Amid changing state rules, community solar is the fastest, most inclusive way to expand clean-energy access nationwide: subscribers earn bill credits from off-site projects, while developers navigate policy variability, and surety bonds help de-risk procurement, construction, and long-term obligations.
In this blog, we will look at who can’t use behind-the-meter rooftop solar and why, how community solar works, which states lead with policy examples, the socioeconomic impacts, and where surety bonds fit.
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What is Community Solar?
Community solar lets households subscribe to an off-site project and earn bill credits (no rooftop installation or homeownership required), expanding access and lowering costs for those who can’t host panels.
How Does Community Solar Help Clean Energy Adoption?
Expanding community solar programs and other shared renewable models is important. These alternatives allow individuals and families to benefit from solar energy without installing systems on their own properties, helping to bridge the equity gap in clean energy adoption.
Community solar projects offer a practical solution to solar access barriers faced by millions of U.S. households. Instead of installing panels on their own homes, participants subscribe to a shared solar array, typically located off-site. In return, they receive credits on their utility bills for the electricity generated, reducing energy costs without upfront investment.
These projects expand access to those historically excluded from behind-the-meter solar, including people living in multifamily housing or shaded areas. Community solar also benefits utilities and developers by enabling economies of scale, simplifying permitting, and facilitating easier maintenance.
Who Lacks Access to Rooftop (Behind-the-Meter) Solar?
According to the National Renewable Energy Laboratory (NREL), approximately 42% of U.S. households are unable to access behind-the-meter (BTM) solar energy systems. BTM solar refers to solar panels installed on the customer’s side of the electric meter, typically on rooftops, allowing homeowners to generate and use their own electricity.
Why Are Homes and Households Excluded from Solar?
Several factors contribute to this limited access. Many homes are unsuitable due to roof conditions, shading from trees or nearby buildings, or structural limitations. Renters often cannot install solar panels because they do not own the property. Additionally, low-income households may face financial barriers such as insufficient credit or limited access to financing options for solar installation.
Why Are States Supporting Community Solar and How?
Many states are now enacting supportive policies to help community solar reach underserved communities, such as bill crediting mechanisms, low-income carve-outs, and inclusive financing. By aligning environmental goals with economic inclusion, community solar can play a central role in ensuring broader access to the benefits of renewable energy.
Examples of States Adopting Community Solar Legislation
Many states have adopted targeted measures to expand community solar and ensure that historically underserved households and businesses can benefit. Here are some prime examples:
- New York has emerged as the national leader, with approximately 2.4 GWac of community solar capacity across approximately 1,200 projects, due to supportive policies dating back to 2015 and the robust NYSun incentive program. This infrastructure now reaches hundreds of thousands of subscribers.
- Maine initiated its program starting in 2011 and now hosts roughly 936 MWac of capacity across more than 2,500 installations.
- Minnesota, which established its policy in 2013, supports about 931 MWac via more than 530 community solar arrays, including the Solar*Rewards program.
- Massachusetts introduced community solar in 2014 and has since reached approximately 900 MWac across roughly 540 projects, aided by programs like SMART.
- Illinois, with its community solar initiative dating back to 2016, now ranks fifth in capacity with 393 MWac across around 196 installations.
- California has invested over $1 billion in low-income and community solar programs since 2007, resulting in 13,365 approved projects and approximately 430 MW of solar capacity either online or underway.
What is the Socioeconomic Impact of Community Solar?
Community solar projects deliver significant socioeconomic benefits, particularly for populations historically excluded from rooftop solar adoption. By enabling renters, low-income households, and those in multifamily housing to subscribe to shared solar arrays, these projects expand access to clean, affordable energy. Participants typically see reduced utility bills, freeing household income for other needs and improving economic stability.
How Does Community Solar Advance Energy Equity?
From an equity perspective, community solar diversifies participation in the clean energy economy. Data from multiple states show subscribers are more likely than traditional rooftop solar adopters to be renters, have lower incomes, and live in multifamily buildings. This broader reach aligns with state and federal goals for inclusive energy transitions.
How Does Community Solar Drive Local Jobs and Construction?
For the construction industry, community solar represents a growing market segment that supports steady project pipelines. These installations require site preparation, electrical work, structural assembly, and ongoing maintenance, creating skilled labor opportunities across trades. Industry studies estimate that every 5 MW of community solar supports nearly 100 local jobs and generates millions in economic activity. As more states adopt enabling policies, community solar will continue to fuel construction sector growth while advancing climate and equity objectives.
How Do Surety Bonds Support Community Solar Projects?
Bid, performance, and payment bonds (and, where required, maintenance/decommissioning bonds) de-risk procurement, guarantee completion, protect subs/suppliers, and back long-term obligations. This helps contractors reach underserved communities.
How Do Bonds Reduce Risk During Procurement and Construction?
- Bid bonds help owners prequalify capable EPCs
- Performance bonds guarantee delivery to contract terms
- Payment bonds protect subcontractors and suppliers, stabilizing pricing and credit on community solar builds.
Are Long-Term or Regulatory Bonds Needed?
Some jurisdictions or land agreements require maintenance/warranty or decommissioning/site-restoration bonds to ensure O&M, removal, and site recovery at end-of-life.
Why Do Bonds Matter to Stakeholders?
Stronger bonding lowers financing and schedule risk for owners, lenders, and developers, building confidence for subscriber programs while aligning with affordability and reliability goals. For grid-scale bonding considerations, read Grid Infrastructure Soars in 2025.
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Frequently Asked Questions
Which bonds are typically required on community solar EPC work?
Expect Bid, Performance, and Payment Bonds per RFP/contract. Some owners/authorities also require Maintenance/Warranty and, in certain jurisdictions, Decommissioning/Site-Restoration Bonds.
How do interconnection milestones affect my bonded schedule?
Utility studies, upgrades, and Permission to Operate (PTO) dates matter. Protect yourself by tying substantial completion to defined interconnection/commissioning milestones and adding time/cost relief for utility-caused delays.
What scopes commonly trip performance claims—and how do we avoid them?
Typical pain points: medium-voltage tie-ins, relay settings, inverter start-up, fencing/access roads, stormwater controls. Mitigate with early utility coordination, vendor start-up calendars, and a commissioning checklist in the baseline schedule.
Do policy or tariff changes trigger change orders?
If policy shifts alter metering, crediting, or interconnection requirements, seek price/schedule relief under change-in-law or owner-driven change clauses. Document impacts with utility notices and revised one-lines.
What early actions reduce my bond risk on community solar?
Lock site control & permits timelines, pre-meet with the utility, order long-lead gear (transformers/switchgear) early, and align acceptance criteria to testable production metrics. Share a milestone pack with your bond agent at NTP and mechanical completion.
