What Is Community Solar?
Community solar (also called shared solar or solar gardens) allows multiple subscribers to benefit from a single, offsite solar installation. Instead of putting panels on your roof, you subscribe to a portion of a larger solar farm. The electricity generated is fed into the grid, and you receive credits on your utility bill proportional to your share of the project's output.
Community solar is the fastest-growing segment of residential solar because it opens solar savings to the roughly 50% of American households that cannot install rooftop panels due to renting, unsuitable roofs, shading, HOA restrictions, or multi-unit housing.
How Community Solar Works
- Step 1: A developer builds a solar farm (typically 1–5 MW) within your utility's service territory
- Step 2: You subscribe to a portion of the farm's output (e.g., 5 kW of a 2 MW project)
- Step 3: The farm generates electricity and feeds it to the grid
- Step 4: Your utility applies credits to your bill based on your share's production
- Step 5: You pay the community solar provider a discounted rate (typically 5–15% below retail)
The net effect: you save 5–15% on your electricity bill with no installation, no upfront cost, and no long-term commitment (most subscriptions are month-to-month or have 12-month terms).
Community Solar Availability by State
| State | Program Status | Typical Savings |
|---|---|---|
| New York | Mature market, many providers | 10–15% |
| Massachusetts | Well-established | 10–20% |
| Minnesota | Pioneer state, strong program | 5–10% |
| Illinois | Growing rapidly | 10–15% |
| New Jersey | Expanding | 5–15% |
| Colorado | Active market | 5–10% |
| Maryland | Growing | 10–15% |
| California | New programs launching | 5–20% |
Community Solar vs. Rooftop Solar
| Factor | Community Solar | Rooftop Solar |
|---|---|---|
| Upfront cost | $0 | $14,000–$25,000 |
| Monthly savings | 5–15% | 50–100% |
| 25-year savings | $3,000–$8,000 | $30,000–$70,000 |
| Commitment | Month-to-month or 1 year | 25-year system life |
| Available to renters | Yes | No |
| Maintenance | None (provider handles) | Homeowner responsibility |
Who Benefits Most from Community Solar
- Renters who cannot install rooftop panels
- Condo and apartment owners without control over building roofs
- Homeowners with shaded or unsuitable roofs
- Those who want solar savings without a 25-year commitment
- Low-income households — many states mandate low-income access to community solar
What to Watch For
Not all community solar programs are equal. Before subscribing, verify: the guaranteed discount percentage, contract length and cancellation terms, whether credits appear on your utility bill or come as a separate check, and the provider's track record. Reputable providers include Arcadia, Nexamp, and Clearway Energy. Avoid programs requiring large upfront payments or long lock-in periods.
Getting Started
Search for community solar programs in your area by entering your zip code on provider websites. If you are a homeowner with a suitable roof, rooftop solar will deliver far greater lifetime savings — use our solar calculator to compare both options.