Community Solar sounds like a free lunch. You sign up online, receive a solar discount of 5-20% on your electricity bill, pay nothing upfront, and cancel anytime. Most things that sound too good to be true are not legitimate. This one is, and it has been for almost two decades.
The Short Answer
Yes, Community Solar is legitimate. It is a state-regulated cost-savings energy program that lets you subscribe to a share of a local solar project and receive credits on your utility bill.
Specifically, Community Solar is:
- Established in state law. The first program launched in Massachusetts in 2006. 23 states plus DC have active programs today.
- Regulated by state public utility commissions.
- Billed through your existing utility. Community Solar is not a third-party energy supplier. Your existing utility company does not change, and you never pay a third-party billing company for your electricity.
- Used by hundreds of thousands of households. There is currently over 7GW of operating Community Solar capacity across the U.S.
Why Community Solar Is Legitimate
1. It Is Enabled by State Legislation
Every state with an active Community Solar program passed a law creating it. Here are a few examples:
- New York: NY-Sun Community Distributed Generation program
- New Jersey: Community Solar Energy Program (pilot 2018, permanent 2023)
Massachusetts: SMART program, established in 2018
- Maryland: Community Solar Pilot Program, permanent under House Bill 908 in 2023
- Illinois: Illinois Shines, backed by the Illinois Power Agency Act
2. It Is Regulated by State Public Utility Commissions
State PUCs set rules governing:
- Which projects can operate
- How credits are calculated
- Maximum subscriber fees and discount requirements
- How enrollment disputes are resolved
- Required disclosures
3. Credits Appear on Your Regular Utility Bill
Community Solar does not introduce a new third-party supplier relationship. Your existing utility continues to supply your electricity and bill you for that electricity. Community Solar credits appear as line items on that same bill.
4. It Has Been Operating for Almost 20 Years
The first Community Solar project in the U.S. launched in Massachusetts in 2006. Minnesota launched "Community Solar Gardens" in 2013, the template for most later state programs.
How to Verify a Specific Provider or Developer Is Legitimate
1. They Operate in Your State With a Named Program
For example, "We operate projects under the NY-Sun Community Distributed Generation program."
2. They Apply Credits Through Your Existing Utility
If a Community Solar provider proposes replacing your utility or supplying your energy directly, it is not Community Solar. With Community Solar, solar credits are applied directly to your bill through your existing electricity company.
3. No Upfront Cost or Enrollment Fee
A legitimate Community Solar provider will never ask you to pay any upfront fees to join or apply to join the program.
4. Transparent Discount Disclosure
Look for language like, "10% guaranteed savings on the portion of your bill offset by credits." Community Solar discounts typically range from 5-20%
5. Month-to-Month or Short-Term Contract
With a legitimate Community Solar program, you can cancel any time for any reason — no strings attached.
6. Clear Terms on Billing and Credits
- When your subscription starts
- How credits appear on your bill
- When your first subscription invoice arrives
- How the discount is calculated
7. Utility-Verified Eligibility
Community Solar programs cross check with utility companies to confirm eligibility.
8. Known Company With a Physical Operation
Check for:
- State PUC registration
- Track record of operating projects
Common Concerns About Community Solar
"What Is the Catch?"
There is no “catch” and no “gotcha” moments with Community Solar, but here are some things to keep in mind:
- You do not own the panels. No federal solar tax credit.
- Savings are modest. 10-20% discount is typical, depending your state and utility.
- Availability depends on your state and utility.
- Project quality varies.
"How Do I Know the Credits Will Actually Appear?"
Because your utility calculates and applies the credits. You can verify that credits were applied on your first post-activation bill.
"Is My Data Safe?"
Enrolling requires sharing your utility account number and authorizing the subscription manager to receive usage data. For more information, be sure to read the provider’s Terms & Conditions and Privacy Policy.
"What If I Cancel?"
With month-to-month subscriptions, you request to cancel, and credits stop appearing on your bill after 2-3 billing cycles. Then, you return to paying your full utility bill without solar savings.
How Altus Power Operates
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 assets across 30 states and Washington, DC. Altus Power serves more than 40,000 Community Solar subscribers across nine states.
For Community Solar subscribers:
- We own the solar projects we enroll subscribers into.
- Our enrollment uses utility-verified eligibility checks.
- Credits flow through your utility's standard process.
- Subscriber terms include month-to-month enrollment, no upfront cost, and standard state-program discount structures.
Frequently Asked Questions
Is Community Solar a real program or just a marketing gimmick?
It is a real program built into utility operations and backed by state law.
Can Community Solar ruin my utility service?
No, your utility relationship does not change.
How do I report a bad Community Solar provider?
You can report bad actors to your state public utility commission, SEIA, and state attorney general's consumer protection division.
Do any government agencies endorse Community Solar?
The U.S. Department of Energy operates the Community Solar Partnership, NREL provides technical resources, and state energy offices administer the programs.
Your Next Step
To understand the billing mechanics, read how Community Solar credits and billing work.
To check whether a project is available in your area, check your eligibility here.
Interested in getting started with Community Solar?
Reduce your electricity costs and help your community go green with Community Solar.
