Community Solar: Go Solar Without Owning Panels

You want to go solar, but you rent your home. Or maybe you own a condo. Or your roof faces the wrong direction, sits under tree cover, or just cannot handle the weight of panels. Whatever the reason, nearly half of all U.S. households cannot install rooftop solar, according to the National Renewable Energy Laboratory. For years, that meant solar simply was not an option for millions of Americans.

Community solar changes that. Also called shared solar, this model lets you subscribe to a portion of a solar farm built somewhere in your area and receive credits on your electric bill for the energy your share produces. You never install a single panel, never climb on your roof, and never sign up for tens of thousands of dollars in equipment. If you have an electric bill, you can likely participate.

With community solar surpassing 10 gigawatts of installed capacity in the United States at the end of 2025, this is no longer a niche idea. It is a proven, growing way for everyday consumers to save money and support clean energy. Here is everything you need to know about how community solar works, what it costs, and how to sign up.

What Is Community Solar?

The U.S. Department of Energy defines community solar as any solar project or purchasing program within a geographic area in which the benefits flow to multiple customers. Those customers can be individuals, businesses, nonprofits, schools, or local governments.

In practice, here is what that looks like. A solar developer builds a solar array, often called a solar farm or solar garden, somewhere in your utility's service territory. That array connects to the local power grid and generates electricity just like rooftop panels would. Instead of one homeowner benefiting from all that power, dozens or even hundreds of subscribers each claim a share of the energy produced. Your share shows up as a credit on your monthly electric bill, reducing what you owe your utility.

Think of it like a community garden, but for electricity. You do not need your own yard to grow tomatoes if you can rent a plot at a shared garden down the street. Community solar works the same way. You do not need your own roof to benefit from solar power if you can subscribe to a share of a nearby solar farm.

For background on how solar energy generation works at a fundamental level, see our guide on how renewable energy works and why it matters.

How Does Community Solar Work?

The mechanics are straightforward, even though the billing can feel unfamiliar at first. Here is a step-by-step breakdown of what happens when you subscribe.

First, a solar developer builds and connects a solar array to the utility grid in your area. The developer then sells subscriptions to local residents and businesses, with each subscriber claiming a portion of the array's output. Once subscribed, the solar farm generates electricity and feeds it into the grid. Your utility tracks how much energy your share of the farm produces each month. The utility then applies credits to your electric bill based on that production. You pay the community solar provider a subscription fee that is lower than the value of your credits, and that difference is your savings.

Most community solar programs use what is called virtual net metering. You are not physically receiving electrons from the solar farm. Instead, the energy goes into the shared grid, and your account gets credited for your portion of what was generated. The credits offset the electricity you pull from the grid at home, lowering your bill.

The billing typically works as a two-bill system. You still receive your regular utility bill, but it now reflects credits from your solar share, reducing the amount owed. Separately, you receive a bill from your community solar provider for your subscription. Because the subscription costs less than the credits you receive, you come out ahead each month.

Who Is Community Solar For?

Community solar was designed to make solar accessible to people who cannot go the traditional rooftop route. That includes several large groups of Americans.

Renters are perhaps the most obvious beneficiaries. If you do not own your roof, you cannot install panels on it. Community solar lets renters access solar savings with no modifications to their living space and no landlord approval required. If you move to a new apartment within the same utility service area, you can often keep your subscription.

Condo and townhouse owners face similar challenges. Even if you own your unit, shared roofs and homeowner association rules can make rooftop solar impractical or impossible. Community solar sidesteps those barriers entirely.

Homeowners with unsuitable roofs make up another significant segment. Your roof might face north, sit in heavy shade from mature trees, need structural repairs, or simply be too small to accommodate enough panels to make the investment worthwhile. Rather than spending thousands on tree removal or roof reinforcement before even buying panels, community solar offers a simpler path.

Budget-conscious households also benefit. Rooftop solar typically costs $26,000 to $34,000 before incentives, and with the federal residential tax credit having expired at the end of 2025, the upfront investment is steeper than ever. Community solar requires no upfront payment. For more on the current costs of going solar with your own panels, see our complete breakdown of solar panel installation costs.

