Does California Have Community Solar Laws?

Yes, California has enacted several laws and policies to support community solar projects. Whether due to cost, homeownership status, or roof suitability, millions of Californians cannot opt for residential solar and can only join the solar revolution through community solar. California has a few policies to help this solar adoption option democratize access to clean energy. Key legislative and regulatory frameworks encouraging community solar installation in the state include:

1. SB 43 – Green Tariff Shared Renewables (GTSR) Program (2013)

• Allowed utility customers to receive 50–100% of their electricity from renewable sources
• Included two components: Green Tariff (GT) and Enhanced Community Renewables (ECR)
• Faced challenges due to high administrative costs and limited bill savings

2. AB 2316 – Community Renewable Energy Program (2022)

• Directed the California Public Utilities Commission (CPUC) to create a new community solar program
• Introduced the Net Value Billing Tariff (NVBT)
• Requires projects to include at least 4 hours of battery storage
• Mandates that 51% of project capacity be allocated to low-income households, the highest carve-out in the U.S

3. AB 2838 – Electrical Corporations: Green Tariff Shared Renewables Program

• Required CPUC to evaluate existing community solar programs and determine whether they meet goals for equity, efficiency, and participation
• Authorized termination or modification of underperforming programs

To make community solar appealing to low-income households, California’s community solar policies made these robust provisions for low-income participation:

• DAC Green Tariff: Offers a 20% bill discount to income-qualified customers in disadvantaged communities (DACs).
• Community Solar Green Tariff: Similar to DAC-GT but tied to local solar projects organized by nonprofits or local governments.
• SASH/MASH/SOMAH Programs: Provide upfront rebates and technical assistance for solar installations on affordable housing.

What Is Community Solar?

Community solar is a shared solar energy system that allows multiple participants to benefit from a centralized solar array. Instead of installing panels on their own property, subscribers receive credits on their utility bills for the electricity generated by their share of the solar farm.

When Is Community Solar a Good Option?

• You rent your home or live in a multi-unit building
• Your roof is shaded or structurally unsuitable for solar panels
• You want to avoid the upfront cost of residential solar
• You prefer a flexible, low-maintenance energy solution

Advantages Over Residential Solar

Why Community Solar?

While the energy needs of California residents vary widely, the desire for cleaner, more affordable electricity is nearly universal. Yet for many, traditional solar solutions remain out of reach. Rooftop solar, while effective, often requires homeownership, a suitable roof, and a significant upfront investment. That leaves out millions of Californians, including renters, low-income families, and those living in shaded or multi-unit buildings, who want to participate in the clean energy transition but face structural barriers.

Community solar offers a way forward. It’s a model built on inclusion, designed to extend the benefits of solar power to those who’ve historically been left behind. By subscribing to a portion of a shared solar array, participants can reduce their electricity bills and carbon footprint without installing panels on their property. This flexibility makes community solar especially attractive in urban areas, where space is limited and housing is often rented.

But the appeal goes beyond convenience. Community solar empowers individuals to take part in California’s climate goals, contributing to a cleaner grid while enjoying predictable energy costs. It also strengthens local economies by creating jobs in construction, maintenance, and administration. Many of these new solar jobs are tied to prevailing wage requirements under the state’s legislation. For businesses, it offers a chance to demonstrate environmental leadership while managing operational expenses. For renters and homeowners alike, it’s a chance to be part of something bigger: a statewide movement toward energy equity and sustainability.

In summary, community solar is a solution tailored to California’s unique challenges. It bridges the gap between ambition and access, making clean energy a shared resource rather than a private privilege. And as more projects come online, it’s becoming one of the most powerful tools for democratizing energy in the Golden State.

Are There Community Solar Projects in California?

Yes. As of 2024, California has approximately 160 MW of community solar capacity online. Here are five largest community solar projects in the state:

• Sheep Creek Community Solar Farm – 3 MW (SCE territory)
• RB Inyokern Solar WDAT 1203 – 19.8 MW (expected Q4 2024)
• RB Inyokern Solar WDAT 1281 – 12 MW (expected Q4 2024)
• Corral Solar Project (BMT Corral LLC) – 3 MW (expected Q1 2026)
• Santa Rosa Band of Cahuilla Indians Project – 994 kW (completed 2021)

Any resident of California can join a community solar project in the state as long as they have an electric bill. However, eligibility varies by utility and program. To sign up to a California community solar farm”

• Visit shared solar aggregator platforms like EnergySage’s Community Solar Marketplace.
• Enter your ZIP code to find available projects
• Review project details and subscription terms
• Submit your utility account info and finalize your subscription
• Receive bill credits once the project goes live

How Does Community Solar Work in California?

In California, community solar operates through a web of shared power generation, utility coordination, and policy-driven incentives. At its heart is a simple premise: residents subscribe to a portion of a centralized solar array, often located miles away, and receive credits on their electricity bills for the energy their share produces. This model is especially powerful in a state where rooftop solar is not feasible for millions due to rental status, shaded roofs, or financial constraints.

