Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
Community solar lets you receive solar-powered bill credits from a shared, off-site solar project, with no panels to install and, in many programs, no upfront payment. It exists for households that can’t put solar on their own roof. The National Laboratory of the Rockies (NLR, formerly NREL) estimates that 42% of U.S. households and 44% of businesses can’t use behind-the-meter solar because they rent, have unsuitable roofs, or can’t afford the upfront cost.
As of June 2025, community solar projects operate in 43 states plus Washington, D.C., with more than 11 GW-AC of installed capacity. Access still depends heavily on where you live: 24 states plus D.C. have enabling policies. This guide is U.S.-focused; programs in the UK and EU work under different rules. It explains how community solar works, what you can realistically save, which states lead, and what to check before you sign.
📋 Key Insights
What Is Community Solar and How Does It Work?
Community solar connects utility customers to a share of a larger solar project located elsewhere in their utility territory. The U.S. Department of Energy (DOE) describes the basic flow: the project sends electricity to the grid, the local utility pays the project owner, and each subscriber receives a portion of that dollar value as a credit on their monthly electric bill. Subscribers typically pay a monthly fee for their share.
Here is a simple, illustrative example (not a quote). Suppose your share earns $1,200 in bill credits over a year and your subscription fee is 90% of that value, or $1,080. Your net saving is $120, or 10%. If the project produces less electricity in a cloudy month, your credit and your fee for that month are both smaller, since both are tied to production in this structure.
Programs differ in how credits are calculated (kilowatt-hours or dollars), contract length, cost of participation, and eligibility. Projects can be owned by utilities, by third-party developers, or by nonprofits and community groups. If you move, people who relocate within the same utility service territory or county can typically keep their share, and some programs let you sell or donate a subscription.
💰 System Cost
How Much Can You Save With Community Solar?
A DOE study, as reported by Colorado Public Radio in 2024, found that community solar can cut household electricity costs by roughly 5–15%. DOE’s Community Solar Market Trends page adds another measure: the median capacity-weighted net present value (NPV) of a residential subscription was about +$0.27 per watt-AC through mid-2024. A positive NPV means subscribers came out ahead compared with not subscribing.
Savings depend on your program’s rules. DOE’s consumer-protection guidance recommends that subscribers receive a bill credit with at least 20% household savings, with no sign-up, exit or termination fees. Programs designed for low-income households all require subscribers to achieve energy savings, according to DOE. Market-rate programs vary, so compare offers using the checklist below.
Community solar savings are real but modest compared with the potential of owning a well-sited rooftop system. Its main advantage is access: no roof, no capital and no ownership are required.
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🌎 State Comparison
Which States Have Community Solar?
Community solar depends heavily on state policy. NLR reports that, as of February 2025, 24 states and Washington, D.C. have policies that enable community solar, and 20 of them include provisions for low- and moderate-income (LMI) households. Recent additions include Alaska, which enabled community solar through Senate Bill 152 in August 2024. According to EPA, Texas and Florida have no specific community solar legislation, but utilities in states like these can still run voluntary programs.
The market is concentrated. As of June 2025, about 75% of installed capacity sits in four states.
Data visualization
Installed community solar capacity, top four U.S. states (MW-AC, June 2025). Florida leads with 3,873 MW-AC. Source: NLR (formerly NREL), Community Solar market status, updated May 2026.
Chart summary: Florida leads with 3,873 MW-AC, followed by New York (2,410), Massachusetts (1,054) and Minnesota (932). Together they hold about 75% of U.S. installed capacity, so most of the country’s community solar is concentrated in a handful of states. Florida’s total comes largely from utility-run programs rather than a state community solar statute, which is why a large market and weak legislation can coexist. Availability and savings depend on your utility and state rules, not on capacity alone.
To see whether your state has an active program, use the NLR “State Policies and Programs for Community Solar” dataset, DOE’s community solar resources, or your utility’s website.
📋 Key Insights
Low-Income Community Solar Programs
Programs for low- and moderate-income households often carry stronger savings protections than market-rate offers.
In Illinois, the Illinois Solar for All program (ILSFA) is aimed at households at or below 80% of area median income. Its subscription fee can be no more than 50% of the value of your bill credits, so eligible subscribers keep at least half. The separate Illinois Shines program does not require a specific saving, though providers frequently advertise 10–20%, according to the Institute for Local Self-Reliance. In Illinois Shines, a seller may not claim guaranteed savings unless the contract contains a binding guarantee.
In Maryland, every project must serve at least 40% of its output to LMI subscribers, and those subscribers can’t be charged more than 90% of the bill-credit value, which guarantees at least a 10% saving. Credit checks are not allowed for LMI subscribers.
