The rooftop solar revolution has transformed how millions of homeowners generate electricity, but what about the estimated 50-75% of Americans who can't install solar panels on their homes? This includes renters, residents of multi-unit buildings, homes with unsuitable roofs, and those who simply can't afford the upfront costs of a solar system. Community solar offers a solution by allowing multiple participants to share the benefits of a single solar array, expanding access to clean energy and its economic advantages.

What Is Community Solar?

Community solar (also called shared solar or solar gardens) refers to local solar facilities shared by multiple community subscribers who receive credit on their electricity bills for their share of the power produced. These programs work by allowing participants to purchase or lease a portion of a solar array, or subscribe to a share of the power it produces, without installing panels on their own property.

The U.S. Department of Energy defines community solar as:

"A solar-electric system that provides power and/or financial benefit to multiple community members. Community solar allows people to benefit from solar power even if they cannot or prefer not to install solar panels on their property."

How Community Solar Works

While specific models vary, most community solar programs follow a similar structure:

1. Project Development

A solar array is built in a suitable location within the community. This might be on a shared building, in an open field, or on otherwise underutilized land. The project might be developed by:

  • A utility company
  • A solar developer
  • A non-profit organization
  • A group of community members
  • A local government

2. Participant Enrollment

Community members can participate through various models:

  • Ownership Model: Participants purchase a specific number of panels or a portion of the system and own that share for the life of the project.
  • Subscription Model: Participants subscribe to a portion of the solar farm's output, typically paying a monthly fee that is less than the credit they receive on their utility bill.
  • Pay-As-You-Go Model: Similar to a subscription but without a long-term commitment, allowing participants to opt out with shorter notice periods.

3. Energy Production and Credits

The solar array generates electricity, which is fed into the grid. Depending on local regulations and program structure, participants receive benefits through:

  • Virtual Net Metering: Similar to traditional net metering, but credits are applied to participants' bills based on their share of the community system.
  • Bill Credits: The utility provides a credit on each participant's bill based on their share of the solar production.
  • Reduced Electricity Rates: Some programs provide a fixed discount on electricity rates rather than direct credits.

Benefits of Community Solar

Community solar offers numerous advantages over both traditional electricity and individual rooftop solar installations:

Expanded Access to Solar Energy

The most significant benefit of community solar is its accessibility. It opens solar participation to many who were previously excluded:

  • Renters: Who cannot install solar on property they don't own
  • Apartment/Condo Dwellers: Who don't have their own roof space
  • Homeowners with Unsuitable Roofs: Due to shading, orientation, structural issues, or historic designations
  • Low and Moderate-Income Households: Who may not have the upfront capital for a rooftop system or sufficient credit for solar loans

According to the National Renewable Energy Laboratory (NREL), only 22-27% of residential rooftop area is suitable for hosting PV systems due to structural, shading, or ownership issues. Community solar helps bridge this gap.

Economic Benefits

Community solar provides financial advantages to both participants and the broader community:

  • Electricity Bill Savings: Most participants save 5-15% on their electricity bills.
  • Lower Initial Costs: No need for individual system design, site assessment, or installation.
  • Economies of Scale: Larger systems typically have lower per-watt installation costs than residential systems.
  • Local Job Creation: Development, construction, and maintenance create jobs in the community.
  • Increased Property Tax Revenue: Solar installations can generate tax revenue for local governments.

A study by GTM Research found that community solar subscribers save an average of $300 per year on electricity costs, though savings vary significantly by location and program structure.

Environmental Benefits

Like all solar projects, community solar provides environmental advantages:

  • Reduction in greenhouse gas emissions
  • Decreased air pollution from fossil fuel generation
  • Reduced water consumption compared to conventional power plants
  • Optimal land use through strategic siting (often on marginal or dual-use land)

The average 1-megawatt community solar project prevents approximately 1,500 tons of carbon dioxide emissions annually, equivalent to taking about 320 cars off the road.

Community Resilience

Community solar can enhance local energy resilience, especially when combined with storage:

  • Distributed generation reduces strain on the grid during peak demand
  • Some projects include battery storage to provide backup power during outages
  • Local generation reduces transmission losses and infrastructure needs

Successful Community Solar Models

Several innovative approaches to community solar have emerged across different regions:

The Colorado Model

Colorado was an early pioneer in community solar with the passage of the Community Solar Gardens Act in 2010. The state's program requires utilities to purchase power from community solar projects and credit subscribers' utility bills. Key features include:

  • Projects limited to 5 MW in size
  • Requirement that at least 5% of each project be reserved for low-income participants
  • Subscribers must be located in the same county as the solar garden or an adjacent county

By 2021, Colorado had over 70 community solar projects totaling more than 100 MW of capacity, serving thousands of subscribers.

The Minnesota Model

Minnesota has one of the most successful community solar programs in the country, with a program structure that ensures fair compensation for the value of solar energy. Its community solar gardens program features:

  • No maximum program size cap, allowing for substantial growth
  • An "adder" rate for smaller projects and those with low-income subscribers
  • A value-of-solar tariff that accounts for the full benefits of distributed generation

As of 2023, Minnesota had over 800 MW of community solar capacity serving more than 25,000 subscribers, making it the leading state for community solar on a per-capita basis.

Low-Income Community Solar

Several programs focus specifically on expanding solar access to low and moderate-income (LMI) communities:

  • DC Solar for All: Washington DC's program aims to reduce energy bills for 100,000 LMI households by 50% through community solar access.
  • NYSERDA Solar for All: New York's program provides no-cost community solar subscriptions to low-income residents, with guaranteed savings.
  • Colorado Energy Office's Low-Income Community Solar Demonstration Project: Partners with utilities and developers to create dedicated low-income community solar projects.

