If 2025 proved anything, it’s that the US energy transition is no longer theoretical; it’s happening under real political, economic and grid constraints. This past year brought meaningful shifts at both the federal and state levels, reshaping how clean energy gets built, where it gets built and who benefits. As we look ahead to 2026, one theme rises above the rest: affordability. For Altus Power, affordability isn’t a side benefit of the energy transition – it is core to the mission, guiding the company’s focus on delivering locally generated, cost-stable solar that lowers bills for businesses and households alike. With electricity prices steadily increasing, policymakers are looking for practical solutions to ensure the lights stay on and utility bills remain in check. It’s never been clearer that every electron, regardless of source, matters
On July 4, President Trump signed HR 1 into law, resetting the federal clean energy landscape. While the final legislation represented a step back from the growth incentives the industry had relied on in recent years, it avoided the most severe proposals and preserved a runway for continued deployment. Most importantly, with the finalization of the legislation, clean energy developers now have clarity on the tax policy landscape for the years ahead. While tariff and trade policy will continue to inject uncertainty, disciplined investors with a long-term view will continue to bring new clean generation to market -- particularly projects that are grounded in realistic economics, aligned with actual demand and designed to operate within grid constraints.
However, the change did introduce complexity at a moment when the grid is already under strain. Demand continues to rise rapidly, driven by data centers, AI, electrification and economic growth, while supply additions lag. In the near term, these market fundamentals may create pricing volatility, but they will not stop clean energy deployment. Instead, they will force a market correction, one defined by more disciplined underwriting, fewer marginal projects reliant on incentives alone and a greater emphasis on load-adjacent siting that delivers power where it’s needed most. This shift favors developers and owners that have historically prioritized these fundamentals. Distributed solar, particularly when paired with storage, can help relieve grid stress rather than exacerbate it by serving local load, smoothing peak demand and improving system resilience -- making it an increasingly important component of a constrained and evolving grid. This more selective, fundamentals-driven environment aligns closely with how Altus Power has long evaluated projects.
2025 State Action: Progress – and Pushback
Amidst the federal uncertainty, some states took proactive measures to provide clean energy investors with policy certainty to continue to deploy scarce capital to the benefit of their residents and businesses. In 2025, we saw a clear shift toward state-led solutions that prioritize both affordability and reliability. New Jersey codified a permanent community solar program. Massachusetts advanced SMART 3.0. Illinois passed the Clean and Reliable Grid Affordability Act. These policies reflect an understanding that clean energy is no longer just about emissions and the environment; it’s about stabilizing prices and keeping the lights on.
But not all state actions this year moved the industry forward. Maine became an example of how well-intentioned policy can go sideways. Lawmakers passed LD1777, restructuring the state’s net energy billing framework and imposing new charges and retroactive changes on existing community solar projects – a move that undermines long-standing contracts and investment expectations. Rather than slowing rising electricity costs, the approach ended up creating uncertainty for investors and developers, illustrating how quickly a state can move backward if policy stability isn’t prioritized.
Addressing Misconceptions and Stabilizing Supply
Across the country, voters and policymakers alike are focused on energy affordability. There continue to be widespread misconceptions about what actually drives power prices. While the electricity market can be complex, the fundamentals of supply and demand are always in play. Solar doesn’t raise bills -- it helps stabilize supply, hedges against volatility and adds capacity without costly grid upgrades that get passed onto ratepayers. Community solar, when protected by predictable policy, delivers bill relief to households while adding incremental power to the grid to the benefit of all utility customers: an increasingly valuable tool in policymaker's toolbox.
2026 Outlook
There are several trends to watch as we head into 2026:
- Electricity demand will continue to grow, and we need power that can be added to the grid quickly. Solar remains the fastest and most cost-effective way to achieve that. At Altus, we believe in an all-of-the-above approach -- every electron and dispatchability matters -- but speed and affordability are the near-term priority.
- State program expansions will be critical in offsetting the federal tax credit phase out. Solar is poised to scale further as affordability dominates the political discussion, particularly heading into the midterms.
- We expect a shift toward post-ITC program structures, increased industry consolidation and continued focus on supply chain challenges and tariffs.
- To support this next phase of growth, states must focus on fundamentals: permitting reform and accelerated interconnection timelines. Most importantly, stable, predictable policies that attract long-term capital rather than spook it will be paramount.
2025 was a year of recalibration. 2026 will be about execution: meeting rising demand, lowering bills and building a power system that works for customers, communities and the grid. Ultimately, affordability is the throughline -- connecting grid reliability, customer value and the long-term viability of the energy transition.
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