{"id":950,"date":"2025-02-04T06:55:00","date_gmt":"2025-02-04T06:55:00","guid":{"rendered":"https:\/\/aurorasolardev.wpengine.com\/blog\/community-solar-101-the-basics\/"},"modified":"2025-02-05T21:03:39","modified_gmt":"2025-02-05T21:03:39","slug":"community-solar-101-the-basics","status":"publish","type":"post","link":"https:\/\/aurorasolar.com\/blog\/community-solar-101-the-basics\/","title":{"rendered":"Community solar 101 \u2014 the basics"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Table of contents<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#h-how-do-community-solar-farms-work\">How do community solar farms work?<\/a><\/li>\n\n\n\n<li><a href=\"#h-how-do-i-start-a-community-solar-project\">How to start a community solar project?<\/a><\/li>\n\n\n\n<li><a href=\"#h-community-solar-site-selection\">Community solar site selection<\/a><\/li>\n\n\n\n<li><a href=\"#h-project-launch-and-financing\">Project launch and financing<\/a><\/li>\n\n\n\n<li><a href=\"#h-how-does-community-solar-make-money\">How does community solar make money?<\/a><\/li>\n\n\n\n<li><a href=\"#h-community-solar-incentives\">Community solar incentives<\/a>&nbsp;&nbsp;<\/li>\n\n\n\n<li><a href=\"#h-generating-roi\">Generating ROI<\/a>&nbsp;<\/li>\n\n\n\n<li><a href=\"#h-community-pros-cons\">Community solar benefits and challenges<\/a><\/li>\n\n\n\n<li><a href=\"#h-next-steps\">Next steps<\/a>&nbsp;<\/li>\n\n\n\n<li><a href=\"#h-FAQ\">FAQs<\/a><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Despite an up-and-down last couple years, the outlook for solar is still strong. The statistics are mind boggling \u2014 <\/span><a href=\"https:\/\/about.bnef.com\/blog\/solar-10-predictions-for-2022\/\"><span style=\"font-weight: 400;\">pick your stat of choice<\/span><\/a><span style=\"font-weight: 400;\"> \u2014 and anecdotally, just look around. If you\u2019re looking for them, panels seem to pop up everywhere.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">But, even with strong adoption, there will, unfortunately, always be households and businesses that are left out of the rooftop solar market. The estimates vary on the margins, but come in around 50% of households and businesses not being a great fit for rooftop solar. The reasons are largely what you\u2019d expect:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">They don\u2019t own the building (renters)<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">They don\u2019t have enough access to roof space (multi-unit houses, office buildings)<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The roof isn\u2019t big enough, or doesn\u2019t get enough sunlight<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">But, that doesn\u2019t mean that solar is out of reach for those 50%. If you\u2019ve listened to the radio, a podcast, or streaming service at all recently, you\u2019ve likely heard an ad for community solar.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">And it\u2019s more than just a media blitz, it\u2019s a growing way for people who don\u2019t have residential or business access to solar to get involved \u2014 and save some money. In fact, as of the third quarter of 2022, <a href=\"https:\/\/www.seia.org\/initiatives\/community-solar\">more than 5.3 <em>GIGA<\/em>watts of community solar had been installed in the United States<\/a>. All-in-all, 41 states, plus Washington DC, had at least one community solar project online, and 19 states (plus DC) had policies to support it.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">How do you get involved? In this blog series, we\u2019ll look at community solar in-depth, starting with the basics: How does a community solar farm work, how can you get involved, and how do they make money<\/span>?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-community-solar-farms-work\"><span style=\"font-weight: 400;\">How do community solar farms work?<\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.nrel.gov\/state-local-tribal\/community-solar.html\"><span style=\"font-weight: 400;\">NREL defines community solar<\/span><\/a><span style=\"font-weight: 400;\"> as: A distributed solar energy deployment model that allows customers to buy or lease part of a larger, off-site shared solar photovoltaic (PV) system. Developed all over the world, community solar farms are also referred to as <\/span><i><span style=\"font-weight: 400;\">shared solar gardens<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">solar power plants<\/span><\/i><span style=\"font-weight: 400;\">, and many other unofficial titles.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Although some battery-backed off-grid systems exist, most shared solar installations feed the electricity they produce into the local power grid, either as it exists or after it\u2019s improved to accommodate the new energy capacity.&nbsp;<\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/www.aurorasolar.com\/blog\/community-solar-is-essential-to-expanding-the-solar-market-heres-how-it-works\/\"><span style=\"font-weight: 400;\">Community solar farms are an essential way<\/span><\/a><span style=\"font-weight: 400;\"> to provide access to renewable energy for electricity users with circumstances that prevent a feasible PV installation on their property \u2014 as mentioned above, this can include renters and people with roofs that aren\u2019t great for panels.