At first glance, community solar’s promise of savings with no upfront installation cost can sound “too good to be true.” We know that because we hear it at least once a week in the conversations we have with consumers looking for a break from rising electric bills.
But its helpful to know that community solar programs are designed to create shared value — not just for potential subscribers, but also for utilities, solar project owners, and the broader community.
In this guide, we’ll explore why these programs exist and how different groups benefit from them. With that knowledge, subscribers can see that its not just a program built around them benefiting, but their state as a whole.
The Role of State Renewable Energy Goals
Community solar programs are created through the adoption of state-level legislation, meaning they're not available everywhere.
Many states that adopt community solar also establish Renewable Portfolio Standards or Clean Energy Standards. These policies require utilities to increase the amount of renewable energy supplied to the electric grid over time.
Community solar can help states pursue these goals while also expanding access to renewable energy beyond traditional rooftop solar customers.
States with strong renewable energy targets are often more likely to develop community solar programs as part of their long-term energy strategy.
“No Roof Space? No Problem.”
Many homeowners, renters, businesses, and nonprofits want to benefit from solar energy but are unable to install solar panels because of cost, roof limitations, building ownership restrictions, shading, or property constraints.
Community solar helps fill this gap by allowing more electricity customers to participate in renewable energy projects without needing equipment physically installed onsite.
Some state programs are even designed to direct part of the savings toward low- and moderate-income households, helping expand access to lower electricity costs to those who may stand to benefit most from it.
Importantly, participants do not need to prove they are unable to install onsite solar in order to join a community solar project. Community solar is simply another option available to electricity customers who want predictable savings and access to renewable energy.
Why Would a Solar Farm “Give Away Money”?
Community solar developers build projects because they believe those projects will generate value over time. But every solar farm still needs customers who will ultimately purchase the electricity being generated.
Community solar programs allow project owners to distribute bill credits to subscribers within the same utility territory, then charge subscribers for those credits at a fixed discounted rate.
You might ask:
Common Question
“Why not just sell all the electricity directly to the utility and keep all the money?”
Community solar programs are intentionally structured to create mutual benefit. Solar project owners are able to sell electricity at favorable rates explicitly because they are sharing some of the value with consumers. If they opted not to share the value, they would no longer be eligible to be a community solar project.
Painting the Full Picture
Community solar programs are not designed solely to create savings for individual subscribers.
They are part of a broader system that helps states pursue clean energy goals, supports local economic development, expands renewable energy access, and creates savings opportunities for households and organizations that may not otherwise be able to participate in solar.
At their best, community solar programs create benefits that are shared across the entire community.