on their own property. In Des Moines, Iowa, legislators recently passed a bill out of committee that would establish a new community solar program in the state. The bill is now moving to the full Iowa House of Representatives for consideration.

What is community solar?

Community solar allows multiple participants—such as homeowners, renters, and businesses—to subscribe to a shared solar energy project. These projects, often built in rural or suburban areas, generate electricity that is credited to subscribers’ utility bills. This model makes solar energy accessible to those who can’t install panels on their own properties due to cost, roof space, or homeownership status.

If passed, Iowa’s new program would expand access to renewable energy and provide residents with an affordable way to participate in the clean energy transition.

Missouri considers a three-year community solar pilot program

In Jefferson City, Missouri, Republican lawmakers have introduced legislation to create a three-year community solar pilot program. The proposal aims to help Missourians manage their energy costs while reducing reliance on traditional fossil fuels.

Why is this program important?

• Protects consumers from rising utility rates – As electricity prices fluctuate, community solar provides a stable and often lower-cost alternative.
• Expands access to renewable energy – Not all homes or businesses can install solar panels, but community solar allows them to benefit from solar energy anyway.
• Encourages private investment in clean energy – With state-backed programs, developers may be more inclined to invest in solar projects, boosting local job creation.

If approved, Missouri’s community solar initiative could serve as a model for other states looking to expand access to solar power without requiring major upfront investments from consumers.

Illinois pushes for major energy storage expansion

In Springfield, Illinois, Democratic lawmakers have introduced an ambitious bill that would establish a 15-gigawatt (GW) energy storage target. This would be one of the largest storage mandates in the country, aiming to remove obstacles that prevent new clean energy projects from connecting to the grid.

What is energy storage, and why does it matter?

Energy storage systems, such as batteries, store excess electricity generated by solar panels or wind turbines for later use. This technology is crucial because solar and wind power are intermittent—meaning they only generate energy when the sun is shining or the wind is blowing.

By expanding energy storage capacity, Illinois hopes to:

• Improve grid reliability – Stored energy can be used during peak demand periods, reducing strain on the grid.
• Increase renewable energy adoption – More storage means excess solar and wind power won’t go to waste.
• Create a virtual power plant program – This would allow energy storage owners to contribute stored power back to the grid, essentially acting as a decentralized energy source.

If passed, this bill could make Illinois a national leader in clean energy storage and grid modernization.

California looks to improve its community solar program

California has long been a leader in solar energy, but its community solar + storage program, created under AB 2316, has faced challenges. Now, legislators in Sacramento are introducing a new bill to strengthen the original framework and address issues that have limited the program’s success.

What went wrong with AB 2316?

While well-intentioned, the initial design of California’s community solar program didn’t attract enough viable projects. The California Public Utilities Commission (CPUC) set rules that left only a handful of projects economically feasible, preventing the program from reaching its full potential.

How will the new bill improve the program?

• Adjusts incentive structures – Making it more financially viable for developers to build community solar projects.
• Expands access – Ensuring more residents, including low-income households, can participate in community solar.
• Encourages energy storage integration – Combining solar with batteries to improve energy reliability and reduce reliance on fossil fuels.

If successful, these changes could make community solar more accessible to Californians and serve as a blueprint for similar programs across the U.S.

What’s next for solar policy in 2025?

March 2025 is shaping up to be a pivotal month for solar energy policy. As tariffs threaten to increase solar equipment costs, state governments are stepping up with programs designed to expand access to clean energy. Community solar initiatives in Iowa, Missouri, and California aim to make solar power available to more people, while Illinois’ energy storage target could reshape how the state integrates renewable energy into its power grid.

For homeowners, businesses, and solar advocates, keeping an eye on these developments is crucial. Whether you’re considering installing solar panels, subscribing to a community solar project, or investing in battery storage, policy changes can impact costs and incentives.

At Sunhub, we’re committed to keeping you informed about the latest in solar policy and helping you navigate the shifting landscape of clean energy. Stay tuned for more updates as these legislative efforts unfold!

Would you like to explore solar options for your home or business? Contact Sunhub today to learn how you can take advantage of the latest solar innovations and policies!