What is Community Solar?
Community solar (also called "shared solar" or "solar gardens") lets you benefit from solar energy without installing panels on your property. You subscribe to a portion of a larger solar farm, and the energy it produces is credited to your electric bill.
Growing Fast
Community solar has grown 500%+ since 2020, now available in 40+ states. Over 5 million households are eligible but haven't subscribed yet—often because they don't know it exists. (Source: industry data and EnergySage analysis)
[Editor's Note, Jan 2026]:Updated with current pricing, policy changes, and incentive information for 2026.
Why Community Solar Exists
- Renters: Can't install panels on property they don't own
- Shaded roofs: Trees or obstructions block sun
- Poor roof condition: Roof needs replacement first
- HOA restrictions: Community rules prohibit panels
- Multi-family housing: Apartments, condos, townhomes
- No upfront cost: No purchase, no installation
How It Works
The Basic Model
- Solar farm built: Developer builds large solar installation
- You subscribe: Sign up for a portion of the farm's output
- Energy generated: Your share produces electricity
- Credits applied: Utility credits your bill for that energy
- You pay less: Discounted rate compared to regular electricity
Subscription Models
| Model | How It Works | Typical Terms |
|---|---|---|
| Percentage discount | Pay 10-15% less than utility rate | Month-to-month or annual |
| Fixed rate | Locked rate per kWh | 1-20 year terms |
| kWh subscription | Subscribe to specific output | Based on your usage |
Who Benefits Most?
Ideal Candidates
- Renters: Benefit from solar without owning property
- Apartment dwellers: No roof access needed
- Condo owners: No HOA approval required
- Heavily shaded properties: Roof doesn't matter
- Old or complex roofs: Skip the installation hassle
- People who plan to move: Subscriptions can often transfer
No Installation
Community solar requires zero changes to your home. No panels, no equipment, no roof work. You simply sign up and start saving. (Source: industry data and EnergySage analysis)
Expected Savings
Typical Discount
- Savings range: 5-15% off your electric bill
- Average savings: 10% is common
- Monthly impact: $10-30/month for typical household
- Annual savings: $100-300/year typical
Savings Example
| Monthly Bill | 10% Savings | Annual Savings |
|---|---|---|
| $100 | $10/month | $120/year |
| $150 | $15/month | $180/year |
| $200 | $20/month | $240/year |
Pros and Cons
Advantages
- No installation: Nothing on your roof or property
- No upfront cost: Subscribe and start saving
- Flexible: Can often cancel or transfer
- Available to renters: Works regardless of ownership
- No maintenance: Solar farm handles everything
- Guaranteed savings: Typically structured for net benefit
Disadvantages
- Lower savings: 10% vs 50-100% with rooftop solar
- No tax credit: You don't own the system
- No home value increase: Nothing on your property
- Contract terms: Some lock you in for years
- Limited availability: Not in all areas yet
- Waitlists: Popular programs fill up
Finding Community Solar
How to Find Programs
- EnergySage marketplace: Lists community solar options by zip code
- Utility website: Many utilities offer their own programs
- State energy office: Lists approved programs
- Community solar providers: Nexamp, Arcadia, Clearway, etc.
States with Strong Community Solar
- Best programs: New York, Massachusetts, Minnesota, Colorado, Illinois
- Growing programs: New Jersey, Maryland, Maine, California
- Emerging: Virginia, New Mexico, Oregon, Pennsylvania
Check Availability
Community solar availability varies by state, utility, and even zip code. Check EnergySage or your utility's website to see what's available where you live.
Community vs Rooftop Solar
| Factor | Community Solar | Rooftop Solar |
|---|---|---|
| Upfront cost | $0 | $15,000-35,000 |
| Bill savings | 5-15% | 50-100% |
| Tax credits | No | Yes (PPA/Lease) |
| Home value | No increase | +3-4% increase |
| For renters | Yes | No |
| Commitment | Flexible | 25+ years |
When to Choose Which
- Choose community solar if: Renting, shaded roof, plan to move soon, want simplicity
- Choose rooftop if: Own home, good roof, staying long-term, want maximum savings
The Bottom Line
Community solar is a great option if rooftop solar isn't feasible. You won't save as much as owning your own system, but 10% savings with zero installation and no upfront cost is a solid deal.
Who should consider it:
- Renters who want solar benefits
- Homeowners with shaded or unsuitable roofs
- Anyone who wants to support clean energy easily
- People who may move in the next few years
Who should skip it: Homeowners with good roofs who plan to stay—rooftop solar will save far more money over time.
Not Sure Which Solar Option Fits?
Our AI can help you evaluate whether community solar or rooftop solar makes more sense for your situation.
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