Not everyone can install solar panels on their roof. Maybe you rent your home, live in an apartment, have a shaded or north-facing roof, or simply cannot afford the upfront cost. Community solar solves this problem by letting you subscribe to a share of a larger solar farm in your area and receive credits on your electricity bill. In 2026, community solar programs are available in over 40 states, and the market is growing rapidly.
How Community Solar Works
Community solar (also called shared solar or solar gardens) follows a simple model:
- A solar farm is built -- A developer builds a large solar installation (typically 1-5 MW) in your utility service area
- You subscribe to a share -- You sign up for a portion of the farm's electricity output, based on your typical energy usage
- The farm generates electricity -- Your share of the solar farm's production generates credits that appear on your utility bill
- You save money -- The credits offset a portion of your electricity bill, typically saving you 5-15% compared to what you would normally pay
The key advantage is that no panels are installed on your property. The solar farm can be miles away, but as long as it is within your utility's service territory, you receive the benefits.
Community Solar vs. Rooftop Solar
| Factor | Rooftop Solar | Community Solar |
|---|---|---|
| Upfront Cost | $14,000 - $20,000 (net) | $0 (most programs) |
| Monthly Savings | 60-100% of bill | 5-15% of bill |
| 25-Year Savings | $25,000 - $60,000 | $3,000 - $10,000 |
| Federal Tax Credit | Yes (30%) | No (for subscribers) |
| Home Ownership Required | Yes | No |
| Good Roof Required | Yes | No |
| Contract Length | N/A (you own) | 1-25 years |
| Portability | Stays with home | Can transfer when you move (within service area) |
| Maintenance | Your responsibility | None (handled by developer) |
Rooftop solar provides much greater savings for homeowners who qualify, but community solar makes solar accessible to renters, apartment dwellers, and those with unsuitable roofs.
Who Should Consider Community Solar?
Community solar is ideal for:
- Renters -- You do not need to own your home or have landlord permission
- Apartment and condo dwellers -- No roof access needed
- Homeowners with shaded roofs -- If trees or buildings block your sun, community solar is the alternative
- Homeowners with old or small roofs -- If your roof cannot support panels or does not have enough space
- Anyone who wants to avoid upfront costs -- Most community solar programs have zero enrollment fees
- Environmentally conscious consumers -- Support solar energy even if you cannot install panels
How Much Can You Save?
Community solar savings are more modest than rooftop solar, but they are essentially risk-free. Typical savings range from 5% to 15% off your electricity bill, depending on the program and your state. Here are examples:
| Monthly Bill | 5% Savings | 10% Savings | 15% Savings |
|---|---|---|---|
| $100 | $5/mo ($60/yr) | $10/mo ($120/yr) | $15/mo ($180/yr) |
| $150 | $7.50/mo ($90/yr) | $15/mo ($180/yr) | $22.50/mo ($270/yr) |
| $200 | $10/mo ($120/yr) | $20/mo ($240/yr) | $30/mo ($360/yr) |
| $300 | $15/mo ($180/yr) | $30/mo ($360/yr) | $45/mo ($540/yr) |
While these savings are not as dramatic as rooftop solar, they come with zero upfront cost, zero maintenance, and zero risk. It is essentially free money for signing up.
States with the Best Community Solar Programs
Community solar availability varies by state. The most established markets include:
- New York -- The largest community solar market in the US with hundreds of projects. Residents of New York City and upstate areas have extensive options.
- Minnesota -- A pioneer in community solar with a well-established program through Xcel Energy. Minneapolis residents have many options.
- Massachusetts -- Strong community solar program with SMART incentives. Available throughout the state including Boston.
- Illinois -- Growing market thanks to the Illinois Shines program. Available in Chicago and surrounding areas.
- Colorado -- One of the first states to enable community solar. Active programs in Denver and Xcel Energy territory.
- New Jersey -- Rapidly growing community solar pilot program with strong subscriber protections.
- Maryland -- Active community solar market with projects across the state including Baltimore.
- California -- Multiple community solar programs available through utilities and third parties.
How to Sign Up for Community Solar
- Check availability: Search for community solar programs in your ZIP code. Companies like Arcadia, Nexamp, and Clearway Energy operate programs in many states.
- Compare programs: Look at the discount rate (percentage off your bill), contract length, and any cancellation fees.
- Review the contract: Read the terms carefully. Good programs have no upfront fees, no cancellation fees, and clear savings guarantees.
- Sign up: Enrollment is usually done online and takes 5-10 minutes. You will provide your utility account number so credits can be applied to your bill.
- Start saving: Credits typically start appearing on your bill within 1-3 billing cycles after enrollment.
Red Flags to Watch For
While most community solar programs are legitimate, watch out for:
- Upfront fees: Legitimate programs typically require zero upfront payment. If asked for money upfront, be cautious.
- Long lock-in periods with penalties: Avoid contracts with hefty cancellation fees, especially if the contract is longer than 1-2 years.
- Savings guarantees that seem too good: If a program promises 30%+ savings, verify the claim. Most legitimate programs offer 5-15%.
- Pressure sales tactics: Legitimate community solar companies do not use high-pressure door-to-door sales.
Community Solar for Businesses
Community solar is not just for residential customers. Small businesses, nonprofits, churches, and schools can also subscribe. For businesses with large electricity bills, even a 10% discount can mean significant annual savings. Many community solar programs prioritize low-income subscribers and offer enhanced discounts for qualifying households.
Bottom Line
Community solar is the easiest way to benefit from solar energy if rooftop panels are not an option. With zero upfront cost, zero maintenance, and guaranteed savings of 5-15% on your electricity bill, there is little reason not to sign up if a program is available in your area. For homeowners who can install rooftop panels, that remains the better financial choice -- check our city cost pages for specific pricing in your area. But for renters, apartment dwellers, and anyone with an unsuitable roof, community solar is a smart and accessible alternative.