Community solar, as defined by the U.S. Department of Energy, includes any solar project in which multiple customers are able to benefit from a single project. These developments, while smaller than utility scale solar developments, can be beneficial for a variety of reasons.
Community solar creates accessibility to renewable energy that may not be typically available to customers. Some common barriers include, renting a dwelling as opposed to owning, the price of installing solar, or infrastructure that cannot withstand solar panels, according to the U.S. Department of Energy. Community solar bypasses these barriers by allowing customers to pay for access to a share of the energy generated by the solar development. Customers can then sell their portion to the local electric utility for credit on their electric bill.
Looking beyond the direct economic benefit to customers, community solar provides value to communities through labor opportunities, such as construction and maintenance of the facility. By sourcing employees from the community or by attracting employees to the area, community solar is able to generate additional revenue through the indirect benefits of workers spending their wages. Additionally, the capital investments associated with these solar projects provide tax revenue to their host communities.
As of June 2024, community solar is present in 44 states and D.C., with a total of approximately 7.87 gigawatts installed, according to the U.S. Department of Energy. Florida, New York, Massachusetts, and Minnesota have cornered the majority of the market.