Anyone who wants simplicity might prefer community solar even if rooftop panels are an option. There is no installation process, no permits, no equipment maintenance, and no worrying about inverter warranties or panel degradation. You sign up, you save, and someone else handles the rest.

How Much Can You Save?

Community solar subscribers typically save between 5 and 20 percent on their annual electricity costs, with 10 to 15 percent being the most common range. The exact savings depend on your location, your utility rates, and the specific terms of your subscription.

To put that in dollar terms, consider a household with a $150 monthly electric bill. At a 10 percent savings rate, that is $15 per month or $180 per year. At 15 percent, it climbs to $22.50 per month or $270 per year. Those numbers may not sound dramatic, but remember that this requires zero upfront investment and zero effort on your part beyond signing up.

Some providers advertise specific discount rates. Nexamp and Clearway, for example, typically offer credits at about 20 percent below the standard utility supply rate. Solar Landscape subscribers report savings of around 15 percent. IGS Energy guarantees up to 10 percent savings for Maryland customers. Low- and moderate-income programs in states like New Jersey and Colorado mandate even steeper discounts, often guaranteeing at least 15 to 25 percent off for qualifying households.

The savings are modest compared to owning a rooftop system, which can eliminate your electric bill entirely over time. But community solar delivers those savings immediately, with no debt, no equipment, and no long-term financial commitment to worry about. For many households, the simplicity and accessibility more than make up for the smaller percentage.

Three main pricing models exist in the community solar market. The most common is a fixed discount on bill credits, where you pay a set percentage below the value of the electricity your share generates, typically around 10 percent. Some programs offer a fixed discount on electricity rates, locking you into a per-kilowatt-hour price that is lower than your utility charges. A less common option is direct ownership, where you purchase panels in the community array outright for higher upfront costs but potentially greater long-term returns.

How to Sign Up for Community Solar

Getting started with community solar is simpler than most people expect. The entire process can take as little as a few minutes online.

Step 1: Check availability in your area. Community solar projects exist in 44 states plus the District of Columbia, but availability varies widely by location. The easiest way to check is through a community solar marketplace like EnergySage where you can search by ZIP code to see available projects near you.

Step 2: Compare offers. If multiple projects are available in your area, compare the discount rates, contract terms, and cancellation policies. Look for programs that offer a clear percentage discount (10 percent or more), have no sign-up or cancellation fees, and use plain-language contracts. Marketplaces make side-by-side comparison easy.

Step 3: Review the contract carefully. Before signing, understand the contract length (which can range from one year to 25 years), whether the rate is fixed or variable, what happens if you move, and whether there are any exit fees. The Department of Energy recommends looking for programs that guarantee a minimum savings level and have no hidden charges.

Step 4: Sign up and share your utility information. Once you have chosen a project, you will provide your utility account number so the provider can coordinate bill credits with your utility. This is standard and necessary for the credits to appear on your bill. Arcadia advertises that their sign-up process takes just two minutes.

Step 5: Start saving. After enrollment, it typically takes one to two billing cycles for credits to begin appearing on your electric bill. From that point forward, your savings happen automatically each month.

You can also go directly to individual providers. Nexamp operates in multiple states and offers a straightforward subscription model. Clearway serves subscribers in Massachusetts, Minnesota, New York, and Illinois. Common Energy and Perch Energy are additional options worth exploring.

Which States Have Community Solar Programs?

Community solar is available in most of the country, but the depth and maturity of programs varies significantly from state to state.

The strongest markets are concentrated in a handful of states. New York leads the nation, accounting for 43 percent of all community solar installations in 2025. Massachusetts and Minnesota are other long-established leaders with robust programs and significant installed capacity. Florida has also emerged as a major market. Together, these four states represent over three quarters of all community solar capacity in the country.

Twenty-four states have passed formal enabling legislation that specifically encourages or mandates community solar. These include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Massachusetts, Maryland, Maine, Minnesota, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, New York, Oregon, Rhode Island, South Carolina, Virginia, Vermont, and Washington, along with the District of Columbia.

