Community Solar Savings Calculator
Community solar lets you subscribe to a share of an offsite solar project and receive bill credits at the full retail rate while paying a discounted subscription rate — pocketing the difference without installing any panels. This calculator takes your monthly subscription share, utility retail rate, community solar discount, and any subscription fee, then reports the community solar rate, monthly bill credit, subscription cost, and net monthly and annual savings. For comparison, see the Solar Payback Calculator for typical rooftop-ownership economics, and for the related billing mechanism, see the Net Metering Calculator.
The portion of the community solar project's output you're subscribed to, typically sized to offset some or all of your monthly usage.
The full retail electricity rate you pay your utility, which is also the rate used to calculate your bill credit for the solar energy your share produces.
Community solar programs commonly offer a 5-20% discount off the retail rate, with 10% being a fairly typical figure. Rates and structures vary significantly by program and state.
Some programs charge a small administrative fee; many do not. Check your specific program's terms.
utility retail rate ($/kWh) × (1 − (community solar discount (%) ÷ 100))
monthly subscription share (kWh) × utility retail rate ($/kWh)
(monthly subscription share (kWh) × community solar rate ($/kWh)) + monthly subscription fee ($)
monthly bill credit ($) − monthly subscription cost ($)
monthly net savings ($) × 12
Results update live as you type. For planning and field-check estimates — always verify against applicable standards and equipment ratings.
How we calculate this →Community solar's core value proposition is simple: subscribers pay a discounted rate for their share of solar output, then receive a bill credit at the full retail rate for that same energy -- pocketing the difference without installing any panels themselves. At a typical 10% discount, a 500 kWh monthly subscription saves about $8.50 a month, or roughly $102 a year -- modest, but genuine savings with zero upfront cost, equipment maintenance, or roof suitability requirements, which is exactly why community solar has become an attractive option for renters and homeowners with shaded or poorly-oriented roofs.
How community solar savings are calculated
This calculator estimates the community solar rate, monthly bill credit, monthly subscription cost, and net monthly and annual savings, tying four inputs together: the monthly subscription share, the utility retail rate, the community solar discount, and the monthly subscription fee. Five quantities tie the calculation together.
Community Solar Rate ($/kWh) = Utility Retail Rate ($/kWh) × (1 − (Community Solar Discount (%) ÷ 100)). The community solar rate is the discounted per-kilowatt-hour price the subscriber pays for their share of the solar project's output. Applying the program's discount percentage to the full retail rate gives the rate the subscriber is actually charged. At the defaults ($0.17/kWh retail, 10% discount), that is 0.17 × (1 − 0.10) = 0.17 × 0.90 = $0.153/kWh.
Monthly Bill Credit ($) = Monthly Subscription Share (kWh) × Utility Retail Rate ($/kWh). The subscriber receives a bill credit on their regular electric bill for the energy their share of the project produces, valued at the full utility retail rate -- not the discounted rate. At the defaults (500 kWh, $0.17/kWh), that is 500 × 0.17 = $85.00.
Monthly Subscription Cost ($) = (Monthly Subscription Share (kWh) × Community Solar Rate ($/kWh)) + Monthly Subscription Fee ($). The subscriber pays the discounted rate for their share of the output, plus any fixed administrative fee the program charges. At the defaults (500 kWh, $0.153/kWh, $0 fee), that is (500 × 0.153) + 0 = $76.50.
Monthly Net Savings ($) = Monthly Bill Credit ($) − Monthly Subscription Cost ($). The difference between the full-rate bill credit and the discounted-rate subscription cost is the subscriber's net savings each month -- the core value of community solar. At the defaults ($85.00 credit, $76.50 cost), that is 85.00 − 76.50 = $8.50.
Annual Net Savings ($) = Monthly Net Savings ($) × 12. Scaling the monthly savings to a full year gives the total annual benefit of the subscription. At the defaults ($8.50/month), that is 8.50 × 12 = $102.00.
Two notes on the model. First, this calculator assumes a flat monthly subscription share and a stable retail rate -- real bills vary seasonally with usage and rate structures, and some programs use virtual net metering credits that settle annually rather than monthly, so actual month-to-month savings can differ. Second, the discount rate and fee structure vary significantly by state, program, and specific project; community solar is not available in every state, and eligibility, contract terms, and credit-carryover rules differ widely, so always confirm the specific program's terms before subscribing. Data sources: Community solar program structures and discount rates from state-level community solar program documentation and utility filings; bill credit and subscription cost calculation methodology from community solar program terms and conditions; typical community solar discount ranges from NREL and state energy office reports; community solar vs. rooftop solar economics from solar industry analysis and community solar program case studies; PPA vs. community solar comparison from solar financing and procurement literature. Verification: with defaults (500 kWh, $0.17/kWh retail, 10% discount, $0 fee), Community Solar Rate = $0.153/kWh, Monthly Bill Credit = $85.00, Monthly Subscription Cost = $76.50, Monthly Net Savings = $8.50, Annual Net Savings = $102.00.