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: 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, 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 No Longer Tips the Scale
Rooftop solar owners used to get a 30% federal tax credit that community solar subscribers didn't. That credit ended for systems installed after December 31, 2025, which narrows the gap between the two options.
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 usually still delivers better long-term returns, though paybacks are longer without the federal credit. Community solar is the right choice for renters, shaded/complex roofs, or homeowners who prefer no upfront commitment.