Pros and Cons of Community Solar (2026)

Bird's eye view of someone using community solar panels on their home.

Community solar is worth it for most subscribers in states where it’s available. There’s no upfront cost, no roof required, and bill credits reduce your electricity charges every month. But, like any energy decision, there are trade-offs that are worth understanding before signing up.

Maybe you’ve thought about going solar for a while to save on your electricity bill, but don’t want to deal with installing photovoltaic solar panels. Or perhaps you are a big solar advocate looking to reduce your carbon footprint, but you’re currently renting a property.

Whatever your goal, whether that is to save money, support clean energy, or both, you might be curious to know how community solar programs work, what the pros and cons are, and if any incentives and energy credits are available.

Downsides of Community Solar

Before you sign up, you’ll want to take the time to understand where community solar is still falling a bit short. Availability, eligibility, and how credits are structured all vary, and a few of these trade-offs may be worth weighing.

#1 Not Available In Every State

First and foremost, the most significant barrier you’ll run into with community solar programs is that they aren’t available in every state. So far, community solar projects are located in 39 states, plus Washington, D.C., and only 22 states, plus Washington, D.C., have policies that support community solar.

State-level support continues to expand as more utilities and legislatures adopt community solar policies, so availability is likely to keep growing even without a federal incentive driving it.

#2 Not Eligible for Solar Rebates and Tax Credits

As of January 1, 2026, under the One Big Beautiful Bill Act, the residential Investment Tax Credit (Section 25D) expired for homeowner-purchased rooftop systems, so neither community solar nor owned rooftop solar qualifies for a federal residential credit in 2026. State-level incentives still vary by location, so check DSIRE or energy.gov to see what’s available where you live.

However, the advantages listed below might make up for that, especially for renters looking for a way to support solar projects or homeowners who don’t want to spend thousands of dollars on upfront energy costs.

#3 Contract Terms Require Commitment

Most community solar subscriptions involve a multi-year agreement. Clearway’s standard agreement is 20 years, which provides long-term price stability but means you need to be aware of the cancellation terms before signing.

Clearway now offers a cancel-anytime option in some markets. Or, if you move within the same utility service territory, the subscription can typically transfer.

Review the details in our frequently asked questions.

#4 Bill Credits Vary By Season

Solar generation is higher in summer than winter, so utility bill credits will be larger in sunny months and smaller in cloudy ones. The savings model is designed to average out over the year, so it’s worth evaluating your savings annually rather than month to month.

Advantages of Community Solar

None of those cons are dealbreakers for most subscribers, and there’s a good reason why. Community solar’s biggest advantages come down to cost, accessibility, and convenience.

#1 No Upfront Costs

One of the biggest draws to community solar is that property owners don’t have to deal with a 3rd party’s upfront costs and installation logistics for their home solar system. Instead, you get all the benefits of solar power by subscribing to an offsite solar array.

A typical residential rooftop solar system in 2026 costs between $15,000 and $46,000 before any incentives are applied, depending on the type of panels selected, labor costs, and which tax credits you’re eligible for. It can take anywhere from 10 to 30 years for that investment to pay for itself through home-energy generation.

But with community solar programs, there typically are no upfront investments from customers to start the solar project and build the solar array.

#2 Save Money With Solar Bill Credits

By opting for the subscription model and joining an off-site or remote solar system program, customers get energy bill credits through their local utility for energy generation from the community solar project. This is one of the greatest benefits of community solar, and it’s called virtual net metering. Virtual net metering is an important aspect of community solar programs and how customers can save money by subscribing to a solar farm.

#3 Available To Renters

Renters are largely locked out of rooftop solar. They don’t own the roof and can’t permit an installation. Community solar is designed for exactly this group.

As long as you have a utility account in a state with an active program, like Illinois, Massachusetts, Minnesota, or New York, you can subscribe, and there’s no landlord permission required.

#4 No Maintenance Responsibility

Clearway builds, owns, and maintains every shared solar farm. Subscribers don’t have to worry about receiving a maintenance bill, never need to schedule an inspection, and are never responsible for storm damage or equipment failure.

#5 Reduce Your Carbon Footprint

Burning fossil fuels for energy production and transportation is causing rampant climate change and has many other negative environmental impacts and human health issues. By spending money on and supporting clean and renewable energy sources, you help pave the way to a better future for our planet and future generations. This is true regardless of whether you choose to install solar panels directly on your property or if you decide to sign up for a community solar project such as Clearway Community Solar.

Is Community Solar Worth It?

For renters, the answer is almost always yes. Community solar gives you access to clean energy and bill credits with no roof, no upfront cost, and no landlord approval needed.

For homeowners with a roof that qualifies for solar, the comparison comes down to whether the ownership benefits and potential long-term savings of a rooftop system outweigh the $0 upfront cost and zero-maintenance convenience of community solar.

One factor that no longer tips the scales in favor of going with rooftop solar is that as of 2026, neither community solar subscribers nor homeowners purchasing rooftop solar qualify for a federal residential tax credit.

Want to see the full breakdown? Read our comparison of community solar vs. rooftop solar, or use our savings calculator to get a personalized estimate.