High Level

Community solar markets experienced stark policy divergence this week. While Massachusetts advanced thoughtful administrative reforms, Montana blocked enabling legislation and Maine adopted retroactive compensation cuts. At the federal level, proposed tax credit phase-outs prompted intense industry backlash. These developments together signal instability in some markets, but also pathways to resilience through smart regulatory design.

Full View

Montana Governor Vetoes Bipartisan Community Solar Bill
Montana Free Press, June 17, 2025

  • What happened: Governor Greg Gianforte vetoed SB 188, a bill to establish community solar in Montana.
  • Who did it: The bill was passed with overwhelming bipartisan support in both chambers; the veto was issued by the Governor.
  • Why they did it: Gianforte argued that the bill lacked adequate guardrails and would expose ratepayers to “unreasonable costs” through PSC-set credit rates.
  • Stakeholder views: Advocates like the Montana Renewable Energy Association said the bill already included voluntary constraints and economic criteria. The veto came despite support from 100 of 150 legislators.
  • What happens next: The Secretary of State is conducting a poll to determine if the legislature will attempt a rare veto override.
    Source

Maine Passes LD 1777, Cuts Compensation for Solar Projects
Maine Public Advocate, June 20, 2025

  • What happened: The Maine Legislature passed LD 1777, restructuring its Net Energy Billing program with lower compensation rates and new consumer protections.
  • Who did it: The bill was backed by Public Advocate Heather Sanborn and passed with bipartisan support.
  • Why they did it: The legislation aims to control rising ratepayer costs, projected at over $1.2 billion through 2040 under the current model.
  • Stakeholder views: Sanborn praised the changes as delivering “real relief” to ratepayers. CCSA warned the retroactive cuts threaten project viability, investor trust, and existing contracts.
  • What happens next: The bill is now law; legal and financial challenges may follow as developers seek to stabilize contract terms under the revised framework.
    Source

Senate Finance Committee Proposes Clean Energy Tax Credit Phase-Out
PV Magazine & SEIA, June 16–17, 2025

  • What happened: The Senate Finance Committee released reconciliation text phasing out 45Y and 48E credits by 2028 and ending residential solar credits within six months.
  • Who did it: The proposal was drafted and released by Senate Republicans.
  • Why they did it: The draft aims to reduce federal expenditures on clean energy and reallocate funds for other policy priorities.
  • Stakeholder views: CCSA President Jeff Cramer called the proposal a “rollback” that would “weaken America’s energy leadership.” SEIA President Abigail Ross Hopper said it would “strip the ability of millions… to choose energy savings and resilience.”
  • What happens next: Industry lobbying efforts are intensifying. The final reconciliation bill is under negotiation, with amendments possible before passage.
    Source
    Source

Massachusetts Updates SMART Program to Enable More Deployments
Massachusetts DOER, June 20, 2025

  • What happened: The Department of Energy Resources adopted emergency regulations for SMART 3.0, updating solar incentive structures and program administration.
  • Who did it: The Massachusetts DOER, following consultations with community solar stakeholders and energy advocates.
  • Why they did it: To address interconnection bottlenecks, speed deployment, and align state policy with federal incentive timelines under the IRA.
  • Stakeholder views: SEBANE, MACDC, LISC, and other groups praised the update for restoring predictability and opening access to low-income and municipal projects.
  • What happens next: The emergency regulations are now active, pending final public comment and adoption later this summer.
    Source

What’s the So What?

Community solar faces increasing fragmentation in its policy environment. Retroactive payment reductions in Maine, combined with federal credit rollbacks, introduce major financial uncertainty that could force developers to withdraw from key markets. Montana’s veto blocks progress where stakeholder alignment already existed. These actions risk stalling a growing sector just as distributed energy gains urgency.

Conversely, Massachusetts’ SMART 3.0 revisions show that targeted administrative reform can restore momentum. Clear signals, equitable access, and regulatory alignment with federal tax law are now key determinants of state program success. Without those elements, investor confidence will erode, subscriber growth will falter, and local economic benefits will be lost.

Bibliography