Not every homeowner can go rooftop solar — shaded roofs, HOA restrictions, or renting make it impossible for millions of households. Community solar is the alternative. Here's how they compare.
How Community Solar Works
Community solar (also called shared solar or solar gardens) lets you subscribe to a portion of a larger solar installation — typically on a commercial rooftop or open field. Your share generates credits that are applied to your utility bill. You don't need a suitable roof, you can participate as a renter, and the installation risk is shared.
The Key Differences
Rooftop solar pros: Full 30% federal tax credit, maximum per-kWh savings (at retail rate), increases home value, no monthly subscription fee, 25-year ownership
Community solar pros: No installation, works for renters and shaded roofs, no upfront cost (typically), easily cancellable, no roof warranty concerns
Community solar cons: You don't own the panels (no tax credit), savings are smaller (typically 5–15% off your utility bill vs. 50–100% offset with rooftop), project availability is limited by state
The Tax Credit Difference
The most important financial distinction: community solar subscribers do not receive the 30% federal tax credit — only solar system owners do. This significantly changes the long-term ROI comparison for homeowners with suitable roofs.
State-by-State Community Solar Availability
Community solar is available in approximately 20 states, with the strongest programs in Massachusetts, New York, Illinois, Minnesota, and Colorado. Some states have waitlists; others have open enrollment.
The Bottom Line
If you own your home and have a usable roof, rooftop solar delivers superior long-term ROI — especially with the 30% federal credit. Community solar is the right choice for renters, shaded/complex roofs, or homeowners who prefer no upfront commitment.