What is community solar and how does it save money?

Community solar lets you subscribe to a share of a solar farm without installing panels on your home. You receive bill credits for the power your share produces, typically at a 5–15% discount to your utility rate. It's available to renters, homes with bad roofs, and anyone in a participating utility territory.

How much can I save with a community solar subscription?

Most community solar subscribers save 5–15% on the portion of their bill covered by their subscription. On a $150/month electric bill with 50% community solar coverage, that's about $45–$135/year in savings. Actual savings depend on the subscription discount rate and how much of your usage the share covers.

How much does community solar typically save?

Community solar subscribers typically save 5–15% on the portion of their electricity bill covered by community solar credits. Some programs offer fixed discounts; others fluctuate with utility rates. The key advantage over rooftop solar is no installation — you receive credits on your bill for your share of a remote solar farm.

How is community solar different from rooftop solar?

With rooftop solar, you own panels on your roof and offset your own consumption. Community solar involves subscribing to a share of an off-site solar farm — you don't own anything, but receive bill credits proportional to your share's production. Community solar is ideal for renters, those with unsuitable roofs, or anyone who wants solar benefits without installation.

Community Solar Savings Calculator

Calculate how much you save with a community solar subscription compared to paying full retail utility rates. Community solar lets renters and homeowners with unsuitable roofs access solar savings without installing panels.

Subscription Size (kW)

Community Rate ($/kWh)

Retail Rate ($/kWh)

Monthly Usage (kWh)

Subscription Term (yrs)

About This Calculator

The Community Solar Savings Calculator quantifies the financial benefit of subscribing to a shared solar farm rather than installing panels on your own roof. Community solar programs — available in about 20 U.S. states — allow households to subscribe to a portion of a utility-scale solar farm and receive credits on their utility bill for their share of the farm's production, typically at a rate 5–15% below the retail utility rate. This makes solar savings accessible to renters, condo owners, homeowners with shaded or unsuitable roofs, and anyone who prefers not to deal with rooftop installation.

The key metric in any community solar subscription is the discount rate: the percentage below retail that the community solar rate sits. A community solar rate of $0.11/kWh versus a retail rate of $0.14/kWh represents a 21% discount — every kWh from the subscription saves you $0.03 compared to what the utility would charge. The size of your subscription relative to your total usage determines how much of your bill benefits from this discount. Most programs allow subscriptions covering 50–100% of your historical usage, though some utilities cap subscriptions at 100% of consumption.

To evaluate a community solar offer, verify: the specific per-kWh credit rate and how it is applied to your bill, whether the rate includes an annual escalator (escalators erode savings over time just like PPA escalators), the subscription term and cancellation policy, and how credits work if you move. Some programs offer month-to-month or 1-year terms with easy cancellation; others lock you into 10–25 year contracts. Shorter terms with no cancellation penalty are lower risk, especially if you are renting or uncertain about your future address.

Community solar is a particularly strong option in states like New York, Illinois, Massachusetts, and Minnesota, where robust programs and favorable utility policies make discounts reliable and subscription terms reasonable. It delivers genuine savings with no upfront investment, no roof modifications, no permits, and no maintenance responsibility — making it an excellent first step into solar for households not yet ready for rooftop ownership.

Calculations based on NREL solar modeling data and industry-standard assumptions, built and maintained by the independent SolarToolsOnline research team.

Estimates only — not financial, tax, or legal advice. Verify important results with a licensed solar installer or financial professional before making decisions.