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/aurorasolar.com\/resources\/unlocking-the-power-of-data-revolutionizing-commercial-and-utility-scale-solar\/?aurora_blog_cta=image\"><img decoding=\"async\" width=\"775\" height=\"440\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2.jpg\" alt=\"\" class=\"wp-image-15283\" srcset=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2.jpg 775w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-300x170.jpg 300w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-768x436.jpg 768w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-320x182.jpg 320w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-448x254.jpg 448w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-508x288.jpg 508w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-100x57.jpg 100w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-704x400.jpg 704w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2025\/01\/CI-Power-of-Data-Blog-CTA-2-740x420.jpg 740w\" sizes=\"(max-width: 775px) 100vw, 775px\" \/><\/a><figcaption class=\"wp-element-caption\">Get our free e-book to see how having the right data can help your C&amp;I and utility-scale projects succeed.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-do-i-start-a-community-solar-project\"><span style=\"font-weight: 400;\">How do I start a community solar project?<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">While individual efforts are always commendable, community solar project development can only be accelerated with increased local support. Before starting a new community solar garden of your own, you may want to consider researching and supporting a green energy project nearby that is already operating or in development.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">But, if you want to be involved in the development of a community solar farm, some of the most crucial and time-intensive steps influencing the long-term success of a solar farm are found in the planning stages.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Before getting into the nitty-gritty details, there is one main question that needs to be addressed: Who will be using the electricity produced by the panels? Depending on how you answer this question, a shared solar garden will fall into one of three categories.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/05\/Solar-Opportunity-Zones-Blog-Post-Cover-1024x683.jpg\" alt=\"\" class=\"wp-image-1060\"\/><\/figure>\n\n\n\n<p><b>On-site community solar farms: <\/b><span style=\"font-weight: 400;\">In an on-site solar farm, buildings within a private, designated community share all of the power generated from panels nearby. Often seen in newly developed subdivisions, the energy produced by an on-site solar farm is typically owned by a condominium building or apartment complex and then sold to its residents.\u00a0<\/span><\/p>\n\n\n\n<p><b>Free-market community solar farms: <\/b><span style=\"font-weight: 400;\">Next, free-market community solar farms can generate both green energy and revenue for their developers by selling solar indirectly to consumers. Serving grid-tied homes and buildings, community solar farms can sell or virtually lease portions of their off-site energy production to electricity users in outright sales and purchase power agreements (PPAs). On the free market, solar gardens can also operate on a non-profit model.&nbsp;<\/span><\/p>\n\n\n\n<p><b>Utility direct suppliers:<\/b><span style=\"font-weight: 400;\"> And lastly, some of the world&#8217;s largest solar farms are either owned by or exclusively produce power for utility companies. With installations frequently exceeding 1 MW, utility-scale solar farms allow electric companies to sell renewable power to customers from a fortified green energy portfolio.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-community-solar-site-selection\"><span style=\"font-weight: 400;\">Community solar project site selection<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">There are many factors that solar farm developers must consider when choosing the best project site. A community solar garden must be in a location that receives ample sunlight and is largely free of trees, buildings, and other obstructions that create shade or make it difficult to install a ground-mounted system.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Legally, proposed solar farm locations must adhere to local size, offset, and zoning requirements, as well as any regulations revolving around environmental or historic sites. Solar farm projects are typically permitted for construction on most industrial and agricultural lands, but special use exemptions may be required in some areas.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Community solar farms tend to be much more feasible the closer they are to end consumers. Although the middle of the desert is a great place to produce power, shared solar projects require <\/span><b>nearby infrastructure<\/b><span style=\"font-weight: 400;\"> with the ability to interconnect and distribute the electricity.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">When gaining local approval, most solar farm proposals also require a decommissioning plan for the end of the project&#8217;s life.