Several states made major moves in 2025 and 2026. New Jersey approved a massive 3-gigawatt expansion of its Community Solar Energy Program, the largest capacity allocation in the state's history, with enough clean energy to serve approximately 450,000 subscribers. Colorado's Community Solar Modernization Act took effect in 2026, increasing the maximum size of community solar gardens to 5 megawatts and requiring that at least 51 percent of capacity serve low- and moderate-income households with a minimum 25 percent bill discount. Minnesota's low-income community solar program has approved 179 megawatts across 133 individual solar gardens. New Mexico launched its first community solar program in September 2025 after passing enabling legislation in 2021.

Illinois has emerged as a fast-growing market, representing 24 percent of national installations in 2025, while Maryland set a new annual installation record at 76 megawatts. Virginia, Delaware, and New Mexico are considered emerging markets expected to drive growth in 2026 and beyond.

If your state is not on the list or has limited options, that does not necessarily mean you are out of luck. New programs are launching regularly, and some utility companies offer their own community solar programs even without state legislation. Check with your local utility or search the Database of State Incentives for Renewables & Efficiency (DSIRE) for current programs in your area.

Community Solar vs. Rooftop Solar

If you have the option to install panels on your own roof, you may be wondering how community solar compares. Both are legitimate ways to go solar, but they serve different needs and offer different trade-offs.

Upfront costs are the most obvious difference. Rooftop solar requires a significant investment, typically $26,000 to $34,000 for a standard residential system in 2026, while community solar requires no upfront payment at all. If you are comparing financing options and want to understand total costs for a rooftop system, our guide to solar panel costs breaks down the numbers in detail.

Total savings tilt heavily toward rooftop ownership over the long run. A rooftop system can eliminate your electric bill entirely and pays for itself in 8 to 12 years, after which you enjoy decades of essentially free electricity. Community solar saves 5 to 20 percent on your bill indefinitely but never eliminates it. Over 25 years, a rooftop system owner will save far more in total dollars.

Maintenance and hassle favor community solar. The solar provider handles all equipment maintenance, monitoring, and repairs. With rooftop solar, while maintenance needs are minimal, you are still responsible for keeping panels clean, monitoring performance, and dealing with any inverter or equipment issues over the system's lifetime.

Property value is another consideration. Rooftop solar increases your home's resale value, often by the equivalent of the system's remaining value. Community solar has no impact on property value since you do not own any equipment.

Flexibility is mixed. Community solar subscriptions can often transfer if you move within the same utility territory, but you lose the subscription if you move outside that area. Rooftop solar stays with the house, benefiting the next owner but requiring you to start over at a new property. If you are someone who moves frequently, community solar may actually be more convenient.

Tax benefits currently favor neither option for most consumers. The federal residential clean energy credit expired at the end of 2025 for homeowner-owned systems. However, third-party ownership arrangements like solar leases and power purchase agreements still qualify for the Section 48E credit through 2027, which providers pass along as lower rates. Community solar subscribers do not directly access tax credits, but the project developers do, which helps keep subscription rates competitive. For the latest on solar incentives, see our buyer's guide to choosing solar panels.

The bottom line: if you own your home, have a suitable roof, and can afford the upfront cost or financing, rooftop solar will deliver greater lifetime savings. If any of those conditions do not apply, community solar is an excellent way to start saving immediately with zero risk and zero commitment.

Risks and Downsides to Know

Community solar is a low-risk way to save on electricity, but it is not without potential drawbacks. Here is what to watch for.

Modest savings compared to rooftop solar. While saving 5 to 20 percent is better than saving nothing, it pales in comparison to the 50 to 100 percent bill reduction that rooftop solar can deliver. If maximizing lifetime savings is your top priority and you have the option, rooftop panels will serve you better.

Contract terms vary widely. Some community solar programs offer month-to-month flexibility while others lock you into contracts lasting 20 years or more. Watch for variable pricing that could reduce your savings over time, exit fees that penalize early cancellation, and automatic renewal clauses. Always read the full contract before signing.

