In this guide
Short answer: community solar is better if you have no sunny spot, your state has a program and you want zero equipment: it typically saves 5 to 15% on the credited part of your bill. Plug-in solar is better if you have a sunny balcony, your state allows it and you want something you own and take with you. Many renters can do both.
How each works
Community solar: a developer builds a solar farm and sells subscriptions. Each month the utility credits your bill for your share of its output, and you pay the developer slightly less than the credit. You save the difference. There's nothing to install, so your landlord isn't involved.
Plug-in solar: you buy a small kit, set it on your balcony or patio and plug it into an outlet. Your home uses its power directly, so you buy less from the grid. See what is plug-in solar?
Side by side
| Community solar | Plug-in solar | |
|---|---|---|
| Upfront cost | Usually $0 | $600 to $2,000 |
| Typical savings | 5–15% of credited bill | $60–$300 a year |
| Needs sun at home | No | Yes |
| Needs landlord OK | No | Usually, for outside mounting |
| Availability | States with programs | States with a plug-in law |
| Contract | Yes; check cancellation terms | No |
| Moving | Transfer or cancel | Take it with you |
| Ownership | No equipment | You own it |
A worked example
A renter in a high-price state pays $1,200 a year for electricity. A community solar subscription covering most of the bill at a 10% discount saves about $100 to $120 a year, with no upfront cost. An 800 W plug-in kit on a south-facing balcony could save $150 to $250 a year in the same state, but costs $800 to $1,200 first. Over five years the kit comes out ahead; over one year, community solar does. Doing both, savings add up.
Where each is available
- Community solar: the U.S. Department of Energy counted 24 states and D.C. with community solar legislation as of August 2024. New York, Massachusetts, Minnesota and Florida hold most of the capacity; Illinois, Maryland, New Jersey, Colorado and Maine also have large programs.
- Plug-in solar: in force or signed in 10 states as of October 22, 2026. See the 50-state map.
Read the community solar contract
- Discount: a fixed percentage off the credit value is simpler than a fixed price per kWh.
- Cancellation: look for no fee, or a short notice period.
- Moving: can you transfer within the same utility area?
- Escalators: avoid prices that rise every year faster than utility rates.
- Credit check and minimum term: many programs have neither, which is better.
For the plug-in side, start with balcony solar for renters and the landlord request letter.
Frequently asked questions
What is community solar?
A shared solar farm in your utility's area. You subscribe to a share of its output and get credits on your electric bill, usually paying the developer a bit less than the credits are worth. Nothing is installed at your home.
How much does community solar save?
Usually 5 to 15% on the credited portion of your bill, and up to about 20% or more in some low-income programs. There's no upfront cost in most residential offers.
Can I have both community solar and plug-in solar?
Usually yes, since community solar is a bill credit and plug-in solar reduces what you draw from the grid. Check your subscription contract for any minimum-usage terms.
Is community solar available in my state?
According to the U.S. Department of Energy, 24 states and D.C. had enacted community solar legislation as of August 2024, and projects operate in more. Florida, New York, Massachusetts and Minnesota hold most of the capacity.
Update log
- Guide published.
Sources and official texts