Community solar is rapidly becoming one of the most practical ways for businesses, institutions, and residents to benefit from solar energy without installing solar panels on their own property. Most of our clients at ONSITE are commercial and industrial facilities. We acquire HVAC, Lighting, IAQ and other building mechanicals and place them at our customer facilities. The customer avoids CapEx and debt, secures utility form 21st century mechanical technology and eliminates forever the question of when outdated technology will be replaced. Similarly for organizations with complex facilities—such as schools, healthcare campuses, manufacturing plants, or commercial buildings—community solar provides access to renewable electricity while avoiding the operational complexity of owning and maintaining solar equipment.
At its core, community solar is a shared solar project that allows multiple customers to subscribe to a portion of a large solar array. The electricity generated by that array flows into the local utility grid, and subscribers receive credits on their utility bills based on their share of the solar production.
Instead of building solar panels on their roof or land, customers participate in a larger off-site project.
How community solar works
A typical community solar project involves four primary participants:
1. Solar Developer
A developer finances, builds, and owns a solar farm, often ranging from 1–10 megawatts (MW). These arrays are commonly located on open land, brownfields, or large commercial rooftops.
2. Utility Company
The electricity generated by the solar farm flows into the local power grid. Utilities track how much energy each subscriber’s share produces and apply bill credits accordingly.
3. Subscribers
Customers—ranging from homeowners to large commercial facilities—subscribe to a portion of the solar project’s capacity. This subscription represents a percentage of the electricity produced.
4. Bill Credits
Each month, the utility applies credits to the subscriber’s electric bill based on the energy produced by their share of the project.
For example:
| Item | Amount |
| Utility bill credit from solar production | $100 |
| Subscription payment to solar provider | $90 |
| Customer savings | $10 |
The subscriber saves money because the subscription cost is typically lower than the value of the energy credit.
The U.S. Department of Energy describes community solar as one of the fastest-growing segments of distributed energy because it expands solar access to people who cannot install panels themselves.
Source:
https://www.energy.gov/eere/solar/community-solar-basics
Why Community Solar is Growing
Community solar solves several barriers that have historically limited solar adoption.
No On-Site Installation
Many buildings simply cannot support rooftop solar. Structural limitations, shading, historic restrictions, or landlord-tenant arrangements can make installation difficult or impossible. Community solar eliminates these obstacles because the generation happens off-site.
Lower Complexity
Subscribers do not need to:
- Purchase solar panels
- Maintain equipment
- Handle permitting or interconnection
- Manage system performance
All of those responsibilities remain with the project developer.
Immediate Savings
Most community solar subscriptions are structured, so customers pay slightly less than the utility credit they receive. That difference produces immediate savings on electricity bills.
Accessibility
According to the National Renewable Energy Laboratory (NREL), about 50% of U.S. households and businesses cannot install rooftop solar, making community solar a key solution for expanding renewable energy access.
Source:
https://www.nrel.gov/state-local-tribal/community-solar.html
Real World Community Solar Examples
Community solar projects are now operating across dozens of states, serving a wide range of customers.
Colorado Community Solar Gardens
Colorado was one of the first states to implement community solar programs. Thousands of customers subscribe to “solar gardens” that collectively produce hundreds of megawatts of power.
Many subscribers include:
- Municipal buildings
- Small businesses
- School districts
- Residential customers
And while the program was one of the first in the country, it is currently listed as “on-hold” according to reports. This a thing to keep in mind: When signing up for a community solar subscription, verify that you are working with a reputable partner. Regulations and availability change frequently, until you have subscribed, and it is important your sign-up partner be fully informed of each program. Since the federal grant system allows each state to administer their program, the process will vary from one state to the next.
Source:
https://energyoffice.colorado.gov/cos4a
Minnesota’s Solar Garden Program
Minnesota hosts one of the largest community solar markets in the United States. Hundreds of megawatts of solar generation supply electricity to businesses, nonprofits, and residents who receive credits on their utility bills through the Xcel Energy program.
Source:
https://mn.gov/commerce/energy/solar-wind/community-solar/
Commercial Facility Participation
Large commercial facilities—especially those with multiple locations—often use community solar subscriptions to offset a portion of their energy usage across their portfolio without investing capital into solar equipment.
For organizations that prefer to preserve cash for their core operations, this can be an attractive alternative.
Are there any downsides?
While community solar provides many benefits, there are a few considerations.
Limited Availability
Community solar programs depend on state policy and utility participation. Not every state currently offers community solar options. As detailed above on the status of Colorado’s program, different states manage programs in different ways. Find a partner that can help you with the details related to your state program.
Subscription Terms
Some programs require multi-year agreements. Organizations should review contract terms carefully to ensure flexibility if their energy usage changes.
Credit Structure
Utility credit mechanisms vary by region, and savings levels can differ depending on program rules.
However, these limitations are typically administrative rather than technical. As more states adopt supportive policies, community solar access continues to expand.
Community Solar and the Future of Energy Infrastructure
Community solar represents one piece of a broader shift in how energy infrastructure is deployed and financed. Increasingly, organizations are moving away from purchasing energy equipment outright and instead accessing energy infrastructure through service-based models.
This approach allows facility managers and building owners to modernize their infrastructure while preserving capital for core business operations.
For example, organizations exploring solar or other energy upgrades often evaluate models such as Energy-as-a-Service (EaaS), which allows mechanical systems and energy equipment to be deployed without capital expenditure while transferring performance responsibility to the service provider.
More information on this approach can be found here:
https://onsiteutilityservices.com
The Bottom Line
Community solar expands access to renewable energy by allowing customers to benefit from solar generation without installing panels on their property. By subscribing to a shared solar project, businesses and institutions can receive utility bill credits and reduce energy costs with minimal operational complexity.
As community solar programs grow across the United States, they are becoming an increasingly practical option for organizations looking to reduce energy costs while participating in the transition toward cleaner power generation.