Community Solar is simple in theory. A local solar farm generates electricity, you subscribe to a share, and you get credits on your utility bill.
The 90-Second Summary
Community Solar works in four steps:
- A solar farm is built in your utility territory.
- You subscribe to a share of that farm's output.
- The farm sends electricity to the grid, not your house.
- Your utility credits your bill for your share's production. You pay the subscription manager at a 5-20% discount, depending your state and utility, and pocket the difference as savings.
Step 1: A Solar Farm Is Built in Your Utility Territory
A developer builds a solar project in your utility service area. Often on:
- Capped landfills
- Warehouse or commercial rooftops
- Rural fields or brownfield sites
- Carports over parking lots
Project Size and Subscriber Capacity
Most state programs cap projects at 1-5 MW. A 2 MW project can serve 300-500 households.
Who Builds and Owns Them
Solar developers like Altus Power. The operator handles maintenance, insurance, and regulatory compliance for the 25-30 year project lifespan.
Step 2: You Subscribe to a Share
How Share Size Is Determined
Your share is sized to match your typical annual electricity consumption. A household using 10,000 kWh/year would get a share producing ~10,000 kWh/year.
What You Pay to Subscribe
Zero upfront. The subscription manager makes money on the spread between utility credit rate and what they charge.
Step 3: The Farm Generates Electricity and the Grid Absorbs It
The solar farm sends electricity onto the utility grid. You do not receive any physical electricity from the farm. Your home continues to draw from the grid. Community Solar is an accounting mechanism, not a physical routing of electricity.
How Production Is Tracked
The utility installs metering on the solar project. Production is measured monthly, combined with subscriber share data to calculate each subscriber's credit.
Why the Grid Accepts the Electricity
Solar farms are grid-connected generators. They sell electricity into the grid at wholesale rates. The electricity flows to whichever nearby customer is drawing power.
Step 4: Your Utility Credits Your Bill
This is where Community Solar turns into actual savings. The mechanic is called virtual net metering.
The Credit Calculation
Each month, your utility converts your share's production into a bill credit at the utility's retail rate or state-set tariff.
Example
Let's say your share produces clean energy and you are given a solar credit of $160.
What You Pay the Subscription Manager
You pay the subscription manager for that $160 value at a discounted rate — a 10% discount on a $160 credit means you owe $144.
Your Net Savings
Your utility company credits you $160. You pay subscription manager $144.
Your net savings = $16.
Over a year, that’s roughly $200.
See how Community Solar credits work for detailed billing example.
Why Utilities Participate
Because state legislatures passed laws requiring utilities to administer Community Solar programs. Utilities also benefit: Community Solar helps them hit renewable energy requirements and reduces peak electricity purchases from fossil fuel generators.
How Community Solar Differs From Other Solar
Versus Rooftop Solar:
Rooftop: physically generates at your home, higher lifetime savings ($30K-$80K over 25 years). Nearly 80% of U.S. households are ineligible for rooftop solar.
Community: no physical installation, lower per-subscriber savings but much broader eligibility.
Versus Utility-Scale Solar:
Utility-scale projects (100+ MW) sell directly to utilities. Subscribers have no direct relationship.
Versus Green Power Programs:
Green power programs are voluntary premium contributions. Community Solar is the opposite: you pay less, not more.
Real Example: Albany Subscriber
Subscriber: Two-bedroom apartment in Albany, NY. NYSEG customer.
Enrollment: NY CDG program, 10% discount.
Monthly Savings: Customer receives a monthly credit of about $100. Sometimes higher, sometimes lower depending on the season. After their discount, that leaves them with about $10 off their monthly bill.
Net annual savings: ~$120
Over 10 years: ~$1,200 saved with zero upfront investment.
Frequently Asked Questions
How long does it take to start seeing credits?
2-3 billing cycles after signup.
Do I receive two bills or one?
It depends on your state and utility provider. Many markets are transitioning to consolidated billing, resulting in net savings coming directly off the total amount due each bill period. In markets with dual billing, subscribers receive two bills: 1) their regular utility bill (with solar credit) and 2) a separate subscription invoice for the credit at their discounted rate. Combined, the total amount is less than the old single utility bill.
Can I turn my subscription on and off?
Most programs allow cancellation anytime with no fee. With Altus Power Community Solar, there is no fee to cancel or pause your subscription.
Does the weather affect my credit?
Yes, seasonal fluctuation is normal as less electricity is generated on shorter, cloudy, or overcast days. On the flipside, solar farms tend to generate more electricity in the summertime.
What if the solar farm has a problem?
The operator is responsible for maintenance. If the project goes offline, your credits would stop until the issue is repaired. But don’t worry — your electricity service would not be interrupted.
Can I add Community Solar to my existing rooftop solar?
Usually no. Most state programs don't allow stacking. If you have questions specific to your situation, we’re here to help — email us any time at hello@altuspower.com.
Your Next Step
For billing details, see how Community Solar credits work.
Community Solar is one of the simplest ways to benefit from solar energy in 2026. No installation, no equipment, no maintenance. Just a credit on the bill you already pay.
Altus Power is one of the largest owners and operators of commercial-scale solar in the United States, with 1.3+ GW of operating solar across 30 states and Washington DC. One of the pioneers of Community Solar, Altus serves more than 40,000 subscribers across 9 states including New York. Learn more about Altus Power or explore our Community Solar FAQ.
Interested in getting started with Community Solar?
Reduce your electricity costs and help your community go green with Community Solar.

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