Solar energy — clean, powerful, and increasingly accessible — promises a revolution in the energy market. However, installing solar panels on rooftops is not always possible or economically viable. This is where a community solar project comes into play, offering an innovative way to unite communities and harness the benefits of solar energy collectively.
According to the Pew Research Center, one-third of Americans understand the potential of alternative energy sources, including solar and wind.
Source: Pew Research Center
But what are the benefits and challenges of solar panels projects? Is it possible to obtain shareholder capital in the region’s energy system? In this article, Resident Solar Power specialists will provide answers to these questions and discuss how community solar works and the stages of its creation.
Stay with us and find out how it will change the energy future of the USA.
Community solar is steadily growing in the USA. According to Wood Mackenzie and the Coalition for Community Solar Access, total US community solar capacity passed 10 GW in late 2025, and the market is expected to grow by about 12% in 2026.
Community solar energy provides an apt solution. It enables individuals to collectively own and benefit from a shared solar power station.
Even if you have all the means to buy a solar system but want to join a community solar project for other reasons, you can do so. The combined efforts of many homeowners will gradually transform the area into a solar oasis.
Furthermore, the idea of community solar energy addresses societal dilemmas such as economic inequality and energy security.
The pleasant advantage of belonging to solar energy communities is that your role is simplified. As a client, you usually subscribe to a share of a local solar farm’s output, often with no upfront cost, and receive bill credits for electricity generated through solar panels.
Source: Environmental Law & Policy Center
The developer builds a large solar power station in your community. The station generates energy from sunlight and sells it to the utility, feeding into the local grid.
As an individual, you sign up for the community solar project and become a subscriber to a share of the power station’s capacity. In most programs today, you don’t buy anything upfront: you simply pay for the credits at a discount, usually 5-15% below the utility rate. Some programs also let you buy (own) a share of the project, which works like buying shares in a company and entitles you to a portion of the generated electricity.
Once the power station is up and running, the utility monitors the electricity output from your share and credits the corresponding amount to your account. These credits effectively lower your overall expenses for electricity. As a result, you have energy, save money, and don’t have to worry about solar panel maintenance or repairs (that responsibility lies with the developer).
The revolutionary path to cost savings and environmental protection is possible through a community solar project. Enjoying the benefits of community solar is one thing, but to understand all the processes, let’s explore how it works.
The success of the concept depends on careful planning, coordinated teamwork, and active community involvement. By uniting residents of neighborhoods and then cities into a single solar-powered community, there is a chance to transform a specific state into an energy-independent and eco-friendly entity.
Although anyone can join a community solar project, for certain groups of people, it’s a lifesaver. Here are a few cases when it’s beneficial and necessary to become a participant:
| Roof-mounted solar panels | Firstly, inconvenience may be tied to housing type, such as residing in a multi-unit or rental property. In the former, individual roof access is unavailable, while in the latter, landlords may disapprove of solar system installations, and it’s not financially beneficial for you to equip someone else’s house. Secondly, even if you own a house, the type of roof may be unsuitable for installation — having many bends, windows, protrusions, etc. |
| Ground-mounted solar panels | A solar system requires a lot of space in the yard. It should be a fairly spacious empty plot, preferably without additional buildings and trees that may obstruct direct sunlight on the panels. |
Community projects allow you to receive credits for electricity. Each participant has the right to use them to offset their utility bills. Thus, you remain in the black — having an uninterrupted electricity supply and saving money. On average, savings amount to 5-15% per month. It can be more depending on the size of the investment, local energy tariffs, etc.
The community solar project is simpler and cheaper because a lot of issues are handled by the operating company. They conduct research and select suitable equipment, obtain all necessary permits, and carry out system installation and monitoring. Meanwhile, you receive bill credits without additional costs, usually by simply subscribing to the solar power station.
Solar energy is a clean energy source, untainted by fossil fuels. Being a project participant, you power your devices or light your house with the sun and automatically contribute to reducing your city’s/district’s dependence on gasoline, gas, oil, etc. Moreover, community solar projects often belong to and are managed by local companies, so your contribution helps support the state’s economy.
Historically styled houses, like Victorian homes, possess distinctive aesthetic features that risk being compromised during the installation of solar panels. The visual dominance of these panels can disrupt architectural harmony.
In some areas, there are zoning rules that regulate the external appearance of buildings to preserve visual unity. However, usually, community solar companies take care of such matters.
According to the Global Market Outlook For Solar Power 2023-2027, the Community Solar sector currently has little demand compared to utility, residential, and commercial solar panels. The gap is clearly visible on the chart.
Source: Solar Power Europe
Although community solar energy offers broad access to solar power for all Americans, there are certain obstacles to its development, including:
However, despite the obstacles, there are opportunities for the development of a solar community:
1. Reduction in the cost of solar panels. This has been the case for many years and is a significant step forward in the development of community solar energy.
Source: Our World In Data
Based on Our World In Data estimates, the price has decreased from $100 to $0.5 over 50 years, and the total capacity of one panel has increased.
2. Government support. Federal support has become less certain. The One Big Beautiful Bill Act of 2025 phases out the federal investment tax credit used by community solar projects, so developers are racing to meet construction and in-service deadlines. In August 2025, the EPA also canceled the $7 billion Solar for All program for lower-income households, although a federal judge ruled the cancellation illegal in September 2026. Earlier, the Department of Energy set a long-term goal to substantially reduce emissions by 2050.
Source: Energy.gov
States remain the main drivers of community solar: they offer local incentives and grants to support the development of community solar energy. This will reduce dependence on fossil fuels and make society more resilient to fluctuations in energy resource prices.
