Community Solar vs. Rooftop Solar: Which Is Right for You? 

Solar energy is one of the best, most cost-effective ways to generate clean energy and reduce your carbon footprint. With the ever-expanding renewable energy sector, there are now two distinct methods that one can choose from to generate solar energy based on their individual needs. These systems are rooftop and community solar. For solar energy newbies, defining the two can be difficult. Which one is better? Does one save you more money? Is one more practical?

Below are overviews of rooftop solar and community solar, along with the pros and cons of each so you can decide which option best fits your solar energy needs.

Community Solar

Community solar is a program that grants individuals access to solar energy through a monthly subscription to a solar farm project. It provides them with solar credits that help them save them money on their electric bills. 

Pros

• Community solar provides widespread access to solar energy: subscribing to a community solar project makes solar accessible to individuals or organizations that either cannot afford solar panels OR do not have the adequate infrastructure to install their own panels.
• Community Solar can give you immediate savings: thanks to a monthly discount of 10-25% for a subscription to a community solar project, you can start saving as soon as you sign up. The solar credits you receive from the project (relative to your subscription amount) are deducted from your monthly utility bills, allowing you to benefit from major electric savings over time.
• Community solar features innovative microgrid technology: solar farms’ smart grid technology enhance their durability. Many solar farms are also working towards battery storage, which will make them a more durable option, allowing them to withstand power outages and major climate events.
• Community solar prioritizes consumer well-being: community solar programs are subject to rigorous safety regulations to ensure their effectiveness and reliability. They also include consumer protections to guarantee savings for subscribers.

Cons

• You technically still pay for electricity: Despite the 10-25% savings on your subscription, you still pay for 75-90% of your energy needs. The lack of tax incentives means you don’t save as much as you would if you were a homeowner investing in their own rooftop system. Basically, switching to community solar is like renting a home but from a better landlord. In the end, owning a home (or your own small power plant in this case) is better for you financially in the long run!

• Proximity to a solar farm is needed: to benefit from community solar, your home or business needs to be located in close proximity to a solar farm. This can be tricky as solar farms require a lot of space and resources, so they can be quite sparse.

Rooftop Solar

Rooftop solar is a solar energy system consisting of solar panels installed on a roof, utilizing photovoltaic technology to absorb sunlight and convert it into power.

Pros

• Rooftop solar helps you benefit from tax credits: if you have installed or will install your solar panels between 2022 and 2032, you could benefit from a federal tax credit of 30% on your installation costs. Some states offer additional incentives and rebate options. For example in New Jersey, solar customers can benefit from ‘net metering’, an incentive that gives them credits for any excess solar energy that is produced by their panels and sent to the local grid.
• Rooftop solar gives you ownership over your electric energy: installing your own rooftop solar panels means that you own your solar power completely, making you less dependent on the main utility grid and any operational issues it might face.

• Rooftop solar benefits the economy: rooftop solar contributes greatly to the fast growth in solar energy jobs. According to the Bureau of Labor Statistics, solar photovoltaic installer is one of the most rapidly increasing occupations to look out for over the next decade, highlighting the growing potential of this industry.
• Rooftop solar provides major financial gains for homeowners: rooftop solar panels can significantly boost a home’s value, making it much easier to sell in the future. In addition, most homeowners who use rooftop solar save up to $1,500 in electric costs each year.
• Rooftop solar has the potential to scale solar access across the U.S: according to the National Renewable Energy Lab, with about 3.3 million new homes expected to be built or renovated each year, approximately 30 gigawatts of solar power could be generated. This could bring a massive push towards advancing clean energy goals in America.

Cons

• Roof infrastructure plays a role: according to NREL, around 50% of households and businesses cannot support solar panels. This can be caused by renting instead of owning, roofs with poor lighting due to tree cover, or other structural inadequacies that would make it difficult to install and benefit from solar panels.

• High initial costs: between the costs of labor, the panels themselves, and the batteries, on average a consumer will pay between $2-$3 per watt of rooftop solar. For example, a typical rooftop installation in New Jersey costs a bit more than $25,000. 
• Rooftop solar is dependent on weather conditions: for maximum energy generation, panels should be installed on south-facing roofs with direct sunlight exposure, with a slope between 15 and 40 degrees. If your roof doesn’t fit these criteria, the solar energy you’re able to produce will likely be reduced.

So which one is right for you?

Well…It really depends on you and what you need. 

Community solar and rooftop solar are both great options to start reaping the benefits of solar energy. Even though they share similar benefits, including reduced carbon emissions and long term savings for consumers, they each have distinct characteristics that may or may not work for your circumstances. While community solar might work best for apartment renters and businesses, rooftop can be particularly attractive to homeowners.

At the end of the day, it is up to you to assess your individual needs and decide which solar system could bring you the most value.