Short answer: community solar lets you subscribe to a share of an off-site solar farm and receive credits on your electric bill for the power your share produces. You don’t need a roof, and most programs have no upfront cost. About half of U.S. households and businesses can’t host rooftop solar, according to NREL analysis cited by the Department of Energy, which is exactly who community solar is for.
How it works
- A developer builds a solar array in your utility’s area.
- You subscribe to a portion of it, usually sized to part of your yearly use.
- The utility credits your bill for your share of the power produced.
- You pay the subscription, typically less than the value of the credits, so you save.
Subscription vs ownership
| Subscription (most common) | Ownership share | |
|---|---|---|
| Upfront cost | Usually none | Yes |
| Savings | A discount on the credit value; varies by program | Potentially higher over time |
| Commitment | Varies; look for easy exit terms | Long-term |
The DOE’s recommended best practice for low-income programs is at least 20% household savings with no exit, termination or sign-up fees. Market-rate discounts vary by state and project.
Where it’s available
At least one community solar project exists in 44 states and D.C., and 24 of those have laws that specifically enable it; states with these laws tend to have far more projects and subscribers (DOE). NREL’s community solar resources and your state energy office list programs near you.
Who it’s best for
- Renters and condo owners.
- Homeowners with shaded, small or aging roofs. See replace your roof before solar?
- People who don’t want to buy or finance equipment or may move soon.
What to check before you sign
- Savings rate: how much less you pay than the credit value, and whether it’s guaranteed.
- Price escalators: does the subscription price rise each year?
- Exit terms: can you cancel, and is there a fee? What if you move within the same utility area or out of it?
- Credit timing: credits can lag a month or two behind production.
- Billing: one combined bill, or a separate bill from the solar company?
- Who the developer is and how long they’ve operated projects.
Community vs rooftop solar
Rooftop solar you own usually saves more over 25 years, but needs a good roof, upfront money or financing, and you take on maintenance. Community solar saves less but asks almost nothing of you. Compare rooftop costs in how much solar panels cost and is solar still worth it.
FAQ
Does my power actually come from the solar farm? Electricity mixes on the grid. You’re paying for and getting credit for clean power fed into it.
What happens during an outage? Community solar doesn’t provide backup power; you lose power along with the grid.