What Is Community Solar?

Community solar is making solar energy accessible to more people across the United States. While rooftop solar has become increasingly common, many households and businesses cannot install solar panels because they rent their property, have unsuitable roofs, or face financial or technical limitations. Community solar offers an alternative by allowing multiple participants to benefit from electricity generated by a shared solar project without installing panels on their own property.

As community solar programs continue to expand across many states, they are becoming an important part of the clean energy transition by increasing access to renewable energy while supporting local electricity generation. This article explains how community solar works, who can participate, how it differs from rooftop solar, and why it continues to grow across the United States.

This article is for educational purposes only and does not constitute financial, legal, tax, or investment advice. Community solar programs vary by state, utility, and project. Always consult your local utility or program administrator for information specific to your area.

What You'll Learn

In this article, we'll cover:

• What community solar is

• How community solar programs work

• Who can participate

• How community solar differs from rooftop solar

• Common misconceptions about community solar

• Why community solar has expanded across the United States

What Is Community Solar?

Community solar is a program that allows multiple households, businesses, nonprofits, or other organizations to receive benefits from a single off-site solar energy project. Instead of installing solar panels on their own roof, participants subscribe to or purchase a share of the electricity produced by a nearby solar facility. Depending on the program structure, participants typically receive credits on their electricity bills that reflect a portion of the energy generated by the shared project. Community solar projects are generally connected to the local electric grid and operate within a utility's service territory. The U.S. Department of Energy describes community solar as a model that expands access to solar energy for customers who cannot install rooftop systems themselves (https://www.energy.gov/eere/solar/community-solar-basics).

How Does Community Solar Work?

Although programs vary across utilities and states, most community solar projects follow a similar process:

1. A developer builds or operates a shared solar facility.

2. Homes, businesses, nonprofits, or public organizations enroll in the program.

3. The solar facility generates electricity and delivers it to the local electric grid.

4. The utility tracks each participant's allocated share of electricity generation.

5. Participants receive bill credits or other program benefits based on their share of the electricity produced, according to the program's rules.

Unlike rooftop solar, the electricity generated does not flow directly from the solar farm to a participant's home. Instead, the electricity enters the electric grid, while participants receive financial credits that correspond to their portion of the project's production. The U.S. Department of Energy explains this process through its Community Solar Basics guidance (https://www.energy.gov/eere/solar/community-solar-basics).

Who Can Participate?

Eligibility depends on state regulations, utility rules, and the specific program. In many community solar programs, participants may include:

• Homeowners

• Renters

• Small businesses

• Nonprofit organizations

• Schools

• Municipal governments

• Affordable housing providers

Many programs are designed specifically to expand access to households that may not otherwise benefit from rooftop solar. According to the U.S. Department of Energy's National Community Solar Partnership, community solar can help increase access for low- and moderate-income households while broadening participation in clean energy (https://www.energy.gov/communitysolar).

Community Solar vs. Rooftop Solar

Although both approaches generate electricity from sunlight, they differ in several important ways.

Both models contribute renewable electricity to the grid, but community solar expands access to customers who may not be able to install rooftop systems.

Why Has Community Solar Expanded?

Community solar has grown because it addresses barriers that prevent many people from installing rooftop solar. According to the National Renewable Energy Laboratory (NREL), a significant portion of U.S. households face challenges such as renting, roof shading, structural limitations, or insufficient roof space that make rooftop solar impractical (https://www.nrel.gov/state-local-tribal/community-solar.html).

Community solar programs help overcome many of these limitations by allowing participants to benefit from a shared project without owning the physical infrastructure.

Growth has also been supported by state legislation, utility programs, and federal initiatives designed to increase access to clean energy. Program availability, however, varies considerably by state, and not every utility offers community solar.

Common Misconceptions About Community Solar

"You need to own a home."

Not necessarily. Many community solar programs allow renters to participate, although eligibility requirements differ depending on the utility and state.

"Community solar means electricity comes directly from the solar farm to my home."

Not exactly. Electricity generated by the project is typically delivered to the electric grid. Participants generally receive bill credits based on their allocated share of the project's generation rather than receiving electricity through a dedicated physical connection.

"Community solar is available everywhere."

No. Community solar availability depends on state policies, utility participation, and local program development. Some states have well-established programs, while others have limited or no community solar offerings. The U.S. Department of Energy maintains resources describing where community solar programs exist and how they operate (https://www.energy.gov/communitysolar).

"All community solar programs work the same way."

No. Program structures vary. Subscription terms, eligibility requirements, bill credit calculations, transferability, and customer protections differ among states, utilities, and individual projects.

Why Community Solar Matters

Community solar helps broaden access to renewable energy by making participation possible for customers who may not be able to install rooftop systems. It also supports the development of local clean energy generation while helping diversify electricity resources connected to the grid.

As more states adopt community solar policies and utilities expand available programs, community solar is expected to remain an important part of the broader U.S. clean energy landscape. The exact benefits available to participants, however, depend on applicable state laws, utility tariffs, and individual program terms.

Final Thoughts

Community solar provides another pathway for individuals and organizations to participate in renewable energy without installing solar panels on their own property. By allowing multiple participants to share the output of a single solar project, these programs can expand access to clean electricity while supporting local energy generation.

Although community solar programs differ across the country, understanding how they work can help consumers better evaluate available options and understand the role shared solar projects play within the U.S. electric system.

Learn More

• U.S. Department of Energy – Community Solar Basics: https://www.energy.gov/eere/solar/community-solar-basics

• U.S. Department of Energy – National Community Solar Partnership: https://www.energy.gov/communitysolar

• National Renewable Energy Laboratory – Community Solar: https://www.nrel.gov/state-local-tribal/community-solar.html