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/05\/CI-Financing-Blog-Post-Cover-1024x683.jpg\" alt=\"Aerial shot of a solar panels in a parking lot\" class=\"wp-image-1113\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-project-launch-and-financing\"><span style=\"font-weight: 400;\">Project launch and financing<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">After choosing a site and conducting a thorough feasibility analysis, it&#8217;s time to begin acquiring the assets you need to generate and sell community solar power at scale. By and large, site and project development costs account for the majority of a solar farm\u2019s total lifetime expenses.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Beyond the price of the property and land improvement costs, new community solar projects will require funding for <\/span><a href=\"https:\/\/aurorasolar.com\/design-mode\/\"><span style=\"font-weight: 400;\">system design<\/span><\/a><span style=\"font-weight: 400;\">, parts (panels, mounting, wiring, etc.), permitting, construction, and interconnection fees, all before a single kWh of energy is produced.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">So while many hope that \u201cif you build it, they will come,\u201d self-financing a renewable power plant can be very difficult without external support. To generate capital before construction, some community solar developers work with private investors to cover project costs, while others reach out to prospective customers directly with early-stage opportunities to purchase clean electricity at a great rate.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" width=\"640\" height=\"360\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics.jpg\" alt=\"\" class=\"wp-image-14068\" style=\"width:680px;height:416px\" srcset=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics.jpg 640w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics-300x169.jpg 300w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics-320x180.jpg 320w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics-448x252.jpg 448w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics-508x286.jpg 508w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2024\/09\/Solar-panels-farm-agrivoltaics-100x56.jpg 100w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption class=\"wp-element-caption\">A community solar farm doesn&#8217;t <em>have<\/em> to be on an actual farm&#8230;<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\">This brings us to the question we\u2019ve all been waiting for\u2026<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-community-solar-make-money\"><span style=\"font-weight: 400;\">How does community solar make money?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">While traditional farms make money by producing and selling products to people and businesses, the cash flows of a \u201csolar farm\u201d and an orchard are essentially the same.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Substituting rows of crops for arrays of panels, solar farms make money by selling enough of their product (electricity) to recoup and exceed both startup costs and ongoing expenses.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-community-solar-incentives\"><span style=\"font-weight: 400;\">Community Solar Incentives<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Except for the actual sunlight, nothing is free when starting a solar farm. <\/span><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n\n\n\n<p>Thankfully, the Federal <a href=\"https:\/\/www.solarpowerworldonline.com\/2022\/08\/long-term-solar-itc-standalone-storage-direct-pay-inflation-reduction-act\/\">Solar Investment Tax Credit (ITC)<\/a> was granted a long-term extension and additional incentives with the passage of the <a href=\"https:\/\/s3.documentcloud.org\/documents\/22128080\/inflation-reduction-act-of-2022.pdf\">Inflation Reduction Act<\/a>. Solar installations and battery storage get a 30 percent tax credit until step down begins in 2033. (Be sure to check the specifics and whether your project qualifies.) However, tax credits belong solely to the owner of the property where the PV system is installed, an important consideration when crunching the numbers for community solar projects.\u00a0There are <a href=\"https:\/\/aurorasolar.com\/blog\/financial-incentives-for-installing-solar\/\">other incentives<\/a> for getting community solar off the ground, too, including many national, state, and local incentive programs.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Beyond the ITC, developers can find additional grants at the federal level as well as a variety of <\/span><a href=\"https:\/\/www.dsireusa.org\/\"><span style=\"font-weight: 400;\">state solar incentives<\/span><\/a><span style=\"font-weight: 400;\"> across the country. Here, it is important to remember that community solar projects that \u201csell\u201d portions of their property to consumers must make sure that all incentives are allocated correctly.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Also in place to accelerate shared solar development, the Solar Energy Technologies Office of the US Department of Energy recently announced its <\/span><a href=\"https:\/\/www.energy.gov\/articles\/doe-sets-2025-community-solar-target-power-5-million-homes\"><span style=\"font-weight: 400;\">National Community Solar Partnership (NCSP)<\/span><\/a><span style=\"font-weight: 400;\">. Intending to help five million new households access shared solar power by 2025, the NCSP provides personalized consulting and technical hands-on assistance for community solar developers.