Community Solar Programs by State Guide

Community Solar Programs by State Guide
Photo by Naassom Azevedo / Unsplash

What Are Community Solar Programs?

Community solar connects you to local solar farms without requiring rooftop installations. You subscribe to a portion of the energy produced and receive credits on your monthly utility bill.

These programs make solar accessible to everyone. Renters benefit just as much as homeowners. People with unsuitable roofs can still participate in renewable energy.

Most programs require no upfront costs. You simply pay for the energy credits you receive, often at a discount compared to standard utility rates.

States Leading the Solar Revolution

Twenty-two states plus Washington D.C. have active community solar programs by state legislation. Each state structures its program differently, affecting costs, savings, and availability.

New York leads the nation with over 1,000 megawatts of community solar capacity. Minnesota follows closely, pioneering the model back in 2013. Massachusetts, Illinois, and Colorado round out the top five states for program participation.

Northeast Region Opportunities

New York's program offers 5-10% savings on electricity bills. No credit checks or long-term contracts required.

Massachusetts provides solar credits through its SMART program. Participants typically save $100-200 annually.

Maine's community solar market expanded rapidly after 2019 legislation. Subscribers can save up to 15% on electricity costs.

Midwest Solar Access

Minnesota guarantees bill credit rates for 25 years. This stability helps households budget energy costs long-term.

Illinois allocates specific capacity for low-income residents. These subscribers receive additional savings through state incentives.

Wisconsin recently launched pilot programs in select utilities. Early participants report 8-12% savings.

How to Join Your Local Program

Start by checking your utility company's website for approved solar farms. Many states maintain online marketplaces listing available projects.

Compare subscription offers carefully. Look at contract length, cancellation fees, and projected savings. Some programs offer month-to-month options while others require annual commitments.

Review your past twelve months of electricity usage. This helps determine the right subscription size for maximum savings.

Key Questions Before Signing Up

What happens if you move? Most programs allow transfers within the same utility territory. Some even permit cancellation without penalties.

How are credits calculated? Fixed discount models provide predictable savings. Value stack crediting varies based on market rates.

Are there size limitations? Many states cap subscriptions at 120% of your annual usage to prevent oversizing.

Financial Benefits and Savings Potential

Community solar programs by state typically deliver 5-15% savings on electricity costs. A household spending $150 monthly could save $90-270 annually.

Low-income qualified subscribers often receive enhanced benefits. Some states offer 20-50% discounts through dedicated programs.

Tax benefits vary by location. While subscribers don't receive federal solar tax credits, some states offer additional incentives.

Calculating Your Potential Savings

Multiply your annual electricity cost by the program's discount rate. A $1,800 annual bill with 10% savings equals $180 back in your pocket.

Factor in any subscription fees. Some programs charge small monthly administrative costs that reduce overall savings.

Consider rate escalation protection. Fixed discount programs shield you from utility rate increases over time.

Environmental Impact of Shared Solar

Each megawatt of community solar prevents approximately 1,500 tons of carbon emissions annually. That equals removing 300 cars from the road.

Your participation supports local renewable energy development. Projects create jobs and increase grid resilience.

Community solar farms often incorporate pollinator-friendly plantings. These installations benefit local ecosystems beyond energy production.

Future Expansion and Emerging Markets

Several states are developing community solar programs by state mandate. Michigan, Pennsylvania, and North Carolina have pending legislation.

Federal support through the Inflation Reduction Act accelerates program development. New incentives make projects viable in previously underserved markets.

Virtual net metering technology enables broader geographic participation. Subscribers may soon access projects across wider service territories.

What This Means for You

More competition drives better subscriber terms. Expect improved savings and flexible contract options as markets mature.

Rural communities gain increased access through cooperative utilities. These member-owned organizations prioritize local benefits.

Storage integration enhances program value. Battery systems provide backup power benefits alongside bill savings.

Take Action Today

Check your state's public utilities commission website for approved community solar providers. Compare multiple offers to find the best match for your energy needs and budget goals.