Community Solar Savings Calculator

Monthly savings, total contract value, and year-by-year breakdown for your community solar subscription.

$
¢/kWh
%
kW
years
%
$
Monthly savings
$15/month
Annual savings$180
Total gross savings (20 yr)$3,963
Net savings after fees$3,963
Effective rate12.60¢/kWh
Monthly usage1,071 kWh
Community solar (this plan)$4,500 saved
Rooftop solar (buy system)$20,500 net gain
Extra cost doing nothing+$20,627
YearAnnual savingsCumulative
Year 1$180$180
Year 5$187$918
Year 10$197$1,883
Year 15$207$2,897
Year 20$217$3,963
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How to Use This Calculator

Enter your current electricity bill

Start with your average monthly electricity bill and your utility's current rate in cents per kWh. Your bill should be on your utility statement — or check your utility's website for the tariff rate. The US average is about 14¢/kWh in 2026, but rates vary from 9¢ in Louisiana to 30¢+ in Hawaii and California.

Enter your community solar subscription terms

The discount percentage is what your provider offers off your utility rate — typically 5-15% for market-rate programs, up to 20-25% for low-income programs. The subscription size in kW is your allocated share of the community solar project, usually sized to cover 50-100% of your monthly usage. Your provider will quote both figures in the contract.

Review contract length and escalator

Most community solar contracts are 20-25 years. The escalator clause determines how the credit rate changes each year — 0% means your discount stays fixed while utility rates rise (your savings grow over time); 1-2% means your credit rate grows by that percentage annually. Read this clause carefully — it directly impacts long-term value.

Check cancellation terms

Some programs allow free cancellation if you move; others charge a flat fee of $250-$1,000. Enter any cancellation fee to see its impact on net savings. If you move, most providers let you transfer your subscription or cancel it — confirm this before signing.

The Formula

Monthly Savings = Monthly Bill × (Discount % ÷ 100) Annual Savings = Monthly Savings × 12 Effective Rate = Utility Rate × (1 - Discount %) Year N Savings = Year 1 Savings × (1 + Escalator)^(N-1) Total Savings = Sum of all annual savings over contract term Net Savings = Total Savings - Cancellation Fee

The escalator clause works like compound interest — but on your savings. A 1% escalator on $1,200/year in savings grows to $1,464/year by year 20, boosting total contract savings by about 12% versus a 0% escalator. Without an escalator, your fixed discount becomes worth more as utility rates rise.

Example

Maria in Chicago — Renter, 2 kW subscription

Maria rents an apartment and pays $130/month for electricity at 13¢/kWh. Her community solar provider offers a 10% discount with a 20-year contract and no escalator.

Monthly bill$130
Discount10%
Monthly savings$13
Annual savings$156
Effective rate11.7¢/kWh
20-year savings$3,120+

At $156/year and a 0% escalator, Maria saves over $3,100 in 20 years with zero upfront investment and no equipment to maintain. If ComEd raises rates 3%/year, her actual savings grow each year — making the real 20-year total closer to $4,200.

FAQ

Community solar (also called shared solar or solar gardens) lets you subscribe to a portion of a large solar farm without installing panels on your roof. The farm sends electricity to the grid, and you receive a credit on your utility bill equal to your share of production — at a discounted rate. It's available in 40+ states and is the only solar option for renters, condo owners, or anyone with a shaded or unsuitable roof.
The community solar farm produces electricity and sells it to the grid. Your subscription entitles you to a monthly bill credit based on your share of that production. The credit appears directly on your utility bill, reducing what you owe. You continue paying your utility company — just a lower amount. The discount (5-20%) is the difference between the utility's retail rate and the credit rate your provider charges you.
Yes — community solar was specifically designed with renters in mind. You don't need to own a home, have a suitable roof, or make any capital investment. All you need is an electricity account with a participating utility. This makes community solar accessible to the ~36% of US households that rent. Many programs prioritize low-income renters with larger discounts (20%+) and no cancellation fees.
Rooftop solar typically saves more money long-term (70-100% bill offset vs. 10-20% discount), qualifies for the 30% federal tax credit, and adds home value. But it requires $15,000-$30,000 upfront, ownership, and a suitable roof. Community solar requires zero upfront cost, works for renters, and is available immediately. Think of community solar as the practical choice when rooftop isn't possible — and rooftop solar when you want maximum long-term return.
Legitimate community solar is real and state-regulated. Watch out for: aggressive door-to-door sales pitches, contracts that don't clearly state the discount percentage, escalator clauses that grow faster than typical utility rate increases, high cancellation fees, and providers not authorized by your utility. Always verify your provider is listed on your utility's approved community solar program and get a contract showing the exact discount rate, escalator, and cancellation terms in writing before signing.

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