&nbsp;&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-generating-roi\"><span style=\"font-weight: 400;\">Generating ROI<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">To generate a positive return on investment, community solar farm project developers must make accurate estimates of project costs and solar power production. By knowing exactly how much energy is going to be produced onsite, solar farm owners can then weigh total expenses against a business model aimed at long-term profitability.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Whether allowing customers to \u201cbuy and own\u201d pieces of the farm or signing fixed energy lease agreements, developers can forecast customer cash flows against start-up costs to determine the number of subscribers or quantity of electricity sold necessary to break even with initial expenses.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">And while operational upkeep is typically minimal for small-scale solar energy installations, mid-sized and large solar farms must be prepared for occasional part failures, fixes, and replacements. When calculating long-term ROI, community solar farm developers will also need to factor in <\/span><a href=\"https:\/\/www.nrel.gov\/docs\/fy20osti\/74840.pdf\"><span style=\"font-weight: 400;\">operation and maintenance costs<\/span><\/a><span style=\"font-weight: 400;\">, property tax, sales and use tax, excise tax, and other ongoing expenses.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/05\/Community-Solar-Background-Image-1024x683.jpg\" alt=\"\" class=\"wp-image-1649\"\/><figcaption class=\"wp-element-caption\">The renewable energy future, as pictured in a 16-bit gaming system.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-community-solar-benefits-and-challenges\">Community solar benefits and challenges<\/h3>\n\n\n\n<p>Community solar makes solar possible for many situations where it was previously a non-starter. It also has drawbacks, of course. Here are some of the common benefits and challenges of community solar.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Benefits<\/h4>\n\n\n\n<p><strong>Solar power for everyone:<\/strong> Community solar allows communities to access solar power, albeit in a distributed way, where it otherwise may not have been a great fit.&nbsp;<\/p>\n\n\n\n<p><strong>Defrayed costs:<\/strong> Community solar distributes the upfront cost of installing solar among multiple households and stakeholders. Community solar means a community effort. The costs for installing and maintaining a community solar garden are absorbed either through co-owning neighbors, purchase power agreements (PPAs), virtual leases, or utility bills from an energy company.<\/p>\n\n\n\n<p><strong>Community solar is flexible:<\/strong> Unlike owning your own PV system, most community solar customers have the option of backing out of purchasing solar power with little to no penalties and fees. Many community solar customers have the option of purchasing from either the solar project, the grid, or a combination of both, providing unparalleled flexibility.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Challenges<\/h4>\n\n\n\n<p><strong>Community solar projects take up space:<\/strong> Community solar is usually implemented when rooftops don\u2019t pass muster for solar. At best, community solar farms can be installed on unusable land, such as landfills or brownfield sites, or serve a dual-use function such as agriculture or gardening. At worst, community solar may require previously undisturbed or valuable land to be cleared, resulting in potential environmental and economic losses.<\/p>\n\n\n\n<p><strong>Community solar customers can\u2019t access incentives:<\/strong> The majority of community solar models are rental- or subscription-based, meaning the solar customer doesn&#8217;t actually own the panels. Most incentives, most notably being the ITC, are only available to the owner of the piece of land where the solar farm is installed, meaning that customers can\u2019t access incentives or rebates directly. However, co-ownership models might allow shareholding customers access to some rebates and incentives.&nbsp;<\/p>\n\n\n\n<p><strong>Community solar projects might not be available everywhere:<\/strong> In some states, installing a community solar farm and selling remote electricity to customers may be a challenge. And even if a state is friendly toward community solar, the fact remains that not every community has the space needed for a large solar installation.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-next-steps\"><span style=\"font-weight: 400;\">Next steps<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Solar farms provide a valuable and necessary service: providing access to renewable energy to a variety of electricity users. Today, most successful solar farms are a result of careful planning in which developers choose a feasible location, accurately forecast energy production, and follow a sustainable business model.