California Solar Rule 21: How Homeowners Can Upgrade Their Solar Systems Without Losing NEM 2.0
March 27, 2026Community Solar vs. Rooftop Solar: Which is Better?
Interest in solar energy continues to grow, even as the industry faces setbacks in the form of policy changes and shifting incentives at the national level. As technology advances and the demand for clean energy increases, solar is no longer limited to traditional rooftop installations.
One of the newer and increasingly talked-about options is community solar. This model expands access to solar energy beyond those who own homes with suitable roofs. With its growing popularity and availability, there are now scenarios where it may not only be feasible, but also may be the smarter choice.
What is Community Solar?
Put simply, community solar is a subscription to a shared solar farm. Instead of installing a system on your own roof, you sign up to receive credits from a portion of a shared solar project in your area.
As opposed to rooftop solar, there is no need for installation or maintenance – simply subscribe through a utility or third-party provider and receive credits on your electricity bill based on your share of the system’s production.
It is important to note that community solar does not directly power your home. Instead, you receive credits on your bill for energy generated at a solar farm and sent to the grid.
How Does Community Solar Work?
To participate in community solar, you first need to find a solar farm in your utility area. These solar farms feed electricity to your local grid.
When you subscribe, you are assigned a portion of that system’s output. Your utility then tracks how much energy your share produces and applies a corresponding credit to your electricity bill.
You will still need to make payments to both the utility company and the solar provider. However, the credits that are applied to your electricity bill still end up leading to higher overall savings.
Community Solar vs. Rooftop Solar
In contrast to community solar, residential rooftop solar refers to a system installed directly on the roof of your home, allowing you to generate your own electricity. These systems can be purchased outright, financed, or leased, and are often paired with battery storage for backup power and to maximize energy and savings.
Here’s how community solar and rooftop solar compare across key factors:
Ownership
- Community solar operates as a subscription service, so you do not own any equipment.
- Rooftop solar is something you can own (or lease), giving you long-term control over your energy system.
Savings
Community solar offers modest savings when compared to rooftop solar.
Rooftop solar typically provides significantly higher financial savings and can even offset your electricity bill by 100%.
Upfront Cost
Community solar has very little upfront cost beyond a subscription fee.
Rooftop solar requires a much higher upfront investment, though financing and leasing options can help reduce these costs.
Control
Community solar offers little to no control over energy production.
Rooftop solar gives you full control, especially when paired with a battery that allows you to store and maximize your energy production.
Home Value
Community solar does not affect the value of your home.
Rooftop solar can increase home value and make it more attractive to buyers in the future.
Does Community Solar Save Money?
Yes, community solar can save you money. It just won’t save you as much as traditional rooftop solar.
On average, community solar participants save roughly 5-15% on their monthly electricity bills. In contrast, rooftop solar systems can offset a great portion of your bill. In some cases, it can offset it entirely.
While savings are more limited with community solar, it still provides a way to reduce energy costs without the commitment and upfront financial investment of installing a rooftop system.
Who is Community Solar Best For?
While community solar doesn’t offer the savings of rooftop solar, it still offers meaningful benefits, namely modest savings and a reduced carbon footprint. As such, it is still a great option for many people, including:
- Renters
- Homeowners without viable rooftops, due to shading, orientation, or structural issues.
- Anyone looking for a low-commitment, low upfront cost way to support renewable energy.
Who is Rooftop Solar Best For?
If you are a homeowner with a viable roof looking for maximum savings and energy independence, then residential rooftop solar is still your best bet. Rooftop solar offers much higher savings and more control over your energy when compared to community solar. When paired with battery storage, it can also provide backup power and protect from rising utility rates.
Community solar remains a strong option for those who can’t install rooftop solar at home. But if you’re able to install a system at home, it’s still the best option available.
Go Solar with Solar Discovery
Not sure which option is best for you? Get in touch with us and we’ll walk you through the decision-making process. Solar Discovery offers all-in-one energy solutions, offering solar, battery, and roofing services, to help homeowners take control of their power. Whether you’re installing a new solar panel system, adding battery storage, or designing a complete clean energy strategy, we’ve got you covered.