The electricity generated by these solar farms is fed directly into the utility grid. Through a mechanism known as virtual net energy metering (VNEM), subscribers receive proportional credits based on their share of the output. These credits offset their monthly utility bills, even though the energy doesn’t physically flow to their homes. VNEM was first piloted under California’s Multifamily Affordable Solar Housing (MASH) program and later expanded to broader applications, including community solar. In 2023, the California Public Utilities Commission (CPUC) introduced the Net Value Billing Tariff (NVBT), a more dynamic successor to VNEM that incorporates time-of-use rates and mandates battery storage for new projects. This shift ensures that solar energy can be dispatched during peak demand hours, enhancing grid reliability and maximizing value.

Each community solar project in California is unique in its operations and framework. In San Bernardino County, the Sheep Creek Community Solar Farm, developed in partnership with Southern California Edison (SCE), serves as a model for rural deployment. This 3.8 MW project allows local residents to subscribe and benefit from solar energy without installing panels. In Riverside County, solar generation includes both photovoltaic and thermal technologies, with utility-scale projects feeding into the grid managed by SCE and the Imperial Irrigation District. These counties demonstrate how community solar can thrive in areas with abundant land and strong solar irradiance.

Meanwhile, in urban centers like Los Angeles County, community solar faces different challenges. Dense housing and limited open space make rooftop installations difficult, but programs like the Community Solar Green Tariff (CSGT) offer a solution. Administered by utilities such as Los Angeles Department of Water and Power (LADWP), CSGT enables local governments and nonprofits to sponsor solar projects that provide bill discounts to low-income residents. These projects are often sited on public buildings or brownfields, turning underutilized spaces into sources of clean energy.

In Northern California, Pacific Gas & Electric (PG&E) has supported community solar through pilot programs and tariff-based models. For example, in Sonoma County, local initiatives have partnered with PG&E to develop solar arrays that serve disadvantaged communities under the DAC Green Tariff. These programs offer a 20% bill discount and require no upfront investment from participants, making solar accessible to those who need it most.

Community solar also benefits from federal and state incentives. The federal Investment Tax Credit (ITC) provides a 30% tax credit for solar-plus-storage installations, significantly reducing development costs. California’s SOMAH program offers additional rebates for solar on multifamily affordable housing, while AB 2316 mandates that at least 51% of community solar capacity be allocated to low-income subscribers. These layered incentives ensure that community solar is also a tool for equity and inclusion.

Ultimately, community solar in California is a dynamic system shaped by geography, utility infrastructure, and policy innovation. Whether in the sun-drenched deserts of Riverside County or the dense neighborhoods of Los Angeles, it offers a flexible, scalable way to bring clean energy to everyone. As more projects come online and new tariffs take effect, community solar is poised to become a cornerstone of California’s energy future.

How Much Does Community Solar Cost in California?

The cost of community solar in California is determined by location, utility policies, program design, and income-based incentives. Unlike traditional rooftop solar, which often requires a substantial upfront investment, community solar is designed to be more accessible, especially for renters and low-income households. But affordability varies widely depending on where you live and which utility serves your area.

In general, most community solar subscribers in California can expect to save between 5% and 10% annually on their electricity bills. These savings are delivered through bill credits, which are calculated based on the energy produced by a subscriber’s share of the solar farm. However, the actual subscription cost and the structure of those savings differ significantly across the state.

For example, in Los Angeles County, where the Los Angeles Department of Water and Power (LADWP) operates, community solar projects sponsored by local nonprofits under the Community Solar Green Tariff (CSGT) offer guaranteed bill discounts to income-qualified residents. These projects typically require no upfront payment and provide a fixed monthly credit, making them especially attractive in neighborhoods like South LA and Pacoima, where rooftop solar adoption has lagged due to structural and financial barriers.

In San Diego, where San Diego Gas & Electric (SDG&E) serves as the primary utility, community solar costs are influenced by the region’s high retail electricity rates. While this means that bill credits can be more valuable, it also places pressure on developers to keep subscription fees low. Projects in the area often bundle solar with battery storage to qualify for enhanced compensation under the state’s Net Value Billing Tariff (NVBT), which rewards energy delivered during peak demand hours. This structure helps maximize savings for subscribers, even if the base subscription cost is slightly higher.

Further north, in Sonoma County, Pacific Gas & Electric (PG&E) has supported community solar through pilot programs that target disadvantaged communities. Here, the DAC Green Tariff offers a 20% discount to eligible participants, with no enrollment fees or long-term contracts. The cost of participation is effectively zero for qualifying households, thanks to state subsidies and federal tax credits that offset development expenses.

In rural areas like San Bernardino County, where land is more readily available, community solar farms such as the Sheep Creek project offer competitive pricing due to lower construction and permitting costs. These projects are often developed in partnership with Southern California Edison (SCE) and provide flexible subscription models that allow residents to choose how much energy they want to offset. While the monthly cost might range from $10 to $50 depending on usage, subscribers typically see net savings over time, especially as retail electricity prices continue to rise.

It’s also worth noting that California’s community solar programs are increasingly designed to guarantee bill savings rather than simply offer access. Under the proposed Assembly Bill 1260, new community solar projects must demonstrate cost-effectiveness and ensure that subscribers, particularly low-income households, see measurable financial benefits. This shift reflects a broader policy goal to make clean energy not just available, but economically viable for all Californians.

Ultimately, the cost of community solar in California is less about a fixed price tag and more about the value proposition. Whether you’re in a dense urban neighborhood or a sprawling rural community, the model is built to deliver savings, stability, and sustainability. Finally, as more projects come online under the new regulatory framework, the financial case for community solar is becoming stronger than ever.