Solar energy is everywhere in the United States and photovoltaic (PV) systems are being installed at higher rates than any other electricity source today.
With clean power generation that can be used anywhere the sun shines, solar is an essential technology for a more sustainable future. However, not every home is suitable for solar panels, nor is every person with an electric bill in a position to install a PV system, including renters or apartment owners.
This is where community solar programs come in, as an option to go solar without installing panels on your property.
In this guide, we break down the how, what, where, and why of community solar to help you find programs in your area and decide whether it is worth it to lower your ongoing electricity bills and carbon footprint.
What is community solar?
Community solar programs allow multiple participants to benefit from a single solar power system installation. These installations can be very large and are usually located as close as possible to those who will consume the electricity.
Community solar sites are often called solar farms, solar gardens, or shared solar projects. They can serve individuals, businesses, or any other entity that consumes electricity. While program formats vary, community solar projects are typically managed by utilities, private companies, or non-profits, offering various subscription and purchase plans.
Who can participate in a community solar program?
Available in different forms across the country, community solar programs are typically only open to a limited number of participants, based on the installation’s total energy-generating capacity. Community solar programs usually require participants to live in a designated area or within a certain distance from the solar garden itself.
While going solar is usually reserved for homeowners, community solar programs are unique in the sense that they are open to a wide variety of participants including renters, apartment dwellers, and those who live on a property without suitable installation space for a PV system.
What are the benefits of community solar?
There are many benefits of community solar programs. Here are the top four:
- Broad access. The most important benefit of community solar is the broad range of participants that can benefit. If you cannot install a PV system on your property, for whatever reason, community solar can help you achieve some of the same benefits of home solar, without an on-site installation.
- Electricity bill savings. Enrolling in a community solar program can lower your ongoing electricity bills by between 5% and 20%, depending on the circumstances. Savings depend on the program, though many solar farms offer fixed electricity or discount rates, making it easy to calculate your solar power ROI.
- Flexible participation. Some community solar farm owners offer several subscriptions or purchase plans to help you find the best solution for your ongoing electricity costs. While 20- and 25-year contracts do exist in many areas, solar farm participation can also be less of a long-term commitment than other common home solar financing options.
- Environmental impact. Lastly, the environmental benefits of community solar should not be understated, as shared PV installations play a critical role in reducing energy-related greenhouse gas (GHG) emissions. With fewer GHGs and pollutants from fossil fuel resources, widespread community solar adoption can improve local air quality and help many American cities and states reach their renewable energy goals.
How does community solar work?
Community solar programs take several different forms across the U.S., with regulations and local government or utility support varying from state to state. While there are over 1,600 unique shared solar gardens in the U.S. today, most community solar programs utilize one of the two models outlined in the table below.
| Program model | Who owns the panels | How it works |
|---|---|---|
| Third-party ownership (TPO) | The developer, a private company, or another organization. | With TPO, you purchase solar electricity at a fixed price per kWh or at a flat monthly rate, like a solar lease or PPA. |
| Community ownership | Program participants | You buy a portion of the solar farm, say 10 panels, and receive bill credits for all the solar power produced by your share. |
In both third-party and community ownership models, shared PV installations rely on virtual net metering or virtual net billing programs to ensure off-site participants can achieve solar savings. After you enroll in a program, your community solar energy credits or discounted electricity rates will appear on your monthly utility bills.
Community solar projects across the U.S.
As of 2024, there are active community solar projects in over 40 states, including Washington, D.C, with Florida, New York, Massachusetts, and Minnesota leading the country in shared PV installations. Between 2020 and 2024, community solar capacity tripled in the U.S. and experts believe that more shared solar farms will be developed in 2025 than in any other year prior.
With tax credits, rebates, and funding from the Inflation Reduction Act and other green energy initiatives, community solar projects are now more widely available to Americans than ever. Shared installations are gaining a tremendous amount of popularity among low and middle-income households, and community projects have the potential to help nearly anyone save money on utility bills, where available.
Getting started
If you would like to develop your own community solar project, there are many great resources from the Department of Energy that you can use to assist in planning, research, and permitting. On the other hand, if you are interested in becoming a community solar participant and would like to evaluate all your solar energy options, Enphase is here to help you find the best solution for your home’s electricity.
Community solar FAQs
There are a few common misconceptions about community solar. To name a few, many people believe that they may not qualify for community solar, that programs are too expensive to be worth it, or that local offers are too good to be true. In reality, community solar programs are one of the most inclusive and financially flexible ways to “go solar” and save money on energy bills today.
Although every community solar program is different, few require upfront costs to join. For consumer protection, some states also have laws and regulations in place that bar community solar programs from including sign-up fees, exit fees, or other non-essential charges in customer contracts.
To locate a community solar project near you, we recommend starting the process with a search engine to find local resources. Community solar projects can be sponsored by local governments, private businesses, and other organizations, and are usually available only to participants in a designated geographical area. If you’re not sure where to start, we also recommend contacting your electric utility to learn about any active or upcoming community solar farms near you.
