A coalition of 143 U.S. solar companies has urged Congress to review recent federal permitting rules under the Department of the Interior that have affected approval timelines for solar energy firms projects, potentially influencing development and future capacity additions.
Industry Cites Delays, Capacity Risks Under Updated Review
In a letter to congressional leaders, the companies said federal actions implemented this year have led to extended review requirements for projects that need Department of the Interior, or DOI, approval. The rules apply to projects on federal lands, private lands with DOI involvement, and projects using DOI-related resources.
A July DOI memo directs that leases, rights-of-way, construction and operation plans, grants, consultations and biological opinions receive review by the Interior secretary’s office. Solar developers said the process now covers roughly half of all planned power capacity through 2030.
The Solar Energy Industries Association said more than 500 projects nationwide could face delays or cancellation, representing nearly 116 gigawatts of planned capacity. “Many solar and storage projects located partially or entirely on private property are now being entangled in a myriad of federal reviews,” the group said.
Federal Oversight Aims To Standardize Project Approvals
Federal officials have said enhanced oversight helps ensure consistent permitting across agencies and supports broader solar energy firms planning. Industry representatives said the expanded review process may increase costs and complicate project schedules at a time of rising electricity demand.
SEIA said extended timelines could affect property owners, investors and local communities planning to host projects. The group also said delays could influence electricity costs for households and businesses if new resources are slow to come online. Eighteen states have more than half of their planned electricity capacity subject to the updated procedures, including several with expected growth in solar energy firms-intensive sectors.
Paul Jennings, chief executive of SunGrid Renewables, said uncertainty around review schedules has placed some projects on hold. “We have investor commitments and community support, but we cannot move forward until we get clarity from DOI,” Jennings said.
Companies Seek Legislative Review of Permitting Steps
The 143 companies asked Congress to work with federal agencies to reassess the July memo and consider adjustments that could improve efficiency in the approval process. The letter describes the request as an effort to streamline procedures and provide clearer permitting pathways for future development.
Maria Lopez, policy director at CleanPower Strategies, said improved predictability would help developers meet demand projections. “The industry needs permitting timelines that allow projects to advance based on consistent criteria,” Lopez said.
Lawmakers have not announced whether they plan to take up the request.
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