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title: What Is Community Solar? description: How community solar works, who it's for, and how renters and apartment dwellers can benefit from solar without installing panels. summary: How community solar works, who it's for, and how renters and apartment dwellers can benefit from solar without installing panels. category: solar difficulty: Intro updated: 2026-02-09 tags: ["community solar", "solar", "renters", "shared solar", "programs"] relatedTools: ["/tools/solar-roi", "/tools/bill-decoder"] faqs:

• question: What is community solar? answer: Community solar is a shared solar installation — typically a large ground-mounted array or rooftop system — that multiple customers subscribe to. Subscribers receive credits on their electricity bill proportional to their share of the project's output, without installing any panels on their own property.
• question: How much does community solar cost? answer: Most community solar programs have no upfront cost. You subscribe and pay a discounted rate for the solar electricity allocated to your share. The discount is typically 5-20% off your utility rate. Some programs charge a small monthly fee, while others simply bill you at the reduced solar rate.
• question: Can renters sign up for community solar? answer: "Yes — that's one of community solar's biggest benefits. You don't need to own property, have a suitable roof, or install anything. As long as you have a utility account in the project's service area, you can typically subscribe. This makes solar accessible to renters, apartment dwellers, and condo owners."
• question: How do community solar credits work? answer: "Your share of the solar farm's production generates bill credits each month. For example, if your share produces 500 kWh in July and your utility rate is 16¢/kWh, you'd receive an $80 credit on your bill. Most programs use virtual net metering — the credits appear automatically."
• question: Can I cancel a community solar subscription? answer: Cancellation terms vary by program. Many allow cancellation with 30-90 days notice. Some have minimum commitment periods (6-12 months). Avoid programs with long-term contracts (5+ years) or early termination fees. The best programs offer month-to-month flexibility.

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What Is Community Solar?

An estimated 50% of Americans can't install solar panels on their own roof — because they rent, live in apartments, have shaded roofs, or can't afford the upfront cost. Community solar solves this.

How It Works

Instead of panels on your roof, a large solar array is built in your area — often on open land, commercial rooftops, or parking canopies. You subscribe to a share of that project:

1. A solar farm is built in your utility's service area
2. You subscribe to a portion of the project (e.g., 5 kW out of a 2 MW array)
3. The farm generates electricity and feeds it into the grid
4. Your share of production appears as a credit on your utility bill
5. You save money because the solar credit is cheaper than what you'd normally pay

You never physically receive the electricity — it's a billing arrangement. Your lights still turn on the same way. Your bill just has a new line item crediting you for your solar share.

Who Benefits Most

Community solar is ideal for:

• Renters — no property needed, no installation, no landlord permission
• Apartment and condo dwellers — shared buildings can't support individual systems
• Homeowners with shaded or unsuitable roofs — old roof, north-facing, too small, HOA restrictions
• People who don't want panels on their roof — aesthetics, maintenance concerns
• Those without upfront capital — most programs require zero investment

The Economics

How Savings Work

Most community solar programs charge you a discounted rate for the solar electricity:

| Component | Cost | |-----------|------| | Your utility rate | 16¢/kWh | | Community solar rate | 13¢/kWh (typical 15-20% discount) | | Your savings | 3¢/kWh |

If your share produces 600 kWh/month, that's $18/month in savings — or about $216/year with zero investment.

What You Pay

Program structures vary:

• Subscription fee: Pay a monthly rate for your share of production (most common)
• Bill credit model: Receive credits on your utility bill, pay the solar provider a discounted amount
• Ownership share: Purchase a portion of the project upfront (less common, higher returns)

Typical Savings

| Scenario | Annual Savings | |----------|---------------| | Small subscription (4 kW) | $100–$200/year | | Medium subscription (8 kW) | $200–$400/year | | Large subscription (full offset) | $400–$800/year |

Where Community Solar Is Available

Community solar has grown rapidly. As of 2026, it's available in 22+ states and D.C., with the most developed markets in:

• New York — largest community solar market in the US
• Minnesota — pioneered the community solar model
• Massachusetts — mature market with strong incentives
• Illinois — rapidly expanding under the Climate & Equitable Jobs Act
• Maine, Colorado, New Jersey, Maryland — growing programs

Several other states have enabling legislation but are still building out projects.

How to Find a Program

1. Check EnergySage.com — the largest community solar marketplace
2. Search your utility's website for "community solar" or "shared solar"
3. Look for local aggregators — companies like Arcadia, Nexamp, and Clearway specialize in community solar
4. Ask your state energy office — many maintain lists of approved programs

What to Look For

Green flags:

• No upfront cost or minimal enrollment fee
• Guaranteed discount off your utility rate (5–20%)
• Short or no commitment period
• Clear cancellation policy (30–90 days notice)
• Transparent billing and production reporting

Red flags:

• Long-term contracts (5+ years) with early termination fees
• Savings guarantees that sound too good to be true (50%+ off)
• Upfront purchase requirements without clear return projections
• Companies that aren't in your utility's approved program list

Community Solar vs Rooftop Solar

| Factor | Community Solar | Rooftop Solar | |--------|----------------|---------------| | Upfront cost | $0 typical | $15,000–$30,000 | | Savings per year | $100–$800 | $1,200–$3,000+ | | Ownership | No (subscription) | Yes | | Tax credit | No (provider claims) | Yes (30% ITC) | | Maintenance | None (provider handles) | Minimal (your responsibility) | | Home value boost | No | Yes (~4%) | | Renter-friendly | ✅ Yes | ❌ No | | Moving | Easy (cancel and resubscribe) | Stays with house |

For homeowners who can install rooftop solar, rooftop typically offers 3–5x more savings over 25 years. For everyone else, community solar is the best — and often only — way to benefit from solar energy.