Community solar projects give energy customers a way to access solar energy without owning their own solar power system.
What is community solar?
Community solar projects are shared solar power installations. These projects allow multiple energy consumers to share access to solar power by collectively supporting a shared solar energy asset.
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How community solar works
Community solar installations have various types of ownership models:
- Utility ownership: In a utility-owned community solar program, a utility company owns and operates the solar power installation.
- Collective ownership: In some community solar models, subscribers collectively own the solar installation. These are sometimes called community solar cooperatives, or co-ops.
- Third-party ownership: Some community solar assets are owned by a nonprofit or a special-purpose vehicle.
Community solar typically operates on a subscription model. Eligible customers pay a subscription fee to support the operation and maintenance of a collectively owned solar array. Electricity generated by the community solar project is sold to the local power grid. In exchange for their monthly or annual contribution to the project, subscribers receive credits on their utility bills.
Benefits of community solar
Community solar programs have several key benefits:
Access: Community solar programs broaden access to solar energy by providing it to utilities customers who cannot own their own solar-power systems, either because they can’t afford the capital investment, they do not own their residence, or their residence does not have a suitable site for solar-power installation.
Resilience: When paired with battery storage, community solar assets can also provide backup power during broader outages.
Environmental impact: By reducing reliance on fossil-fuel power generation, community solar can improve air quality and community health.
Community solar in the United States
Some states have made much greater progress than others in implementing community solar—and it has little to do with their size, geographic location, or political party control.
The chart below shows the top 10 states by solar capacity installed as of December 28, 2024:
Learn more about community solar tax-credit financing
Evergrow helps owners of community solar projects access tax-credit financing. To learn more, click Get Started above to speak with a member of our team.
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