Guide

Community Solar Explained

Community solar lets people share the output of a local array without rooftop panels. This guide explains how subscriptions work and who benefits, using Department of Energy data.

Not every household can host rooftop solar, so community solar spreads the benefits of a shared array across many subscribers. The Department of Energy reports that nearly half of households and businesses cannot host their own rooftop system. This guide explains how community solar works and where it is available.

What Community Solar Is

Community solar opens solar access beyond a single roof. The Department of Energy defines it as any solar project or purchasing program, within a geographic area, in which the benefits flow to multiple customers such as individuals, businesses, nonprofits, and other groups.

The model exists because rooftop solar is out of reach for many. The Department of Energy states that nearly 50 percent of households and businesses cannot host rooftop solar due to ownership, roof conditions, shading, or upfront costs. Community solar gives those customers a way to participate.

How Subscribers Benefit

Subscribers pay for a share of a shared array rather than owning panels. The Department of Energy explains that participants pay a monthly subscription fee for a share of the electricity generated by the solar array.

The savings show up on the utility bill. The Department of Energy states that the utility compensates the project operator for power produced, and subscribers receive a portion of the dollar value generated by their subscription as a credit applied to their electric bills, reducing their energy costs.

Where Community Solar Is Available

Availability has spread across most of the country. The Department of Energy reports that community solar projects exist in at least 44 states plus Washington, DC, and that 24 states have passed enabling legislation that encourages or mandates community solar development.

Many programs also target broader access. The Department of Energy notes that 19 states and DC have policies supporting low-income household participation, and that community solar can provide resilience during outages along with local job creation.