3. Economic benefits. Solar projects, in addition to saving money for participants, have significant economic advantages for the local community solar.
It depends on individual circumstances. First, determine if a community solar project is available in your region/city. Then, calculate the amount of electricity you use. We recommend comparing prices for community energy and traditional energy and exploring different subscription options. If unsure whether to join the project, discuss the details with an energy consultant.
Asserting that solar energy is the future, we’re not just throwing words around. Solar remains the top source of new power capacity in the US: according to SEIA, the country installed 43.2 GW of solar in 2025. So, we can anticipate that community solar energy will keep saving money and providing clean energy to many Americans’ homes, although its growth now depends on state programs and federal tax credit deadlines.
A community solar system is a power station that generates energy from solar panels and distributes it among participants in the community solar program.
It can have different owners. Private companies and non-profit organizations build and own them, selling electricity. If the owner is a municipality, the idea of building a community solar station is based on a desire to provide its residents with clean energy.
Accordingly, the sources of financing are different.
Regardless, to safeguard the invested funds and efforts, the developer must secure willing subscribers. If you are within the service area of a specific community solar station, you can take on this responsibility.
So, imagine that you have signed up for a local community solar project and subscribed to (or paid for) a certain number of panels. Now, they generate energy and supply it to the city or district grid, and you regularly receive electrical energy.
If desired, you can cancel your subscription by notifying the information center of the power station’s owning company. Please note that sometimes you may need to give a 3-month notice for cancellation.
In addition to supplying electricity to meet your household energy needs, a solar power station allows you to receive monthly credits for the energy produced by your share of panels:
Ultimately, becoming a subscriber to a community solar power station is a wise decision that ensures the development of solar autonomy for the city/region.
It may seem that the United States’ inclination towards sustainability in green energy production began relatively recently. However, as far back as 2008, Massachusetts took the first step towards solar energy at the state level. The state government officially adopted a decision allowing and regulating the activities of solar power communities.
NREL says that as of 2022, more than 20 states, including the District of Columbia, have joined Massachusetts in this endeavor. Since then, more markets have moved in this direction: Ohio, Iowa, Pennsylvania, and Michigan are developing project pipelines, and new legislation there could add up to 1.5 GW of community solar by 2030.
Source: NREL
Community solar energy is expected to continue to develop further, given its current pivotal role in the transition to a sustainable energy system. This evolution is attributed to various factors, such as the declining costs of solar panels, rising demand for clean energy, and new state programs, although the phase-out of federal tax credits makes further growth more challenging.
In states where legislative authorities have not yet passed bills permitting the use of energy for community solar, the progression toward renewable energy is being impeded. It turns out that even if people want to participate in a community solar project, they do not have the legal opportunity to do so.
A logical question arises: Why is the government delaying the coordination of legal matters when it sets goals for achieving independence from fossil fuels as quickly as possible? The answer is resistance from municipal structures. They do not want competition in the energy market, where they hold a dominant position, and strive to maintain control over their service territory.
Indeed, if solar power plants provide city residents, and later the entire state, with free energy, the revenues of municipal enterprises from its sale will significantly decrease. This unpleasant prospect motivates lobbying for the adoption of appropriate laws to protect their interests.
Transitioning to community solar energy is possible but requires efforts from all stakeholders. Americans, when united, can tilt the balance in their favor.
What actions can you take today?
| Support the passage of laws | This is one of the most effective ways to help. Local legislators need to know that their constituents support the idea of community solar energy. There are numerous ways to express support, such as: • Sending emails from residents of the district • Signing and distributing relevant petitions • Actively participating in thematic public hearings • Voting for officials who support community solar energy |
| Inform friends | Let’s recall the famous Latin adage: “Knowledge is power.” And it works: the more informed people are, the more attention is paid to the problem, and the higher the chances that measures will be taken to solve it. Therefore, you have the option to: • Explain to friends how joining a solar panel project will save money, make the city energy-efficient, etc. • Share content from websites of community solar companies that run similar projects • Invite them to join you in supporting the development of community solar energy • Highlight your position on social media |
| Invest in community solar project | Funds are often the stumbling block for potentially successful projects. Lack of sufficient resources can stop the process at the stage of generating the idea of creating a community solar farm. Therefore, if you have the opportunity, invest in and purchase electricity from suppliers that support community solar energy. |
Overall, any efforts aimed at developing a solar community will be beneficial. Only through coordinated joint efforts is it possible to create a new energy future for the United States and the planet.
Community solar energy is not just an alternative energy supply model; it’s a catalyst for change. Thanks to it, everyone can take control of their energy destiny, pool resources, and invest in a clean and environmentally friendly energy source for solar-powered communities.
Solar projects offer residents, businesses, and local authorities a unique opportunity to move toward a sustainable, decarbonized future. Subscribers of a community solar project can save money, reduce CO2 emissions, achieve energy autonomy for the area, and foster new environmental awareness — all of this is open to them!
The Resident Solar Power website provides more reliable and up-to-date information about everything related to solar systems in the USA.
Community solar programs aim to make solar energy accessible to people who cannot install their solar panels. People from one service area subscribe to or invest in a shared solar power plant, later receiving credits on their utility bills for electricity and contributing to environmental protection.
Community solar companies take on organizational and legal responsibilities and monitoring. They develop, finance, build, own, and operate solar power plants that serve multiple consumers. Some of the most prominent ones include Arcadia, Nexamp, and Perch Energy, which acquired Solstice in 2026.
Almost anyone can become a subscriber, including renters and residents of multi-unit buildings without their own roofs, as long as they live in the service area of a community solar project in a state where community solar programs are operational.
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