Geographic limitations. You must live within the service territory of the utility that serves the community solar project. If you move to a different utility area, you will likely need to cancel your subscription and find a new one. In rural areas or states without enabling legislation, options may be limited or nonexistent.

No increase in property value. Unlike rooftop solar, a community solar subscription does not add value to your home. You are paying for a service, not investing in an asset.

Seasonal variation in production. Solar farms produce significantly more electricity in summer than winter. While most programs roll unused credits forward from high-production months to offset leaner winter months, your monthly savings will fluctuate throughout the year.

Provider risk. If your community solar company goes out of business, the solar project itself typically continues operating under new management, but there could be a disruption in service or changes to your contract terms. Choosing established providers with a track record helps mitigate this risk.

Waitlists in popular areas. In states with high demand and limited supply, you may end up on a waitlist. New York and Massachusetts in particular have seen strong demand that sometimes outpaces the availability of new subscriptions.

The Growth of Community Solar

Community solar has grown substantially over the past decade, though the trajectory has not been entirely smooth. The industry crossed a major milestone in the fourth quarter of 2025, surpassing 10 gigawatts of cumulative installed capacity across the country. To put that in perspective, 10 gigawatts is enough to power roughly 1.8 million homes.

However, new installations dipped in 2025, with 1,435 megawatts added nationally, a 25 percent decline from the prior year. That drop was concentrated in specific states: Maine saw an 87 percent contraction, and New York's growth slowed after years of leading the market. Other states picked up some of the slack, with New Jersey installations growing 31 percent and Maryland setting a new annual record.

Looking ahead to 2026, analysts expect a 12 percent rebound in installations, driven by continued build-out in established markets and the entry of emerging states like New Mexico, Virginia, and Delaware. The longer-term outlook is less certain, with some projections showing a gradual contraction through 2030 as safe-harbored equipment pipelines from current development are built out.

Despite the near-term uncertainty, the fundamental demand drivers for community solar remain strong. Millions of Americans cannot install rooftop solar. Electricity prices continue to rise. And state legislatures keep passing new enabling laws and expanding existing programs. Community solar may not grow in a straight line, but it is firmly established as a permanent part of the clean energy landscape.

Getting the Most Out of Community Solar

If you decide community solar is right for you, a few strategies can help you maximize your experience.

Compare multiple offers. Just like shopping for any service, getting quotes from several providers ensures you find the best deal. The EnergySage marketplace lets you compare available projects in your area side by side, making it easy to evaluate discount rates, contract terms, and provider reputations.

Look for no-fee programs. The best community solar programs charge no sign-up fees, no cancellation fees, and no hidden costs. If a provider wants money upfront or charges penalties for leaving, consider that a yellow flag and keep shopping.

Understand your contract length. Shorter contracts give you more flexibility but may offer slightly lower discount rates. Longer contracts can lock in better rates but reduce your ability to switch if a better offer comes along. Choose based on how long you expect to stay in your current utility service area.

Check for low-income discounts. If your household qualifies as low- or moderate-income, you may be eligible for enhanced savings. Many states now mandate steeper discounts for LMI subscribers, sometimes 15 to 25 percent or more. Ask providers specifically about income-qualified programs.

Stack with other savings. Community solar credits reduce your electric bill, but they work alongside other energy-saving measures. Improving your home's insulation, upgrading to efficient appliances, or switching to LED lighting can further reduce the bill that community solar credits are applied against, maximizing your overall savings.

The Bottom Line

Community solar is one of the simplest and most accessible ways to save money on electricity while supporting clean energy. You do not need to own a home, invest thousands of dollars, or modify your property in any way. If you have an electric bill and live in a state with community solar programs, you can likely start saving within a few weeks of signing up.

The savings are modest compared to owning your own rooftop system, typically 5 to 20 percent off your electric bill. But for the millions of Americans who rent, live in condos, or have roofs that are not suited for panels, community solar turns an impossibility into an easy win. No installation, no maintenance, no risk.

Start by searching for available projects in your ZIP code. Compare a few offers, read the contract carefully, and sign up for the one that gives you the best guaranteed discount with the most flexible terms. That is all it takes to go solar without ever owning a single panel.