Data visualization
Minimum savings in selected programs (%). Illinois Solar for All guarantees at least 50% of credit value. Source: Illinois Solar for All, Maryland PSC, U.S. DOE.
Chart summary: Illinois Solar for All sets the highest floor, at least 50% savings, because the subscription fee can’t exceed half of the bill-credit value. Maryland guarantees LMI subscribers at least 10%, since the fee is capped at 90% of credit value. DOE’s 20% figure is a recommended consumer-protection benchmark, not a legal guarantee. Market-rate programs have no such floor unless the contract states one, so compare the written terms.
Federal support is in flux. EPA’s $7 billion Solar for All program, which funds low-income solar and community solar, was terminated in August 2025. In September 2026, two federal courts ruled the termination unlawful, but the cases continue and grant disbursements have not fully resumed. Illinois Solar for All is still operating a 2026–2027 project cycle.
Eligibility often depends on income verification or enrollment in a program such as LIHEAP. Illinois Solar for All, for example, coordinates with LIHEAP so verified households can skip duplicate income checks.
📋 Key Insights
Community Solar vs. Rooftop Solar in 2026
Federal tax rules changed in 2025. The One Big Beautiful Bill Act ended the Section 25D residential solar credit for spending after December 31, 2025, so homeowners who buy a rooftop system in 2026 no longer receive the 30% credit. The commercial Section 48E credit, which helps finance many third-party and community projects, now requires solar projects to begin construction by July 4, 2026, or be placed in service by December 31, 2027. That mainly affects the pipeline of new projects; check the terms of any specific subscription you are offered.
Owning a rooftop system can deliver larger savings for a well-sited home, but it needs a suitable roof, homeownership, and either capital or financing. Community solar works around all three, which is why it is often the practical choice for renters, condo owners and shaded or north-facing homes. To benchmark your options, try our solar savings calculator.
📋 Key Insights
How to Choose and Sign Up for a Community Solar Program
Use this checklist before you commit:
Get the savings terms in writing. Look for a stated credit rate or guaranteed percentage discount. DOE recommends at least 20% household savings for consumer-protection purposes.
Ask about fees. DOE lists no sign-up, exit, termination or other fees as a best practice.
Check contract length and exit terms. Ask what happens if you move and whether you can transfer or cancel.
Request plain-language disclosures upfront. DOE also recommends an accessible complaint process.
Verify the project. Confirm the program with your utility, your state regulator, or the NLR project and policy datasets. Prefer operating projects over ones still in development.
Watch for supply-plan requirements. In some programs, such as Illinois Solar for All, your provider may require a specific electricity supply plan, so read the disclosure form.
This guide is for general information, not financial or legal advice. Program rules, credit rates and incentives change; confirm current terms with your utility, state regulator and provider.
Direct answers for US homeowners — sized for a $150/month electric bill.
Yes. The U.S. Department of Energy notes that community solar suits people who can't install rooftop panels because they rent, can't afford solar, or have roofs that aren't suitable. Nothing is installed on your building, so you don't need landlord permission. You generally need an electric account in your own name, so if utilities are bundled into your rent, ask the provider whether you can subscribe.
A U.S. Department of Energy study reported that community solar typically cuts household electricity costs by 5–15%. Income-qualified programs can guarantee more: Illinois Solar for All caps the subscription fee at 50% of your bill credits, and Maryland caps it at 90% for low- and moderate-income subscribers. Savings arrive as utility bill credits, not cash.
As of June 2025, community solar projects operate in 43 states and D.C., and 24 states plus D.C. have laws or policies that enable community solar. Access is strongest where a state program exists. States without an enabling law, such as Texas and Florida, may still offer utility-run programs. Check your utility's website or the NLR state policy database.
Terms vary by program, and many subscriptions have no sign-up cost. The U.S. Department of Energy lists best practices for consumer protection: no sign-up, exit or termination fees, plain-language disclosure documents provided upfront, an accessible complaint process, and a bill credit that delivers at least 20% household savings. Ask for these in writing before you sign.
Subscribers who move within the same utility service territory or county can typically keep their share, though rules vary by program, and some allow you to sell or donate it. Your credit is based on electricity your share actually produces, so a cloudy month means a smaller credit. Check the contract's exit terms and production estimates before subscribing.
$150/month electric bill by state
System size and payback vary by electricity rate and sun hours — see your state.
18.19¢/kWh — US average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.5 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
National blend — solar assumed to offset 75% of the bill (87% in full-retail net-metering states, 55–70% elsewhere).
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.