Community solar is reshaping how households and businesses across the U.S. gain access to clean energy. Instead of requiring a homeowner to install solar panels on their own roof, a community solar project allows subscribers to receive the energy generated from a shared solar array and earn credits on their electricity bills. The Department of Energy defines community solar as any solar energy system where the power produced is shared among multiple participants—making renewable energy accessible for more people than ever before.

This guide explains how community solar works, why the benefits of community solar are increasingly important, and how shared solar programs are expanding access to clean energy regardless of physical attributes or ownership of a home.

What Is Community Solar?

At its core, community solar (also called shared solar) is a model for solar energy distribution that allows multiple subscribers to benefit from a single solar array. This means participants can access solar energy generation regardless of the physical attributes of their property.

The Department of Energy explains that community solar provides equal access to the economic and environmental benefits of solar energy generation, especially for residents who are unable to host rooftop solar panels.

Community solar is ideal for:

• Renters
• Homeowners who cannot install solar panels
• Households and businesses with shaded roofs
• People looking for energy savings without upfront installation costs

Because the electricity is generated off-site and delivered through the electric utility grid, the solar program allows broad participation.

Key Features of Community Solar

• Participants subscribe to a share of a regional solar farm.
• They receive credit on their electricity bills for their portion of the energy produced.
• Utility bill credits reduce overall energy and monthly electric costs.
• Community solar projects generate renewable energy without requiring installation at a home or business.

For a detailed explanation from the federal government, readers can explore the Department of Energy’s overview of community solar:
https://www.energy.gov/communitysolar

How Community Solar Works

Understanding how community solar works helps clarify why it is becoming a leading energy solution across the U.S.

A community solar project sends the solar power it produces to the grid. Subscribers who receive a portion of that electricity earn a bill credit directly on their monthly electricity bill. The amount of credit depends on the amount of energy their subscription generates.

The Subscription Model

Most programs operate with a flexible community solar subscription. Subscribers pay for a share of the solar energy and receive credit on their electricity bills based on their percentage of the energy generated.

A subscription typically includes:

• A defined share of the community solar system
• Monthly savings based on energy bills
• The ability to cancel or transfer subscriptions if moving

This system ensures energy without the financial or logistical barriers of rooftop solar.

Community Solar Provides Access for All

One of the biggest advantages is that community solar allows people to access the benefits of solar regardless of whether they own a home or have a suitable roof.
It also helps low-to-moderate income households reduce energy costs, supporting a more equitable energy market.

Benefits of Community Solar

The benefits of community solar extend far beyond simple bill savings. Because community solar projects generate electricity for multiple subscribers, they create opportunities for broader renewable energy adoption.

Economic Benefits

Many subscribers experience immediate reductions in their utility bills. The benefits of solar power often include:

• Lower monthly energy expenses
• Long-term savings on electric bill charges
• Stable rates compared to rising grid costs
• Increased energy supply reliability

Analysis by the National Renewable Energy Laboratory (NREL) shows that community solar can lower electricity expenses for participating customers while expanding overall energy capacity in local markets.
NREL community solar resources: https://www.nrel.gov/solar

Environmental Benefits

The environmental benefits of solar energy are well documented. Community solar reduces greenhouse gas emissions, supports distributed energy systems, and decreases the reliance on fossil fuels.

This results in:

• Lower carbon emissions
• Greater adoption of distributed solar
• Expanded solar industry job growth
• Increased solar capacity nationwide

Community solar contributes to clean energy goals across the U.S. by making solar energy more accessible.

Community Benefits and Local Solar Growth

Because projects are typically built within the region they serve, local solar development stimulates the local economy and keeps energy spending within the community.

Bullet-friendly highlights for quick readers:

• Supports local construction jobs
• Adds resiliency to the energy systems grid
• Encourages the development of at least one community solar project in underserved regions
• Helps communities meet renewable energy targets

Community Solar Projects and Solar Facilities

A community solar project consists of a centralized solar farm or community solar facilities that produce energy for multiple customers. These solar facilities can range from small distributed installations to large-scale solar energy generation sites.

