- Community solar is a subscription to a share of a solar farm; you get bill credits, often 5-15% off your electricity supply cost.
- It needs no equipment or upfront cost, but availability depends on your state and utility.
- Plug-in solar needs upfront money but can save more over its life at a good site.
- You can often do both.
In this article
Side by side
| Plug-in solar | Community solar | |
|---|---|---|
| Upfront cost | $400-1,500 | Usually $0 |
| Savings | $80-300/year depending on site | Typically 5-15% discount on credited power |
| Equipment | On your balcony/yard | None |
| Contract | None | Subscription terms; check cancellation |
| Availability | States/countries with plug-in rules | States with community solar programs |
| Moves with you | Yes, if legal at new home | Sometimes, within the same utility |
Example
A household paying $1,200 a year for electricity subscribes to community solar at a 10% discount: roughly $120 a year saved with no investment. An 800 W plug-in kit at a good site might save $120-190 a year after a $900 purchase. Over 10 years, the kit could come out ahead at a sunny, high-price site; at a poor site, community solar wins.
Doing both
Community solar credits are usually sized to your historical consumption. A plug-in kit reduces what you draw from the grid, which may reduce the credits you can use in future sizing. Check the subscription terms. Many renters use a plug-in kit for daytime baseload and community solar for the rest.
Next: plug-in vs rooftop solar.
How community solar works
A developer builds a solar farm and sells subscriptions to local households. Your share of the farm’s output earns credits on your utility bill, usually at a discount to what you would pay otherwise. Some programs require no upfront payment and allow cancellation with notice; others have longer contracts or fees. Availability depends on state legislation; states such as New York, Minnesota, Massachusetts, Maryland, New Jersey and Illinois have active programs.
A 10-year comparison with realistic numbers
Take a household in New Jersey with a $1,500 yearly electricity bill, of which about $900 is the supply portion that community solar credits typically offset.
| Community solar (10% discount) | 800 W plug-in kit | |
|---|---|---|
| Upfront cost | $0 | $900 |
| Yearly saving | ~$90 | ~$120 (vertical, south, 25 cents per kWh) |
| 10-year saving | ~$900 | ~$1,200 minus the $900 kit = ~$300 net, plus the kit still working |
| After 10 years | Subscription continues | Kit keeps producing for another decade or more |
Illustrative; community solar discounts and contract terms vary by program and state. Your utility bill shows which charges are credited.
Over ten years, community solar wins on net cash for a vertical balcony kit; over twenty years, the kit usually pulls ahead because its cost is paid once. At a sunny, tilted site with high prices, the kit wins sooner.
Questions to ask before signing a community solar contract
- What is the discount, and is it fixed or tied to the utility rate?
- Which charges does the credit apply to (supply only, or also delivery)?
- Is there a cancellation fee, and what happens if you move within or outside the utility’s area?
- How is your share sized, and is it reviewed if your consumption drops after adding a plug-in kit?
The U.S. Department of Energy’s community solar pages explain how programs work and why they were designed for renters and households without suitable roofs.
Frequently asked questions
Is community solar available to renters?
Yes, that is one of its main purposes.
Can I cancel if I move?
Many programs allow transfers within the same utility territory or cancellation with notice. Read the contract terms before signing.
Which is better for the environment?
Both add solar generation. Community solar farms are more efficient per panel; plug-in kits use space that would otherwise be empty.
Sources
- Community solar, U.S. Department of Energy.
- Electricity rates by state (EIA data, June 2026), Choose Energy.
Sources checked in September 2026. Laws, prices and product details change; if you spot something out of date, tell us.