If you’re looking to go solar but can’t install panels on your roof, you’re not alone. The National Renewable Energy Lab estimated that nearly half of American households are unable to install solar. From limited sunlight to rental agreements, logistics can get in the way of reaping the benefits of clean energy. Thankfully, you don’t have to install solar yourself to own your share of solar power.
What is community solar?
Imagine if, rather than work to put solar panels on your own roof, you could own a portion of the energy generated by a solar farm nearby. That’s community solar.
People who rent or whose houses are shaded by tree cover can still reap the benefits of solar by participating in an available community solar program. Through their utility, these homeowners can sign up to purchase a portion of their energy directly from the community solar farm, in exchange for a reduction in the total cost of their utility bill. By purchasing solar directly from the source, homeowners can pay less than standard utility rates, typically saving 5 to 15 percent of their utility bill.
So who actually installs the solar panels? It depends. Some are owned by utilities themselves, while others are owned by third-parties like local governments, developers, or community groups. State policy helps create and incentivize these programs.
Why community solar?
Community solar programs are unique because they enable a previously untapped market to help support clean energy growth. Whereas previously real estate developers would have no mechanism to help their tenants go solar, now they can install a community solar system and support their tenants’ energy needs. And for those who can’t install their own residential solar, community solar offers a way to earn utility savings and support solar without a personal rooftop installation.
As of June 2024, the United States has more than 3,400 installed community solar projects with a total of 7 GW of solar power capacity, enough to power roughly a million households. Most of the projects are located in Florida, New York, Massachusetts, and Minnesota, where robust community solar programs are in place.
Bright future for community solar
There is an impressive amount of community solar out there, but also plenty of room for continued growth. In 2021, the Department of Energy set a target of 20 GW of community solar by 2025, which is likely out of reach barring massive growth this year.
Community solar deployment has been slowed by difficulties working with utilities, integrating to the grid, and getting approval for land use. Preserving and expanding on state support and federal incentives like EPA’s Solar for All program’s $7 billion will be essential to helping community solar overcome these barriers and continue to grow in the future.
As it stands, we have only tapped a tiny fraction of community solar’s potential. The National Renewable Energy Laboratory estimates that community solar in the United States has the potential to provide 1,710 TWh of electricity annually, enough to power more than 90 million typical US homes for a year.
Because community solar programs are supported by state legislation, the key for further community solar growth will be getting more states to establish robust community solar programs. In states where community solar is booming, such as New York and Massachusetts, there are robust incentives and/or mandates that encourage development and get utilities on board. As of December 2023, 23 states and Washington D.C. have policies on the books to support community solar.
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Evan works as a campaign associate and organizer on Environment America’s clean energy campaigns. Evan lives in Amherst, Massachusetts, where he enjoys running, hiking and tennis.
