What are the downsides of community solar?
Community solar has meaningful limitations in terms of financial returns, geographic availability, and compatibility with on-site systems.
While community solar offers an accessible entry point to renewable energy, it comes with several trade-offs. Financial benefits are typically lower than a PPA or all-cash on-site system because the developer retains certain tax incentives. Your bill credits are capped at your subscription amount and contract term. Community solar is not available everywhere — only some states have regulatory frameworks that support it. If your building has a single utility meter, you may not be able to simultaneously subscribe to community solar and install an on-site system. Most subscriptions require a 10–25 year commitment, locking in your energy price for that period.
Before committing, assess whether community solar's lower financial return is offset by its simplicity and accessibility for your situation.