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In our next installment, <a href=\"https:\/\/www.aurorasolar.com\/blog\/community-solar-is-essential-to-expanding-the-solar-market-heres-how-it-works\/\">Community Solar 101 \u2014 How It Works<\/a>, we look at some more specifics around community solar, including specific ownership models and potential complexities. In the meantime, for even more information on community solar farm basics, we recommend the NREL\u2019s <\/span><a href=\"https:\/\/www.nrel.gov\/docs\/fy11osti\/49930.pdf\"><span style=\"font-weight: 400;\">detailed look<\/span><\/a><span style=\"font-weight: 400;\"> at the subject, as well as <\/span><a href=\"https:\/\/www.energy.gov\/eere\/solar\/community-solar-basics\"><span style=\"font-weight: 400;\">this resource<\/span><\/a><span style=\"font-weight: 400;\"> from the US Department of Energy.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/aurorasolar.com\/resources\/the-ultimate-commercial-solar-bundle\/?aurora_blog_cta=image\"><img decoding=\"async\" width=\"714\" height=\"395\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA.jpg\" alt=\"Aerial view of a commercial building with rooftop solar panels at twilight\" class=\"wp-image-7267\" srcset=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA.jpg 714w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA-300x166.jpg 300w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA-320x177.jpg 320w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA-448x248.jpg 448w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA-508x281.jpg 508w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2019\/12\/Commerical-Solar-Bundle-CTA-100x55.jpg 100w\" sizes=\"(max-width: 714px) 100vw, 714px\" \/><\/a><figcaption class=\"wp-element-caption\">Want to learn more? Get our free Commercial Solar Bundle to get more information.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-faqs\">FAQs<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">What is a solar farm?<\/h4>\n\n\n\n<p>A solar farm is a distributed solar energy model that allows customers to buy or lease part of a larger, off-site shared PV system. Community solar farms are also referred to as <em>shared solar gardens<\/em>, <em>solar power plants<\/em>, and many other unofficial titles, and models may include rentals, power purchase agreements (PPAs), or co-ownership.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Are solar farms profitable?<\/h4>\n\n\n\n<p>Yes. A traditional <a href=\"https:\/\/levcapital.com\/blog\/financing\/solar-farm-return-on-investment\/\">solar farm<\/a> has a 10 to 20 percent return on investment, and typically pays itself off within 10 years, meaning 30 years or more of pure profit earning potential after the solar farm cost is paid off.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What are the different community solar business models?<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Utility: <\/strong>Customers purchase electricity from a utility or other third party owning the installation. In most cases, community members own a share of the installation, and receive a credit on their bills corresponding to their share size.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>On-site: <\/strong>Buildings within a private, designated community share all of the power generated from panels nearby. Often seen in newly developed subdivisions, the energy produced by an on-site solar farm is typically owned by a condominium building or apartment complex and then sold to its residents.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Free-market community solar farms: <\/strong>Free-market community solar farms sell solar indirectly to consumers. Serving grid-tied homes and buildings, community solar farms can sell or virtually lease portions of their off-site energy production to electricity users in outright sales and purchase power agreements (PPAs). On the free market, solar gardens can also operate on a non-profit model.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Want to learn more? <a href=\"https:\/\/www.aurorasolar.com\/public-demo\/?aurora_blog_cta=inline-text\">Schedule a personalized, no-pressure demo<\/a> to get all <em>your<\/em> specific questions answered.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><em>Featured image by <a href=\"https:\/\/unsplash.com\/@johnmcclane?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Andres Siimon<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of contents Despite an up-and-down last couple years, the outlook for solar is still strong. The statistics are mind boggling \u2014 pick your stat of choice \u2014 and anecdotally, just look around. If you\u2019re looking for them, panels seem to pop up everywhere. But, even with strong adoption, there will, unfortunately, always be households [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2120,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"post_topic":[11,60],"class_list":["post-950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.4 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Community Solar 101 \u2014 The Basics | Aurora Solar<\/title>\n<meta name=\"description\" content=\"Explore how community solar makes renewable energy accessible to renters and businesses without rooftop panels. 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