Warning: This blog is full of holiday puns. Some festive, others ugly-sweater-awkward. Groans will likely occur. Proceed with caution (and maybe a cup of cocoa).
Sing it with us: “On the twelfth day of DG (distributed generation), the industry gave to me…” a year packed with plot twists, policy puzzles and yet, plenty to celebrate.
2025 may not exactly have been a silent night for distributed generation, but it was a resounding chorus of resilience with a few bright milestones sprinkled in.
So, take a few moments to join us at REC Solar as we unwrap the year’s highlights and hurdles:
Twelve Solar Surprises
Strong first and second quarters delivered over 1 GW of commercial solar, the industry’s largest first half of the year ever, according to the Solar Energy Industries Association (SEIA). On top of that, solar-plus-storage installations also surged in the first half of 2025.
By Q3, commercial solar volumes stayed strong at 554 MW (up from 509 MW in Q3 2024), setting the stage for what may end up being a record-breaking year.
These milestones are the star on top of our holiday tree, proving a healthy pipeline for commercial solar in 2025.
Eleven Policy Twists
Untangling last year’s holiday lights might have been tricky, but navigating 2025’s policy changes was a whole different ballgame.
There were strict Investment Tax Credit (ITC) eligibility tests, evolving bonus credit rules, and new compliance documentation — all while state-level net metering and interconnection changes added even more complexity.
And we’re not even talking about minor tweaks. These were significant shifts that required careful planning, so businesses quickly learned that partnering with IPPs became crucial to keeping their projects moving.
In doing so, they turned a potential policy fruitcake into something far more palatable: progress in the face of regulatory changes.
Ten Tidings of Growing Energy Consumption
After more than a decade of little change, commercial electricity consumption is now on the rise, largely fueled by data centers and manufacturing operations. For businesses, this surge isn’t exactly seasonal cheer. You could say it was more of a wake-up call.
More demand meant more strain, higher costs and bigger questions about how to keep the lights twinkling when the grid says “bah humbug.”
And that’s why distributed energy solutions have gone from nice-to-have to the must-have gift of the season.
Nine Gifts of Long-term Stability
Distributed generation PPAs remained a key instrument in the clean energy orchestra of businesses committed to cost control.
Organizations with the foresight to lock in agreements are now sitting back, sipping hot cocoa and enjoying predictable costs — while others who delayed (or decided to self-own) projects have been facing rate surprises that even Scrooge himself would side-eye.
In spite of ongoing policy uncertainty and market volatility, PPAs are still proving their worth: no capital outlay, predictable payments and no maintenance headaches. That’s right, we’re talking long-term stability, wrapped with a bow.
Eight Cheers for Fuel Cells
Fuel cells are more than solar’s sidekick — they’re the holiday hero some didn’t see coming. They deliver clean, reliable energy that keeps critical operations up and running while reducing grid dependence.
And what’s more, fuel cells are now eligible for the ITC under recent policy updates. And with REC Solar managing 40+ MW of fuel cells across 70 customer sites, we’re helping organizations achieve resilience and sustainability goals without compromise.
For organizations focused on uptime and cost control, fuel cells are the ultimate surprise — kind of like getting the best gift at the White Elephant party.
Seven Sparkling Special Districts
Special districts tackled tough energy challenges in 2025 like they were wrapping an odd-shaped gift. It may have been a little bit tricky at first, but worth it at the end.
Rising energy costs, sustainability goals and resilience challenges? All handled with distributed generation assets.
Special districts and municipalities often juggle tight budgets and heavy energy loads, so predictable costs are the ultimate holiday win. By adopting distributed generation assets — like solar, storage, fuel cells and more — they’re able to turn rate hikes and grid uncertainty into clean power that keeps operations running smoothly.
Six Repowered Systems
Repowering ramped up in 2025 as businesses looked to upgrade their aging solar systems.
Why? Repowering increases the life of your existing investment, boosts energy output with newer and more efficient technology, and opens the door for storage or EV charging.
Think of it as finally swapping out last year’s dull and flickering lights with a dazzling new set: brighter, better and ready to shine for years to come.
Five Percent Safe Harbor
This year brought a big policy shake-up as the 5% safe harbor rule — once the golden ticket for locking in tax credits — was phased out for most projects.
Developers who raced to meet the deadline found the season more frantic than festive, with stress replacing sparkle. Now that the window has closed, the message is clear: timing matters. And this year’s scramble will be remembered as a tough holiday rush.
Four Festive Fixes (For Energy Independence)
Battery storage surged this year, fueled by rising utility rates, anticipated electricity demand surges and falling costs.
Storage helps organizations gain peak-load flexibility, which leads to more energy independence — making it the ultimate holiday gift set for businesses facing grid uncertainty.
After all, nothing says holiday cheer like calling your own energy shots.
Three Cheers for Lower Bills
Commercial utility rates arose with a clatter, with some states experiencing double-digit hike frights instead of holiday delight in recent years.
Solar + storage stepped in as the ultimate hedge, delivering predictable costs and shielding businesses from future surprises.
While a strained grid was singing the blues, solar was jingling all the way — bringing stability, savings and a little sparkle to energy planning.
In a season of rising costs, clean energy proved to be the gift that keeps on giving.
Two Trends Lighting the Way
Public Safety Power Shutoffs in areas prone to wildfires — like Hawai‘i and California — can turn holiday cheer into a blackout faster than you can say “bah humbug.” This is when microgrids step in to “island” facilities, keeping those holiday parties going even when the grid says aloha.
Resiliency isn’t just a shiny ornament, it’s a strategic must-have for many industries looking for a strategic way to ensure reliability and peace of mind.
Because in a season of uncertainty, microgrids are the Rudolph guiding businesses through those stormy nights.
One Big Ol’ Policy Change
The One Big Beautiful Bill Act (OBBBA) was the ultimate plot twist. And its layers of complexity had even the most seasoned developers feeling like they were assembling a gingerbread house without instructions.
OBBBA didn’t have the industry singing carols, but it did highlight the importance of strategic planning. At REC Solar, we made a list, checked it twice, and responded by structuring projects so those achieving COD through 2029 can still capture the ITC.
And for the coming year?
It’s all about adaptation: creative compliance, locking in incentives, and keeping projects moving despite regulatory changes.
Bringing the Chorus into 2026 and Beyond
While 2025 had its share of high, low and discordant notes, distributed generation still managed to rise above the noise.
So, here’s to the future and another verse in the DG song— one that is ready for more milestones, more momentum, and more opportunities to shine even brighter.
Because no matter what new policies or market shifts appear, REC Solar is still committed to ensuring that the future of distributed energy remains merry and bright.