A community solar project, farm or garden is a solar power installation that accepts capital from and provides output credit and tax benefits to multiple customers, including individuals, businesses, nonprofits, and other investors. Participants typically invest in or subscribe to a certain kW capacity or kWh generation of remote electrical production.[2] The project's power output is credited to investors or subscribers in proportion to their investment, with adjustments to reflect ongoing changes in capacity, technology, costs and electricity rates. Community solar benefits renters, homeowners and business owners who don’t own their own homes, don’t have a suitable roof orientation for solar or who can’t afford the upfront costs of solar.[3] Community solar provides direct access to the renewable energy to customers who cannot install it themselves.[4] Companies, cooperatives, governments or non-profits operate the systems.[5]
As of 2024, there were 44 U.S. states with at least one community solar project.[6] Only 18 states and Washington D.C. have policies and programs that encourage community solar's growth.[4]
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