What Is Community Solar? (And How It Differs from Rooftop Solar)
Community solar (also called "shared solar" or "solar gardens") is a solar farm that multiple households subscribe to. Instead of installing panels on your roof, you subscribe to a portion of a local solar farm and receive credits on your electric bill.
How Community Solar Works (Step-by-Step)
- A developer builds a solar farm (typically 500 kW – 5 MW) in your utility's service area.
- You subscribe to a portion of the farm (e.g., enough to cover 90% of your electricity use).
- The solar farm produces electricity, which flows to the grid (not directly to your home).
- Your utility gives you bill credits for your share of the solar production (typically at 90–95% of the retail rate).
- You pay the community solar provider for your share (typically 85–95% of the original bill). Your net savings are 5–15%.
Community Solar vs Rooftop Solar: Side-by-Side
| Factor | Community Solar | Rooftop Solar |
|---|---|---|
| Upfront cost | $0 (no installation) | $0–$30,000 |
| Savings | 5–15% off bill | 50–100% off bill |
| Federal tax credit | No (developer claims it) | Yes (30% ITC) |
| Home value increase | No | Yes (~4%) |
| Maintenance | None (developer responsible) | Minimal (annual cleaning) |
| Roof required? | No | Yes (or ground mount) |
| Credit score required? | Usually no | Yes (650+ for loans) |
| Can move? | Yes (transferable) | More complex (loan assumption) |
Which States Have Community Solar? (2026 Map)
Community solar is available in 41 states as of 2026, but the availability and savings vary widely by state. States with the most active community solar programs:
| State | Program Status | Avg. Savings | Notable Programs |
|---|---|---|---|
| Minnesota | Very active | 10–15% | Xcel Energy community solar |
| Massachusetts | Very active | 10–15% | SMART + community solar |
| New York | Active | 10–15% | NY-Sun community solar |
| Colorado | Active | 5–10% | Xcel Energy CO program |
| Illinois | Growing | 5–10% | Illinois Solar for All |
| California | Emerging | 5–10% | Multi-family solar |
| Texas | Limited | 5–10% | Austin Energy, CPS Energy |
| Artificial (no program) | AL, TN, SC (some utilities) | N/A | No state mandate |
Is Community Solar Worth It? (Pros & Cons)
✅ Pros of Community Solar
- $0 upfront cost: No installation, no loan, no roof required.
- Good for renters: If you can't install rooftop solar, this is the next best option.
- No maintenance: The developer maintains the solar farm.
- Transferable: If you move within the same utility service area, you can transfer your subscription.
- No credit check: Most community solar providers don't require a credit check (unlike solar loans).
❌ Cons of Community Solar
- Lower savings: 5–15% savings vs 50–100% for rooftop solar.
- No tax credit: The developer claims the 30% ITC, not you.
- No home value increase: Since you don't own the system, it doesn't add to your home's resale value.
- Long-term contracts: Many subscriptions require a 10–20 year commitment (though most allow cancellation for a fee).
- Limited availability: Even in states with community solar, there may be a waitlist for projects in your utility area.
How to Find and Enroll in Community Solar (2026)
- Check if your state has community solar: Visit DSIRE and search for "community solar [your state]".
- Search for local projects: Use community solar marketplaces like SolarMap or EnergySage Community Solar.
- Compare offers: Look at the discount rate (5–15%), contract length, and cancellation terms.
- Enroll: Provide your utility account number and ID. The community solar provider coordinates with your utility to set up bill credits.
- Start saving: Within 1–3 billing cycles, you should see credits on your electric bill.
Frequently Asked Questions About Community Solar
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Calculate My Solar Savings →❓ Frequently Asked Questions
Community solar allows you to subscribe to a shared solar farm and receive credits on your electric bill. No roof required. Savings are typically 5–15% off your bill.
Community solar is available in 41 states (2026). States with the most active programs: MN, MA, NY, CO, IL. Check DSIRE or your utility website for local availability.
Typical savings are 5–15% off your electric bill. This is lower than rooftop solar (50–100% savings) but requires $0 upfront cost.
Yes! Community solar is the #1 solar option for renters and apartment dwellers. You don't need to own a home or have a roof.
No. You can cancel your community solar subscription (typically with 30–90 days notice) and install rooftop solar anytime.
No — legitimate community solar is a real program. However, be wary of door-to-door salespeople claiming 'free solar.' Always research the provider and read the contract before signing.