What Is Community Solar? Complete Guide To Shared Solar (2025)
Learn what community solar is, how it works, and how you can save 5-20% on electricity bills without installing panels. Complete guide with real examples.
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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 such as individuals, businesses, nonprofits, and other groups. In most cases, customers benefit from energy generated by solar panels at an off-site array.
Community solar programs generate electricity through large solar arrays that route energy to the local power grid. Local subscribers (or owners) of the community solar program pay for a share of the energy generated by the project, typically by paying a monthly fee directly to the program itself.
Community solar products may also include nonfinancial benefits, such as environmental benefits (e.g., renewable energy certificates). There are always at least four actors in a community solar project: the host, the sponsor, the utility, and the subscribers. The host is the owner of the location where the community solar project will be located.
Community solar projects strengthen the electric grid by providing distributed generation that can reduce strain during peak demand periods. These projects also create local jobs during construction and ongoing maintenance while keeping energy dollars in the local economy rather than sending them to distant fossil fuel producers.
Learn what community solar is, how it works, and how you can save 5-20% on electricity bills without installing panels. Complete guide with real examples.
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