Billing Concepts

What Is Community Solar?

Quick answer

Community solar lets you subscribe to a share of a solar array built elsewhere — a nearby field or rooftop — and receive bill credits for the electricity it generates, without installing anything on your own property. It's designed specifically for renters, businesses that lease their space, or anyone whose roof isn't suited for solar, who still want to benefit from solar generation.

How the subscription model works

A community solar developer builds a solar array and sells subscriptions (or, in some structures, shares) to nearby utility customers. Each subscriber is allocated a portion of the array's output, and the electricity that portion generates is credited to their utility bill — typically at a modest discount to what that electricity would otherwise cost — while the physical panels stay on the developer's site, not the subscriber's property. The subscriber keeps their existing utility account and bill; the community solar credit simply reduces what's owed.

Who it's actually for

Community solar exists specifically for people and businesses who want solar's savings without rooftop solar's requirements. Renters can't install panels on a building they don't own. Businesses with a shaded lot, a leased space, or a roof unsuited to solar (structural issues, the wrong orientation, a roof due for replacement) face the same barrier. Community solar removes the property-ownership and roof-suitability requirements entirely — the only real requirement is being a customer of a utility where a program operates.

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Where it's available

Community solar isn't universal — it depends on specific state legislation or utility programs that enable it, so availability varies significantly by state and even by utility territory within a state. Where it does exist, program details (subscription length, cancellation terms, the size of the discount, whether the credit rate is fixed or can change) vary considerably between developers and states, so the specifics of an actual program contract matter far more than a general description of how community solar works.

What to check before subscribing

Because a subscription typically involves a contract term, it's worth confirming: how the credit is calculated and whether that rate can change, what happens if you move within the same utility territory (many programs allow transferring the subscription), any early cancellation terms, and — most importantly — what the realistic net savings look like after accounting for the subscription's own cost, if any, compared to your current bill.

Frequently asked questions

Do I need to own my property to join a community solar program?

No — that's one of the main advantages. Renters and businesses that lease their space can subscribe, since nothing gets installed on the subscriber's own building.

Is community solar available everywhere?

No, it depends on state policy — community solar requires specific enabling legislation or utility programs, so availability varies significantly by state and utility territory. Checking whether a program exists in your specific area is a necessary first step.

How much can community solar actually save?

It varies by program, but subscribers are typically promised a modest discount off what the credited electricity would otherwise cost — commonly in the range of a small single-digit to low double-digit percentage — rather than a dramatic reduction, and the details of a specific program's contract terms matter more than a generic industry figure.

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