RE+ Reflections: Emerging Opportunities in Distributed Generation Solar
by Jason Kuflik
The RE+ conference brought together developers, investors, manufacturers, and analysts across the clean energy spectrum. For those of us focused on distributed generation (DG) solar, several clear market themes emerged. Below are some key takeaways shaping opportunities and challenges in the space.
Investment Opportunities
Recent policy shifts — specifically the budget reconciliation bill and Treasury guidance around construction timelines — were a major theme at the show. We have found that this new environment has incentivized savvy IPPs to be more efficient in project development, as it has narrowed the time between finalizing development processes and breaking ground. The DG solar sector continues to see capital flowing to support both commercial & industrial (C&I) and community solar assets. Against this backdrop, the M&A activity remains robust, as GS Power Partners and other developers seek to capture value in the growing sector.
C&I solar continues to be a distinct market attracting infrastructure capital, as these projects generate predictable cash flows with energy cost savings. Investors are drawn to the sector’s contracted offtake structures and potential to scale portfolios.
Community solar, meanwhile, is evolving as its own asset class, with a different risk/return profile and customer base. Subscription models and virtual net metering allow developers to aggregate demand from households and small businesses that cannot host systems on-site. This structure creates opportunities, particularly in states with well-defined community solar programs like New York.
In a competitive environment, execution capabilities, streamlined financing structures and rigorous due diligence will differentiate winners and drive long-term value creation.
Supply Chain and Domestic Content Dynamics
Another consistent theme was the state of supply chains for modules, inverters, racking, and related components. Demand remains strong. However, availability, lead times, and pricing are uneven. While U.S. manufacturers are scaling capacity, imports continue to play a critical role, and navigating this mix has become an important part of project execution.
Developers and EPCs are actively diversifying supplier relationships and building in additional lead-time buffers. This is especially true for projects where long procurement cycles can impact schedules and financing. The ability to secure equipment at the right time and price is increasingly a differentiator in the DG solar market.
Demand Evolution
In addition to attracting capital and supply chain challenges, we noted that the demand profile for DG solar sectors continues to evolve:
- C & I: Corporations and institutions with sustainability goals remain a key growth driver. Many are looking for behind-the-meter or direct-supply projects that provide both cost savings and energy reliability.
- Community Solar: Participation and subscription models are expanding across more markets. This segment is attractive because it can reach a broader customer base while also achieving economies of scale.
Looking Ahead
The DG solar market is entering a period of rapid scale-up and diversification. Growth is strong across C&I, community, and resilience-focused projects, and the industry is finding ways to overcome challenges in supply chains and financing.
The conversations at RE+ underscored that success in DG solar now requires more than delivering panels. It requires operational excellence, customer-centric solutions, and the ability to manage complexity across every stage of the project lifecycle.
For GS Power Partners, these are encouraging signals: the fundamentals of the market are solid, demand is growing, and opportunities are abundant for teams ready to deliver reliable and resilient distributed energy solutions.