# **The State of Solar in 2024: Industry Trends and What to Expect in 2025**
The solar industry faced significant challenges in 2024, particularly in the residential sector. However, there are signs of recovery, and understanding the latest trends can help homeowners and businesses make informed decisions. Whether you’re considering solar panels for your home or looking at larger-scale commercial projects, staying informed about market conditions is essential.
## **Residential Solar Decline in 2024**
In 2024, distributed solar installations in the U.S. fell by **11%**, largely due to a **25%-31% drop in residential solar** installations compared to 2023. This decline stemmed from rising interest rates, financial strain on solar companies, and major policy changes—particularly in California.
2023 had provided a brief surge in residential solar, fueled mainly by homeowners rushing to install systems before California’s **Net Metering 2.0** phased out. When the new, less favorable net metering rules took effect in 2024, demand slowed dramatically, impacting solar companies across the sector.
## **Commercial and Community Solar Buck Industry Trends**
While residential solar struggled, other segments of the market performed
Original Article: https://pv-magazine-usa.com/2025/03/17/community-solar-up-42-ci-up-18-residential-down-25/