How Energy Is Produced

The solar system used in community projects captures sunlight through a solar array. The panels convert sunlight into electricity, which feeds the local grid. The energy produced is measured and allocated to subscribers based on their share of the project.

Subscribers who receive a portion of this electricity then see the value reflected as a bill credit on their monthly statement.

Growth in the U.S.

Community solar is rapidly expanding in the U.S., especially in states that encourage:

• Community solar development
• Shared solar policies
• Incentives for solar installations
• Expansion of community solar capacity

These programs ensure that more residents can access the benefits of solar without the need to install solar on their homes.

Who Can Benefit from Community Solar?

Community solar offers advantages for various groups across the U.S. Because it removes major barriers, community solar provides options for those who previously could not participate in renewable energy programs.

Renters and Those Unable to Install Solar

For many renters, accessing solar was once impossible. But community solar allows renters to enjoy lower energy bills without property ownership.

Likewise, homeowners whose physical attributes or ownership situation prevents them from installing panels—such as shaded roofs or HOA restrictions—can still join.

Households and Businesses

Community solar is designed for both households and businesses, including:

• Small business owners seeking predictable energy costs
• Multi-family housing residents
• Homeowners looking to reduce their electricity bill
• Larger organizations with sustainability goals

In every case, subscribers benefit directly to a subscriber’s bill through monthly credits.

Low-to-Moderate Income Families

One of the major goals of the Department of Energy is to support equal access to the economic and environmental benefits of solar. Community programs are increasingly structured to help low-to-moderate income subscribers gain savings and participate in the clean energy transition.

Learn How Community Solar Expands Access

The Department of Energy continues to support the development of community solar as a strategic solution in the national energy market. Their initiatives help ensure the widespread adoption of shared solar program models and improve the ability of communities to benefit from renewable energy.

Readers can learn more about federal efforts at:
https://www.energy.gov/eere/solar

Utility

The role of the utility is central in how community solar operates. While subscribers receive the benefits of renewable energy, it is the electric utility that manages the delivery of electricity through the grid and applies the bill credit to a subscriber’s monthly statement. Because the power produced by a community solar project flows into the utility grid, customers do not need any physical connection to the solar farm itself.

How Utilities Support Shared Solar

Utilities help ensure:

• Accurate metering for community solar subscribers
• Correct allocation of bills for their share of the energy generated
• Reliable delivery of electricity to each home or business
• Processing and applying credits on the customer’s electricity bill

This system empowers solar access for renters, homeowners, and businesses, making renewable energy participation more widely achievable.

Clean Energy

Community solar significantly contributes to the transition toward clean energy in the U.S. By removing installation barriers and offering flexible participation options, community solar programs support widespread adoption of renewable energy.

Clean Energy Advantages of Community Solar

• Encourages development of local solar resources
• Supports state and federal climate goals
• Reduces dependence on fossil fuels
• Promotes distributed, resilient energy systems
• Expands access to solar for residents everywhere

These clean energy solutions provide long-term advantages for both individual subscribers and the broader environmental landscape.

Utility Bill

One of the most attractive features for many subscribers is the predictable reduction in their utility bill. As the solar project produces electricity, each subscriber earns a proportional bill credit.

How Credits Lower Your Utility Bill

Each month:

• The energy produced by the community solar array is measured
• The subscriber’s share of that energy is calculated
• Credits are applied directly to the customer's utility bill

Because community solar programs vary, some offer a guaranteed discount—such as 10% off the credit value—while others simply reduce your monthly energy cost based on real-time solar power generation.

This makes signing up for community solar a strategic move for customers seeking predictable, sustainable savings.

Energy Generated

The energy generated by a community solar facility depends on factors such as capacity, solar panel efficiency, weather patterns, and technology used. The solar array captures sunlight and converts it into usable electricity, which is fed into the utility grid.

