Homeowners Guide: Community Solar vs. Owning Your Own System

Solar energy is a smart way to lower energy costs and reduce reliance on fossil fuels, but not every homeowner has the same needs when considering solar options. Two of the most common ways to access solar energy are community solar programs and owning your own solar system. While both offer benefits, there are key differences that homeowners should consider before making a decision.

This guide walks you through the pros and cons of each approach, helping you determine the best fit for your home and long-term energy savings.

What is Community Solar?

Community solar programs allow homeowners to subscribe to a shared solar farm rather than installing panels on their own property. These large-scale solar arrays feed electricity into the grid, and participants receive energy credits on their utility bills based on their share of the power generated.

Pros of Community Solar

• No Upfront Costs: Homeowners can subscribe with little to no upfront investment, making solar accessible without a large financial commitment.
• No Roof Requirements: No need to worry about roof condition, shading, or orientation issues.
• Lower Utility Bills: Subscribers typically save 5-20% on electricity costs through energy credits.
• No Maintenance Required: Since you don’t own the system, there are no installation or upkeep concerns.

Cons of Community Solar

• Smaller Savings Compared to Ownership: Homeowners with their own system can offset 20-100% of their electricity costs.
• No Tax Incentives: Community solar subscribers do not qualify for the 30% Federal Solar Tax Credit or other state incentives unless they purchase a share of the solar farm.
• No Battery Storage: Unlike a personal system, community solar does not allow integration with a solar battery for backup power.
• Limited Availability: Programs are not available in all areas and may have waitlists.

What About Owning Your Own Solar System?

Installing solar panels on your home is the most effective way to maximize savings, increase home value, and achieve energy independence.

Pros of Owning a Solar System

• Maximized Savings: A home solar system can offset up to 100% of electricity costs, making it the most cost-effective long-term solution.
• Eligible for Tax Incentives: Homeowners qualify for the 30% Federal Solar Tax Credit and potential state/local incentives, reducing installation costs.
• Battery Storage for Backup Power: Owning a system allows you to integrate a solar battery, keeping your home powered during outages.
• Increases Home Value: Solar panels can raise property value and improve resale potential.
• Full Energy Independence: You control your power source without relying on third-party programs.

Cons of Owning a Solar System

• Upfront Investment: Requires an initial financial commitment, though financing options are available.
• Roof Requirements: Not all roofs are suitable due to shading, age, or structural issues.
• Maintenance Responsibility: Minimal maintenance is required, but homeowners are responsible for system upkeep.

Comparing the Two Options

Which Solar Option is Right for You?

If you want lower energy bills with no upfront costs and don’t mind a smaller financial return, community solar could be a good option.

If you want to maximize long-term savings, gain energy independence, and increase home value, owning your own solar system is the better choice.

If energy security is important to you and you want backup power during outages, owning a solar system with battery storage is the only way to achieve that goal.

Get a Free Solar Estimate for Your Home

At Solar Energy World, we help homeowners determine the best solar solution based on their energy needs and home specifications. If you’re considering solar, our experts can provide a personalized estimate to show you how much you can save by installing your own solar system.

Get a Free Solar Estimate Today and take the first step toward energy savings and independence!