Community solar is a system that allows consumers to receive credit on their electricity bills for the power produced from their portion of solar panels, offsetting their electricity costs. Joining a community solar program allows you to enjoy the benefits of solar energy without having to install solar panels on your property.
There are two primary ways to participate in a community solar initiative. The first is through a subscription model where participants pay a monthly fee and receive credits based on the energy produced by your share of the solar farm. The second approach, often used by businesses, involves an upfront investment to purchase a share of the solar installation.
A main benefit of community solar is receiving utility credits on your monthly bill. This is based on the amount of energy generated from a participant’s share of the solar panels and allows renewable energy to be more affordable and accessible. According to the Solar Energy Industries Association, there are 41 states, plus D.C. with at least one community solar project in the state, with 8.8 gigawatts of community solar installed in the US in Q1 2025.
Benefits of Community Solar
Community solar projects offer a wide range of benefits, making solar energy more accessible and providing significant economic, environmental and social advantages.
Community solar projects are accessible to all types of renters, homeowners and building owners since you don’t have to install solar panels on your property to participate. This makes the program more inclusive and allows for many people to benefit from solar energy.
Arguably the most rewarding benefit of community solar projects is the reduction in electricity bill costs. When a participant subscribes to a solar program, they receive a credit on their monthly bill based on the amount of solar energy produced. Community solar participants save about 5-20% on electricity costs throughout the year depending on what state they reside in.
Promoting renewable energy and community engagement are also benefits of participating in community solar projects. By increasing the adoption of solar energy to those who cannot install solar panels on their property, this encourages clean energy usage. Furthermore, community solar projects involve local stakeholders in the planning and decision-making processes, creating a sense of ownership and pride in the project. Local residents can participate in meetings and discussions about the development of a community solar project, which builds community ties.
This is an example of what your monthly bill could look like with Community Solar credits applied.
Challenges to Community Solar
Community solar projects are operated by the states, meaning there are different rules regarding interconnection, net metering and incentives, which can create uncertainty and increase the complexity of developing community solar projects.
Furthermore, high initial costs can be a barrier to establishing a community solar initiative. The project needs to secure financing for purchasing and installing solar panels, inverters and other necessary equipment. However, this can be done by leveraging state and federal incentives and through public-private partnerships.
The Bottom Line
In conclusion, community solar projects allow more people to access renewable energy sources for their buildings while saving money on their monthly utility bills. The community solar market continues to grow, offering more people access to affordable, clean energy.
Interested in joining a community solar project but don't know where to start? We can help you get set up! Learn more here.