The Brooklyn renter
There’s a renter in Brooklyn who lives in a fifth-floor walkup. Her landlord will never put panels on the roof. She has no roof. She has no yard. She also has a $1,800 annual electricity bill and an interest in not paying ConEdison for fossil fuel electricity. So in 2023 she signed up for a community solar farm located 200 miles upstate in the Mohawk Valley. She doesn’t own any panels. She doesn’t have any equipment in her apartment. She just pays a subscription fee and gets a 10% credit on her utility bill every month for the solar electricity “her” panels produce. Her annual savings: $180. Her involvement: 20 minutes of signup paperwork.
Community solar is the most overlooked option for the people who need green electricity options the most — renters, condo owners, people with shaded roofs, anyone who can’t put panels on their own building. Let’s get into how it works and whether it’s actually a good deal.
What it actually is
A community solar project is a solar array (usually 1–5 MW, the size of a small commercial installation) located somewhere with good sun, owned by a developer or utility. The array is divided into shares or subscriptions, sold to nearby residential customers who can’t or don’t want to install their own panels. The array feeds the grid; subscribers get utility bill credits for their share of production.
You don’t own physical panels. You own (or subscribe to) a portion of the array’s output. The arrangement happens through your utility bill: the array’s production is credited to subscribers’ bills at a discount to retail rate, typically 5–15%.
How the models work
There are two main subscription models:
- Subscription: Pay a monthly fee, get bill credits for your share of production. No upfront cost. Can usually cancel with 30-90 days notice. The dominant model for residential community solar in 2026. Savings typically 5–15% of electricity cost.
- Ownership: Buy a share of the array outright ($1,000–5,000 per share). Higher savings (15–25%) because you’re not paying ongoing subscription overhead. Longer commitment (often 20+ years). Less common because it requires upfront capital.
Who it’s actually for
Community solar makes sense if any of these are true:
- You rent and can’t install panels
- You own but your roof is too shaded, too small, wrong direction, or structurally unable to support panels
- You’re in a condo or HOA that prohibits panels
- You move every 2–3 years and don’t want to invest in a permanent installation
- You want some green electricity without thinking about it
It does NOT make sense if:
- You own a home with a good sunny roof — rooftop solar saves you more
- You want backup power during outages — community solar offers none
- You want to fully eliminate your electric bill — community solar typically offsets only a portion
The catch (limited availability, waiting lists)
Community solar is available in roughly half of US states and most of EU. Even in states with active community solar markets, available capacity is limited. Many projects have 6–18 month waiting lists. New developments come online slowly because utilities, regulators, and developers are all involved in approvals.
Some red flags to check before signing:
- Long contract lock-ins (anything over 5 years is unusual; most are month-to-month or 1-3 year)
- Exit fees (most don’t have them; some predatory developers do)
- Pre-payment requirements (almost always a bad sign)
- Promised savings dependent on future utility rate increases (treat as marketing, not fact)
The numbers
Typical community solar subscription:
- Monthly subscription fee: covers 50–80% of your typical electric bill
- Credit per kWh produced: ~90% of retail rate
- Net monthly savings: 5–15% of total electric bill
For a household with a $150/month electric bill, that’s typically $90–225/year saved. Not life-changing but not nothing — especially given the alternative is zero participation in solar.
FAQs
Do I need to live near the solar farm?
Within the same utility territory, yes. Usually within the same state or sub-region. The Brooklyn renter’s “200 miles away” works because she’s in NY State and the farm is in NY State.
What if I move?
Subscription models let you cancel or transfer. Ownership models depend on the contract — some allow transfer to another address in the utility area; some don’t.
Am I getting the actual electricity from those panels?
No. Electricity on the grid is fungible. You’re getting credit for what they produce, but the electrons in your apartment are from the same grid mix as your neighbor’s.
Does community solar exist in non-US countries?
Yes, with different structures. EU has “energy communities” (often cooperative ownership). UK has community energy cooperatives. Australia has “solar gardens.” Concept is similar; legal structures vary.
Is the developer making money off me?
Yes. Developers take a margin on top of utility credits. That’s why subscription savings are 5–15% rather than 30%+ — the developer is between you and the array. Ownership cuts out that margin.
Will community solar replace rooftop solar?
For renters and apartment dwellers, yes. For homeowners, no — rooftop solar is still better economically. Community solar is the bridge for the people rooftop solar can’t reach.
The landing
Community solar is for everyone the solar industry hasn’t been serving. Renters. Condo owners. People with shaded roofs. People in apartments. About 40% of the US population lives in housing where rooftop solar isn’t an option. Community solar lets that 40% participate in the renewable shift without owning a roof or a backyard. The Brooklyn renter’s $180/year isn’t going to fund a vacation, but it’s $180 going to a solar farm instead of a coal plant, and that’s the point. If you can’t put solar on your building, find a community project. If your area doesn’t have one, ask your utility why.