Operations

Community Solar and Community Choice Aggregation Explained

How community solar and community choice aggregation work. Who benefits, how programmes are structured, and where they are growing.

Not every household can put solar on the roof. Community solar and community choice aggregation extend clean energy access to renters, apartment dwellers, and communities that want more control over their energy supply. This guide covers both.

What community solar is

Community solar is a shared solar installation whose output is credited to subscribers who cannot host solar on their own roof. Subscribers pay for a share and receive utility bill credits for their portion of solar generation. Sometimes called shared solar or solar gardens.

What community choice aggregation is

Community choice aggregation (CCA) lets local governments aggregate electricity purchasing for their residents, typically to source cleaner power than default utility. Utility still delivers electricity; CCA sources it. Common in California, Illinois, Massachusetts, New Jersey, New York, Ohio, Rhode Island, Virginia.

Community solar models

ModelHow it works
OwnershipSubscribers own share of solar array
SubscriptionMonthly fee for solar output credits
Utility ownedUtility owns array; customers buy blocks
Green pricingUtility programme with renewable premium
Non profitNonprofit organisation manages

Who benefits from community solar

  • Renters (cannot install rooftop solar).
  • Apartment dwellers (no roof access).
  • Homeowners with unsuitable roofs (shaded, wrong orientation).
  • Homeowners without upfront capital.
  • Consumers who prefer subscription simplicity.
  • Low income households (in inclusive programmes).

Typical benefits

5 to 15%
typical bill savings vs utility default
USD 0 upfront
for subscription models
Renewable
electricity source

Community solar scale

US community solar installed capacity approximately 7 GW. Growing rapidly. Leading states: Minnesota, New York, Massachusetts, Illinois, California, Colorado, Maryland. Federal Community Solar Subscription Platform being developed.

How CCA works

  1. Local government (city, county, or region) opts in.
  2. CCA agency established or joined.
  3. Residents automatically enrolled with opt out option.
  4. CCA procures electricity from generators.
  5. Utility still delivers electricity and reads meters.
  6. Bill shows CCA supply charge plus utility delivery.
  7. CCA can target specific fuel mix (higher renewable share).

CCA scale

StateCCA status
CaliforniaOver 12 million customers served by CCAs
IllinoisMultiple regional aggregations
MassachusettsWidespread municipal programmes
New JerseyGrowing programme
New YorkExpanding
OhioLegacy programme
Key insight. California CCAs now serve more customers than the largest investor owned utilities in some regions. This has fundamentally changed the utility landscape. CCA has enabled municipalities to target 100 percent renewable procurement much faster than incumbent utilities could offer.

Notable CCAs

  • MCE Clean Energy (Marin, California) - first US CCA.
  • Peninsula Clean Energy.
  • Sonoma Clean Power.
  • East Bay Community Energy (now Ava Community Energy).
  • CleanPowerSF.
  • Silicon Valley Clean Energy.
  • City of Cincinnati Aggregation.

Regulatory context

CCA requires enabling state legislation. Enabled states have specific rules for opt out, cost allocation, renewable procurement, and exit fees. Utility opposition common but regulatory support growing.

Green tariffs

Alternative to CCA: utility green tariff programmes where customers pay premium for renewable procurement. Common at investor owned utilities. Less flexibility than CCA but no legislative requirement.

Contemporary challenges

Common trap. CCA exit fees and cost allocation from incumbent utilities have been contentious. Utilities argue CCA departures leave stranded assets to be paid by remaining customers. CCAs argue exit fees are punitive. State regulators mediate but process ongoing.

Low income access

Growing focus on low income community solar programmes. Some state mandates require low income participation minimums. Utility bill credits reduce energy burden.

Actual cost savings

Community solar typically saves subscribers 5 to 15 percent versus utility default. Depends on state incentives, subscription structure, and utility rates. CCA savings variable, sometimes negligible after fees.

How to join

ProgrammeHow to join
Community solarSubscribe through subscription platform
CCAAutomatic if your city has joined
Green tariffContact utility
Utility community solarBuy blocks or subscribe

Where community energy is going

  • Continued community solar programme expansion.
  • More states enabling CCA.
  • Growing low income programme requirements.
  • Community owned models expanding.
  • Integration with battery storage.
  • Bill credit standardisation.
  • Utility green tariff expansion.

Frequently asked questions

What is community solar?

Shared solar array whose output is credited to subscribers.

What is CCA?

Local government aggregating electricity purchasing for residents.

Can renters access clean energy?

Yes via community solar or CCA.

How much do I save?

Typically 5 to 15 percent with community solar.

Is CCA opt in or opt out?

Usually opt out. Residents automatically enrolled.

Can I leave CCA?

Yes but exit fees may apply.

Do I still get utility service?

Yes for delivery. CCA sources electricity only.

Where can I read more?

Solar Energy Industries Association, LEAN Energy US, Coalition for Community Solar Access.

Does community solar require investment?

Subscription models require no upfront capital.

How do I know if my area has CCA?

Check state agency or local government website.

Summary

Community solar extends solar access to renters and apartment dwellers through shared subscription. CCA lets local governments aggregate electricity purchasing to source cleaner power. Both models scaling rapidly, especially in California and select other states. Enable clean energy access without rooftop or utility switching. Watch for state enabling legislation and utility opposition dynamics.

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