These programs often combine direct bill assistance with job training opportunities and community involvement in project planning.

Community-Owned Models

While many community solar projects are developed by third-party companies, some are truly community-owned and operated:

  • University Park Community Solar LLC: One of the first community-owned solar projects in the U.S., created by 30 Maryland residents who formed an LLC to install a 22 kW system on a church roof.
  • Cooperative Energy Futures: A member-owned cooperative in Minnesota that develops community solar gardens with a focus on energy justice and local ownership.
  • Shiloh Temple Community Solar Garden: A 207 kW project on a North Minneapolis church, owned by the community and providing benefits to local residents.

These models prioritize local control and keeping financial benefits within the community.

Challenges and Solutions

Despite its promise, community solar faces several challenges to widespread adoption:

Policy and Regulatory Barriers

The primary obstacle to community solar growth is often the regulatory framework:

  • Many states lack enabling legislation for community solar programs
  • Virtual net metering policies are inconsistent across jurisdictions
  • Program caps limit growth in some states with established programs
  • Interconnection processes can be lengthy and complex

Solutions: Advocacy for community solar-enabling legislation, standardized interconnection procedures, and fair compensation mechanisms have proven effective in states like Illinois and New Jersey, which recently established or expanded their programs.

Project Financing

Community solar projects can face financing challenges:

  • Higher customer acquisition costs compared to utility-scale solar
  • Perceived risk of subscriber turnover
  • Complex subscription agreements and billing integration

Solutions: Innovations in financing include aggregated portfolios of projects to reduce risk, standardized subscription agreements, and credit enhancement mechanisms for low-income participants. Green banks in states like Connecticut and New York provide specialized financing products for community solar.

Land Use Considerations

Finding suitable locations for community solar can be challenging:

  • Competition for land in dense urban areas
  • Concerns about agricultural land conversion
  • Zoning restrictions in some communities

Solutions: Innovative siting approaches include:

  • Brownfield Redevelopment: Using former industrial sites or landfills
  • Agrivoltaics: Combining solar with compatible agricultural uses
  • Carport Solar: Building solar canopies over parking lots
  • Floating Solar: Installing panels on reservoirs, retention ponds, or other water bodies

Equity and Inclusion

Ensuring that community solar benefits reach all segments of the population remains a challenge:

  • Credit score requirements can exclude low-income participants
  • Long-term contracts may not be suitable for renters with shorter tenancies
  • Information and signup processes may not be accessible to all community members

Solutions: Leading programs address these barriers through:

  • Alternative credit assessment methods or guarantee programs
  • Flexible contract terms with easier transfer or cancellation options
  • Multilingual outreach and partnerships with trusted community organizations
  • Carve-outs or incentives for low-income participation

The Future of Community Solar

The community solar sector is poised for significant growth and innovation:

Market Expansion

According to the National Renewable Energy Laboratory, community solar could represent 32-49% of the distributed solar market by 2030. Wood Mackenzie and the Coalition for Community Solar Access project that U.S. community solar capacity will reach 4.5 GW by 2025, more than double the capacity installed by the end of 2020.

Integration with Storage and Smart Grid Technologies

Next-generation community solar projects will increasingly include:

  • Battery storage to enhance grid benefits and potentially provide backup power
  • Smart inverters to provide grid support services
  • Virtual power plant capabilities to aggregate distributed resources

These advancements will increase the value of community solar to both participants and the broader electricity system.

Innovative Business Models

New approaches to community solar are emerging:

  • Anchor-Tenant Models: Where a large institution (e.g., hospital, university) serves as the primary subscriber, with remaining capacity available to community members
  • Pay-As-You-Save: Utility-financed programs that recover costs through a charge on the bill that is less than the savings
  • Community Solar+: Bundling solar with additional services like broadband internet access or community resilience centers

How to Get Involved

If you're interested in community solar, here are ways to participate:

For Individuals

  • Find Local Projects: Check EnergySage's Community Solar Marketplace or SEIA's community solar website to find projects in your area.
  • Evaluate Offers: Compare terms, savings estimates, contract length, and early termination provisions.
  • Ask Questions: Understand who develops, owns, and operates the project, and how billing and credits work.
  • Advocate: If community solar isn't available in your area, contact local representatives to support enabling policies.

For Communities

  • Form a Cooperative: Consider establishing a community-owned cooperative to develop a project.
  • Partner with Developers: Local governments or community organizations can partner with experienced solar developers.
  • Identify Sites: Assess public buildings, brownfields, or other suitable locations for community solar development.
  • Secure Funding: Explore grants, green bank financing, or community investment models.

Conclusion

Community solar represents a crucial bridge between individual rooftop solar and utility-scale renewable energy, making clean energy access more equitable and inclusive. By allowing multiple participants to share in the benefits of a single solar installation, these projects are democratizing access to renewable energy and its economic advantages.

As policy frameworks evolve and innovative models emerge, community solar is poised to play an increasingly important role in our transition to a clean energy future. The model's emphasis on local participation and broadly shared benefits aligns with growing recognition that the energy transition must be just and inclusive to succeed.

Whether you're a renter looking to support clean energy, a homeowner with an unsuitable roof, or a community leader seeking to develop local renewable resources, community solar offers a pathway to participation in the clean energy economy. As these projects continue to multiply across the country, they're not just generating electricity—they're building more resilient, sustainable, and equitable communities.