What is Community Solar?
The U.S. Department of Energy defines community solar as any solar project or purchasing program, within a geographic area, in which the benefits of a solar project flow to multiple customers such as individuals, businesses, nonprofits, or other groups. In most cases, customers are benefitting from energy generated by solar panels at an off-site array.
Community solar customers can either buy or lease a portion of the solar panels in the array. Customers typically receive an electric bill credit for electricity generated by their share of the community solar system—similar to someone who has rooftop panels installed on their home. Community solar can be a great option for individuals who are unable to install solar panels on their roofs because they do not own their homes, have insufficient exposure to sunlight or roof conditions to support economic feasibility to install a rooftop PV system due to shading, roof size, or other factors, or for financial or other reasons.
Community solar is rapidly growing across the country. As of December 2021, there are more than 5 gigawatts of community solar capacity across 40 states and Washington, D.C. The National Renewable Energy Laboratory tracks installation data on community solar across the country and shares regular updates through the Sharing the Sun effort and the National Community Solar Market Trends webpage.
Why is Community Solar Important?
Community solar supports equitable access to renewable energy by allowing all households to benefit from solar energy, even if they are unable to install solar panels on their rooftop. In areas where solar power is less expensive than traditionally-generated electricity, community solar subscribers can save money on their monthly bills while also supporting a robust and resilient clean energy system. If community solar subscribers move to a new home within the same utility service territory or county, they can typically continue to benefit from their community solar share. Programs may also have options for selling or donating subscriptions.
Because most community solar arrays are located off-site, utilities or developers can strategically locate the systems in areas of the grid that can benefit the most from additional generation capacity. Utility-owned, community solar can help utilities improve relationships with customers, reduce energy burdens, and increase customer engagement in meeting renewable energy goals. Customer-owned or community-owned community solar arrays allow communities to have control over their energy resources while building local community wealth and energy democracy.
Community solar can be particularly beneficial for low- or moderate-income (LMI) households that face high energy burdens. Some community solar programs provide discounted or free subscriptions to income-qualified customers, allowing them to immediately take advantage of energy bill savings.
SETO Research in Community Solar
The Solar Energy Technologies Office (SETO) engaged the public to develop strategies for equitable community solar development. A request for information helped gather input on barriers to rapid community solar deployment and other community-serving models to increase solar access, including meaningful benefits such as bill reductions, workforce development, local resiliency, and community wealth building.
National Community Solar Partnership
The National Community Solar Partnership (NCSP) is a coalition of community solar stakeholders working to enable community solar to power the equivalent of 5 million households by 2025, generating $1 billion in energy bill saving and enabling communities to realize other benefits, such as increased resilience, community wealth-building, and a robust workforce. NCSP partners include state and local governments, solar developers, lenders, affordable housing stakeholders, community-based organizations, and others in the community solar sector. Partners leverage peer networks and have access to technical assistance and support to set goals and overcome barriers to expanding community solar access. NCSP is a U.S. Department of Energy initiative led by the Solar Energy Technologies Office, in collaboration with the National Renewable Energy Laboratory and Lawrence Berkeley National Laboratory. Learn more about NCSP.
Additional Resources
- National Renewable Energy Laboratory’s Community Solar Page
- SETO Solar in Your Community Challenge (prize challenge 2017-2018)
- National Renewable Energy Laboratory: Up to the Challenge: Communities Deploy Solar in Underserved Markets
- National Renewable Energy Laboratory: Shared Solar: Current Landscape, Market Potential, and the Impact of Federal Securities Regulation
- NC Clean Energy Technology Center: Community Solar Opportunities for Low to Moderate Income Households in the Southeast
To view specific SETO community solar projects, search the Solar Energy Research Database.
Learn more about SETO's equitable access to solar energy research, other solar energy research in SETO, and current and former SETO funding programs.