Solr is an open-source search platform that can be integrated with Rails applications. It provides full-text search, hit highlighting, autocomplete, and faceted search capabilities. Some challenges of using Solr include handling spellchecking, stemming, synonyms, n-grams, and phrases across multiple languages. Based on experiences, Solr is very memory intensive and performs best with warm caches. Response times can vary significantly depending on the query complexity and whether the indexes are warm.