- Community solar lets you buy a share of a local solar farm and get credits on your electric bill. No panels on your roof.
- Typical savings are about 5–20% on the credited part of your bill, not on the whole bill.
- It only exists where state law allows it, mostly in the Northeast, Midwest and a few western states.
- Read the contract: cancellation fees, contract length and billing delays cause most complaints.
What is community solar, and can it really cut your bill without panels on your roof? If you rent, live in an apartment, or have a roof that doesn’t suit solar (too much shade, the wrong angle, or a landlord who says no), it offers a way to get some solar savings anyway. No installation, no roof access, usually no upfront cost. But it’s a financial product, not magic, and the details decide whether you save.
What Is Community Solar? The Basic Idea
A developer builds a solar farm, usually ground-mounted, somewhere in your utility’s area. You subscribe to a share of its output. The power goes into the local grid, not to your home. Your utility then credits your bill for your share of what the farm produced, and you pay the solar company a discounted price for those credits. Your saving is the gap between the two.
- A developer builds and runs a solar farm in your utility’s territory.
- When you sign up, the provider looks at your past use and assigns you a share, often sized to cover roughly 80–100% of your usage.
- The farm feeds the grid, and the utility tracks the kWh linked to your share.
- The utility puts a credit on your bill.
- You pay the provider less than the credit is worth, often 5–20% less. Some programs combine both on one bill.
Real Savings: What to Expect
Most simple subscriptions offer a fixed discount, commonly 5–20%, on the value of the credits. That is a discount on the credited part of your bill. Fixed charges, delivery fees in some states and any use the credits don’t cover still cost full price, so your total bill usually drops by less than the headline number.
Community Solar Savings Calculator
An estimate only. Check the credit rate and discount in your actual contract.
Credits often show up 1–3 billing cycles late, and winter credits are smaller because the farm produces less. Judge the results over a full year.
Where Community Solar Is Available
Community solar needs state rules that let utilities credit subscribers. Roughly two dozen states plus Washington, D.C., have such programs or laws, with the largest markets in New York, Illinois, Maine, Minnesota, Massachusetts, New Jersey, Maryland and Colorado. New York, Maine and Illinois alone accounted for about two-thirds of installs in 2024, according to Wood Mackenzie and the Coalition for Community Solar Access. Some utilities also run their own shared solar programs.
How the credit is valued matters a lot. States that price credits close to the retail rate give subscribers the best deals. Others use more complex “value” formulas, and the same advertised discount can mean smaller real savings.
| Community solar | Rooftop solar you own | |
|---|---|---|
| Upfront cost | Usually none | High (or a loan) |
| Typical saving | About 5–20% on credited use | Often much more over 25 years |
| Works for renters | Yes | Rarely |
| Ownership | None | You own the system |
| If you move | Transfer or cancel (check fees) | Panels stay with the house |
| Backup power | No | Only with a battery |
What to Check Before You Sign
- Discount and credit rate: is the discount fixed, and on what value?
- Contract length and cancellation: what happens if you move or want out? This causes the most disappointment.
- Price escalators: does your rate rise each year?
- Fees and credit checks: many programs need no credit check, and some states ban them.
- Unused credits: do they roll over or expire?
- Billing: one combined bill or two separate bills? How late do credits usually arrive?
- Low-income programs: some states guarantee bigger savings for income-qualified households. The Department of Energy’s community solar pages explain the basics.
Watch: Community Solar, Explained
Maine Public, the state’s public broadcaster, explains how community solar works and what subscribers should watch out for.
What Real Subscribers Say
These are individual experiences and official warnings, summarized in our own words.
A subscriber in Cook County, Illinois, wrote in a 2025 review that savings settled at about 5% of the total utility bill, or about 10% of the solar part. The provider’s billing ran 3–4 months behind, which they said confuses many people. Their view: not much, but a start.
Source: Trustpilot reviewIn February 2025, Maine’s Public Advocate warned that some community solar customers didn’t get the savings they were promised, because they were billed at the wrong rates. In some cases they paid more than they would have without the subscription. The office told companies to fix the errors and refund overcharges.
Source: Maine Office of the Public Advocate- Market size and state data from Wood Mackenzie, the Coalition for Community Solar Access and SEIA
- Typical discounts and contract terms from published program rules
- Consumer warnings from state officials
- Subscriber reviews, good and bad
We don’t sell community solar subscriptions, and no provider paid to be included.
When Community Solar Isn’t Worth It
- The contract has a big cancellation fee and you might move soon.
- The discount is small and there are monthly fees, which can wipe out the saving.
- Your rate rises every year while utility credits don’t.
- You own a good sunny roof and can afford rooftop solar, which usually saves more over time.
- You want backup power. Community solar gives credits, not electricity during an outage.
Frequently Asked Questions
What is community solar in simple terms?
You subscribe to part of a local solar farm. Your utility credits your bill for your share of its output, and you pay the solar company a bit less than those credits are worth.
How much does community solar save?
Usually 5–20% on the credited portion of your bill. The saving on your total bill is smaller because fixed charges remain.
Can renters join community solar?
Yes. That’s one of its main advantages: no roof or landlord permission needed.
What happens if I move?
Often you can transfer to a new address in the same utility area, or cancel. Check the notice period and any fees.
Does community solar keep my power on in a blackout?
No. The credits are on paper; your home is still powered by the grid.
Our Verdict
So, what is community solar worth? For renters and people with unsuitable roofs in states that offer it, it’s an easy way to save a modest amount and support local clean energy. Choose a plan with a clear fixed discount, no or low cancellation fees and no yearly price increases, then check your bills for a full year. If you own a good roof, compare it with rooftop solar first.
Keep reading
- Balcony Solar and DIY Solar Kits: What Is Legal, What It Costs, What You Save: what plug-in solar costs and where it is legal.
- How Many Solar Panels Do I Need? Formula, Calculator and Examples: size a solar system for your home.
- Solar Payback Period in 2026: How Much You Save and How Long It Takes: how long solar takes to pay for itself.