How Energy Generated Is Assigned to Subscribers

Subscribers receive credit based on the:

• Output of the solar array
• Size of their subscription (their share of the solar)
• Total amount of energy generated in a given month

Because the energy generated is tracked digitally through the utility, this model works regardless of the physical attributes of a customer’s housing situation.

Energy Costs

Reducing energy costs is one of the primary motivations for joining a community solar program. With national energy prices fluctuating, community solar provides homeowners, renters, and businesses with a reliable way to save on their recurring bills.

Why Community Solar Reduces Energy Costs

Community solar:

• Lowers electric bill charges through monthly credits
• Provides affordable access to solar energy without installation fees
• Ensures predictable pricing compared to market-rate electricity
• Helps households and businesses offset higher seasonal energy supply charges
• Supports increased solar capacity, reducing strain on the grid

Ultimately, community solar offers a way to participate in the clean energy transition while cutting monthly expenses.

Community Solar Options and Flexibility

Because community solar programs vary from state to state, customers have several paths to participate. Each program aims to improve solar access across diverse housing and economic situations.

Types of Community Solar Options

• Subscription-based programs (most common)
• Ownership-based models where customers buy a portion of the system
• Utility-sponsored programs
• Third-party developer options

The most widespread and accessible model is subscription-based, which requires no upfront cost and works for customers who are unable to host panels on their own roofs.

Access to Solar for Everyone

Expanding access to solar energy is a key goal of both state and federal programs. Because participants do not need to purchase or install solar equipment, community solar opens the door for millions more to participate in renewable energy adoption.

Solar Provides Homeowners and Renters a Path to Savings

Even without installing rooftop panels, community solar provides homeowners and renters the opportunity to:

• Enjoy monthly bill savings
• Support the solar industry
• Contribute to renewable energy growth
• Reduce reliance on nonrenewable sources
• Increase participation in local sustainability initiatives

This inclusive design ensures that access to solar is no longer limited by property type or financial barriers.

Signing Up for Community Solar

The process of signing up for community solar is intentionally straightforward. Most providers aim to make enrollment as simple as subscribing to an online service.

Typical Sign-Up Steps

1. Select a local community solar provider
2. Choose a subscription size to match your energy bills
3. Link your account to your electric utility
4. Begin receiving credit on their electricity bills

Programs prioritize transparency so subscribers understand how their share of the community solar works and how monthly credits will appear on their utility statements.

The Role of Community Solar Subscribers

Community solar subscribers form the backbone of the shared solar model. Their participation drives investment, expansion, and continued development of community solar infrastructure.

Subscribers Who Receive Energy Benefits

Subscribers benefit from:

• Bills for their share of the solar energy being reduced
• Direct savings applied directly to a subscriber’s monthly electricity statement
• Participation in a clean energy program without installing equipment
• Opportunities to support distributed solar growth in their region

This encourages long-term stability for both the subscriber and the community solar project.

Expanding Access Through Federal Leadership

The Department of Energy and the National Renewable Energy Laboratory continue to support the refinancing, analysis, and growth of shared solar initiatives across the nation. Federal leadership in this area is instrumental to broader renewable energy access and long-term U.S. clean energy goals.

Why Federal Involvement Matters

• Encourages equitable participation
• Supports standardization across states
• Improves data on performance and savings
• Stimulates investment in new solar farms
• Enables consistent policy that supports expanding access

Federal programs help ensure that community solar continues to grow and serve millions across the country.

Community Solar as a Path Toward a Clean Energy Future

Community solar has become one of the most innovative and impactful energy solutions in the U.S. As the demand for renewable energy increases, community solar provides a practical way for households and businesses to participate—even if they cannot install solar panels themselves.

Because community solar allows flexible participation and provides meaningful economic and environmental benefits, it is positioned to play a major role in the future energy landscape. Whether you are a renter, a homeowner, or someone looking for affordable ways to reduce energy costs, community solar offers a reliable and accessible path forward.