Community solar has become one of the fastest-growing segments of the US solar market, offering solar access to households and businesses that cannot install rooftop solar directly. Renters, condominium residents, homeowners with unsuitable rooftops, and small businesses can subscribe to a share of a community solar project’s output and receive bill credits from their utility. For solar EPCs, developers, and installers, community solar creates a distinct project category with its own design considerations, permit workflows, subscriber management dimensions, and state program requirements. This guide walks through community solar design fundamentals and how it differs from behind-the-meter rooftop.
What is community solar?
Community solar (sometimes called shared solar or community distributed generation) refers to a solar project whose output is allocated among multiple off-taker subscribers rather than serving a single behind-the-meter customer. The physical solar project is typically located separately from the subscribers, often on commercial rooftops, brownfields, capped landfills, agricultural land, or dedicated parcels, and interconnected to the local distribution utility.
Subscribers do not physically consume the solar electricity generated by their allocated share. Instead, they receive bill credits from their utility based on their share of the project’s monthly output, offsetting a portion of their electricity bill. Structures for subscription (ownership shares, monthly subscription fees, discount-off-bill models) vary by state program and developer.
States with active community solar programs
Not every US state has a functioning community solar market. Community solar requires enabling legislation and utility program implementation. States with active or growing community solar activity include:
- New York: substantial community solar market operating under VDER compensation structure across multiple utility territories
- Massachusetts: community solar operates under the SMART program with dedicated capacity blocks
- Illinois: Illinois Shines includes community solar categories with structured allocation processes
- Minnesota: established community solar garden program administered through Xcel Energy and others
- Colorado: community solar under Xcel Energy and other utilities
- New Jersey: community solar under the Successor Solar Incentive (SuSI) program
- Virginia: Shared Solar Program serving specific utility territories
- Maryland: community solar under Maryland Energy Administration programs
- Washington DC: community solar under Solar for All and other structures
- Oregon, Rhode Island, Connecticut, Maine, and others: various community solar frameworks in operation
Additional states have enacted legislation and are in various stages of program implementation. Always check current program status with the state agency administering community solar in the target market.
Community solar design considerations
Community solar projects share many technical elements with commercial solar but have important differences:
System sizing to state program limits
Each state community solar program has capacity limits per project (often ranging from 1 MW to 5 MW or higher depending on program). System size is designed to state program maximums or to available site capacity, whichever is smaller.
Site siting
Community solar projects are commonly sited on:
- Commercial or industrial rooftops (multi-tenant, warehouses, distribution centers)
- Capped landfills and brownfields
- Agricultural land (with agrivoltaics considerations increasingly common)
- Parking canopies
- Dedicated ground-mount parcels
Site selection considers program eligibility, utility interconnection capacity on local distribution feeders, subscriber acquisition geography (some programs require subscribers to be in the same utility territory or geographic zone), and land or roof lease economics.
Interconnection design
Community solar interconnects to the distribution utility grid, typically at the primary voltage level for larger projects. The interconnection point is often a utility feeder or substation rather than a single building service. Interconnection studies for community solar projects are more involved than behind-the-meter rooftop, and interconnection queues can be lengthy in high-demand markets.
Metering configuration
Community solar requires specific metering configurations to accurately measure project output for bill credit allocation to subscribers. The utility installs revenue-grade metering and processes monthly generation data. Plan sets and interconnection paperwork must specify the correct meter configuration for the applicable program.
Compliance with program-specific requirements
Each state program has specific technical, procurement, and documentation requirements. Some programs require domestic content, prevailing wage compliance, minority-owned business participation, or geographic subscriber allocation. Design and project documentation must support these requirements.
Subscriber management (typically not the EPC’s job)
Subscriber acquisition, management, billing, and customer service for community solar projects are typically handled by the project developer or a specialized subscriber management company, not the solar EPC or design firm. However, EPCs and designers should understand the subscriber model for the specific project because it affects:
- System size decisions (to ensure sufficient output to serve committed subscribers)
- Interconnection application timing (subscribers cannot receive credits until the project is operational)
- Reporting requirements ongoing after PTO
Common community solar design challenges
- Interconnection queue delays: in high-demand markets, interconnection studies and queue position can add significant timeline
- Feeder capacity constraints: local distribution feeders may not have capacity for the desired project size, requiring downsizing or costly utility upgrades
- Program requirement complexity: multiple state agencies, utility programs, and stakeholder approvals
- Landowner and rooftop lease negotiations: site control on commercial rooftops or private land can be lengthy
- Site-specific structural conditions: older commercial rooftops may require reinforcement or roof replacement before solar installation
Community solar interconnection timelines (general)
- Feasibility and pre-development: several months to a year
- Interconnection application through study to agreement: typically 6-18 months depending on utility and queue depth
- Program registration and approval: several months in parallel with interconnection
- Design, permit, and construction: several months after interconnection agreement
- Subscriber acquisition and program launch: weeks to months
Total community solar project timelines from concept to operation typically span 18-36 months depending on state and utility conditions.
Where outsourced solar design fits into community solar
Community solar project design combines commercial-scale rooftop or ground-mount design with program-specific documentation and interconnection engineering. Solar EPCs and community solar developers benefit from outsourced design partners with community solar experience across multiple states because the design and documentation patterns are consistent even as state program specifics vary.
RIH Engineering provides outsourced solar PV design for community solar developers and EPCs operating across US community solar markets. Our plan sets, interconnection application packages, and program documentation support the full community solar project lifecycle. If you want to talk through how outsourced design fits your community solar pipeline, get in touch.
Frequently asked questions
What is community solar?
Community solar is a solar project whose output is allocated to multiple off-taker subscribers rather than serving a single behind-the-meter customer. Subscribers receive bill credits from their utility based on their share of the project's monthly output, offsetting part of their electricity bill. This model provides solar access to renters, condo residents, and others who cannot install rooftop solar.
Which US states have active community solar programs?
States with active or growing community solar markets include New York, Massachusetts, Illinois, Minnesota, Colorado, New Jersey, Virginia, Maryland, Washington DC, Oregon, Rhode Island, Connecticut, and Maine. Program structures and requirements vary by state. Additional states are in various stages of implementation.
How are community solar systems sized?
Community solar system sizes are typically limited by state program caps (often 1 MW to 5 MW or higher depending on program), available site capacity, and utility distribution feeder interconnection capacity. Systems are designed to state program maximums or site capacity, whichever is smaller.
Who handles community solar subscriber management?
Subscriber acquisition, management, billing, and customer service for community solar projects are typically handled by the project developer or a specialized subscriber management company, not the solar EPC or design firm. However, EPCs and designers should understand the subscriber model because it affects sizing and interconnection timing.
How long does a community solar project take from concept to operation?
Community solar projects typically take 18-36 months from concept to operation, depending on state and utility conditions. This includes feasibility, interconnection studies and queue position, program registration, design and permitting, construction, subscriber acquisition, and utility permission to operate.