Solid-state transformers (SSTs) have diverse designs and constructions that make them suitable for various industrial applications, including distributions systems. This new breed of transformers has been developed to support the typical functionalities of core-type distribution transformers, along with new functionalities, such as controlling power flows, integrating dc distribution systems, utilizing distributed generation and storage units, supporting load-side voltage/frequency control, and improving the power quality. As SSTs become candidates for distribution systems, their deployment can pose challenges for distribution systems. Such challenges include the cost, protection, size and weight, efficiency, and adequate grounding designs. This article discusses some of the challenges that face the deployment of SSTs in distribution systems. In addition, this article provides a comparison between core-type and SST transformers for applications in distribution systems. The comparison between the transformers is made in terms of their efficiency, cost, and weight. Finally, this article makes several recommendations for future works that can further facilitate the deployment of SSTs in distribution systems.