An In-Depth Guide to Community Solar
Solar energy is growing fast. But not everyone can put solar panels on their roof. That’s where community solar comes in. It gives people access to solar energy even if they don’t own a home or have a good rooftop. In this guide, you’ll learn what community solar means, how it works, and who can benefit from it.
What is Community Solar?
Community solar is a shared solar power system. One large solar farm produces electricity. Then many people can use part of that energy. You don’t need to install panels at home. You only need to subscribe or buy a share of the system.
How It Works
- A company or local utility builds a large solar farm.
- People sign up to use some of the electricity from that farm.
- The electricity goes into the local power grid.
- Subscribers get credits on their electricity bills based on how much energy their share produces.
You still get electricity from your utility company, but your bill goes down because of the credits.
Advantages of Community Solar
Community solar has many good points:
Lower Energy Bills
Many people save between 5% and 20% on their electricity bills. You pay a monthly fee for your share, but the credits you get are usually worth more. Over time, you spend less.
No Rooftop Needed
You don’t need to put anything on your roof. That helps if:
- You rent your home
- Your roof is too small or too shady
- You live in a condo or apartment
No Maintenance
You don’t have to clean panels or fix anything. The company that owns the solar farm takes care of all repairs.
Good for the Environment
Community solar uses clean energy from the sun. It helps reduce the use of coal, gas, or oil. This cuts air pollution and slows down climate change.
Flexible Contracts
Many community solar companies now offer short-term contracts. Some let you cancel with no fee. Others allow you to transfer your subscription to someone else if you move.
Disadvantages of Community Solar
Community solar is helpful, but not perfect. Here are some things to think about before signing up:
No Tax Credits
You usually don’t own the panels. So you won’t get federal or state solar tax benefits. Those are only for people who buy and install their own systems. Some ownership-based programs do allow tax savings, but these are less common.
Limited Access
Community solar is not in every state. Some areas do not allow shared solar systems. Others do not have enough projects yet.
Land Use Concerns
Solar farms need large, open areas. In some cases, trees are cut down to make space. This can hurt wildlife and natural habitats.
Market Trends of Community Solar
Community solar is growing fast in the U.S., with about 7.87 gigawatts (GW)installed as of June 2024, covering 44 states and D.C. Most of this capacity—over 75%—is located in just four states: Florida, New York, Massachusetts, and Minnesota. These states have passed strong laws and built programs that make it easier for residents to join, including low-income households.
By August 2024, 24 states and D.C. had laws supporting community solar. Among them, 20 states included specific rules to support low-income access. Some projects receive extra funding for serving low-income customers, while others require a share of subscriptions to be reserved for these groups. Many programs aim for at least 20% bill savings and follow clear consumer protection guidelines.
Community solar is often more affordable than regular electricity. The Department of Energy reports a median net present value (NPV) of +$0.27 per watt (W-AC) through mid-2024, showing long-term cost benefits for most subscribers. With more projects planned—many focused on underserved areas—the market is expected to keep expanding.
Who Benefits the Most from Community Solar
Not everyone needs the same type of solar power. Here are the groups who benefit the most from community solar:
- Renters. Renters usually cannot install rooftop solar. Community solar gives them a clean energy choice without needing to change the building.
- Apartment or Condo Owners. If you share a building with others, rooftop space may be limited. Community solar lets you join a project without needing to install anything at your location.
- People with Poor Roofs. If your roof is too shady, old, or faces the wrong direction, solar panels may not work well. Community solar skips that issue entirely.
- Low- to Moderate-Income Households. Buying solar panels costs a lot up front. Community solar subscriptions are much cheaper. Many states also offer special programs to help these families save money.
- Frequent Movers. If you change homes often, rooftop solar is hard to manage. Some community solar plans let you cancel early or transfer the contract when you move.
Can Community Solar Help Achieve Energy Independence?
No, community solar alone cannot achieve full energy independence. It helps reduce reliance on the grid, but by itself, it’s not enough to meet all energy needs. Here’s why:
Solar energy is not constant — it drops at night and during cloudy weather.
Without battery storage, extra power from sunny days cannot be saved for later.
High-energy demands—like air conditioning, electric vehicle charging, or running multiple appliances—often exceed what community solar can cover alone.
To move from partial independence to real, 24/7 control, communities and households also need:
Battery storage systems that can hold large amounts of solar energy
Smart energy control to manage usage and prioritize critical loads
Reliable backup sources in case solar input drops suddenly
That’s where a system like the EcoFlow OCEAN Pro comes in.
With up to 80kWh of storage, 24kW continuous output, and AI-driven power optimization, the OceanPro is designed to fill the gap that community solar cannot cover. It stores excess energy, powers high-demand devices, and keeps homes running even during outages.
FAQs
Q1. What is the difference between a subscription model and an ownership model in community solar?
In a subscription model, you pay a monthly fee to access solar power from a shared solar farm. You don’t own any part of the system. This is the most common type of community solar.
In an ownership model, you buy a part of the solar system itself. You may be eligible for tax credits and other incentives, but this option is less common and usually costs more upfront.
Q2. Can I still get federal or state incentives with community solar?
Most incentives apply only to people who own solar systems. If you are a subscriber, you usually do not get tax credits or rebates. Some ownership-based programs may offer incentives, but you must meet all local rules to qualify.
Q3. What if I move after joining a community solar program?
Some programs allow you to:
- Transfer your subscription to another person
- Move your subscription if you stay in the same utility area
- Cancel early without a fee
But not all programs are the same. Always check the contract before signing up.
Q4. Are there consumer protections in community solar programs?
Yes. In many states, community solar programs must follow rules to protect consumers. Good programs often include:
- Guaranteed savings, such as at least 20% off your electricity bill
- No sign-up or exit fees
- Plain language contracts in your main language
- Easy complaint processes
Check your state’s rules or ask the program provider for these details.
Q5. Can community solar support affordable housing or multifamily buildings?
Yes. Some community solar systems are built on or near apartment buildings or public housing sites. These can provide direct bill savings or other shared benefits to residents.