Community solar is one of the fastest-growing segments of the U.S. clean energy market. Shared solar programs expand access to renewable power for households, small businesses, and institutions that cannot install panels on their own rooftops—making community solar a compelling opportunity for developers and infrastructure investors alike.
How community solar works
A community solar project is a shared array, typically 1–5 MW, located in a participating utility territory. Subscribers receive bill credits proportional to their share of the project's output, reducing electricity costs without any on-site equipment.
Key benefits for subscribers:
- No upfront cost: subscription models require no capital outlay
- No maintenance: the project owner handles operations
- Portability: credits follow the subscriber within the utility territory
- Savings: typical discounts of 10–15% on electricity bills
Market momentum
The U.S. community solar market passed 10 GW of cumulative installed capacity in late 2025, and 24 states plus the District of Columbia now have enabling legislation—most with provisions for low- and moderate-income households. The development pipeline exceeds 8 GW, with new state programs under consideration in Ohio, Iowa, Pennsylvania, and Michigan. For developers and investors, community solar offers:
- Diversified offtake across many small subscribers
- Recurring revenue with low single-subscriber concentration risk
- State-level policy support, even as federal incentives tighten
The policy environment demands attention: with the federal ITC phasing out for solar, developers are racing to satisfy beginning-of-construction and placed-in-service deadlines for existing pipelines, and future state program design will need to work without a federal credit.
Community solar complements commercial and industrial (C&I) solar by serving residential and small-business customers who lack suitable rooftops.
Sunlight's role
Sunlight Energy Investments finances, develops, and operates community solar projects across participating U.S. markets. We bring institutional-grade underwriting and long-term asset management to projects that expand clean energy access in the communities we serve.
Developers with late-stage community solar projects seeking equity partners can explore our developer program. Investors looking for exposure to this growing segment can learn about our investment approach or contact our team.