Is community solar a scam?

No — it's a legitimate program created by state law, and it's regulated. But there are real bad actors in the industry, and there are three things people genuinely get burned on. Here's the honest version, including the parts that aren't in our favor.

Brighter Bills · Energy savings guides

Why it feels like a scam

Someone tells you that you'll save money on electricity, there's no cost, nothing gets installed, you don't have to own your home, and you can cancel. That sounds like a pitch, because it sounds like there's no catch. Fair reaction.

Here's where the money actually comes from. The company that builds the solar farm makes its money selling the power and claiming federal tax credits on the equipment. State programs require them to pass a share of the value to local subscribers. They need subscribers to qualify. You're not getting something for nothing — you're the reason their project works.

The biggest reason people call it a scam: the second bill

This is the number one complaint nationally, and it's worth understanding before you sign anything.

In many states, community solar sends you a second, separate invoice from the solar company on top of your utility bill. People see a new bill arrive, assume they're being charged twice, and conclude they've been had. They're usually still saving money — but nobody explained it, so it feels like a scam.

Whether this applies to you depends on your state.

• New York, New Jersey — one bill. Credits and charges appear on your existing utility bill. No second invoice.
• Illinois — both models are in use. The state is moving to consolidated single billing, but many projects still send two bills. Ask which one applies before you sign.
• Maine, Massachusetts, Minnesota, Delaware — two bills. Your utility bills you with the credits deducted; your solar provider bills you separately for those credits at a discount.

If you're in a two-bill state, here's the arithmetic. Say your normal electric bill is $180 and your share generated $100 in credits that month. Your utility bill is $180 minus $100 = you pay $80. Your solar bill is that $100 in credits at a 15% discount = you pay $85. Total out: $165 instead of $180. You paid two bills and came out $15 ahead. The second bill isn't an additional charge — it's you paying for the credit that already reduced the first one.

To check you're actually saving, add both bills together and compare against what the utility bill alone would have been. Judging it by one bill in isolation is the mistake almost everyone makes. More on the two-bill setup.

Three things that are actually worth worrying about

1. Long contracts with cancellation penalties

Some providers lock subscribers into multi-year terms with a fee to get out. Ask before you sign: what's the term, and what does it cost to cancel? A good program lets you leave with notice and no penalty. If someone won't answer that plainly, walk away.

2. Aggressive door-to-door and phone sales

There are salespeople who imply they're from your utility, or who rush you into signing. Your utility will never send someone to your door to sign you up for solar. Nobody legitimate needs your decision today.

3. Savings promised as a number instead of a percentage

Your credits depend on how much sun the project gets and how much power you use. Anyone promising an exact dollar amount every month is overselling. Real programs quote a percentage discount on the credits you receive.

How to verify any program yourself

• Illinois — check the vendor against the approved list at Illinois Shines (illinoisshines.com). The state screens vendors and requires standardized disclosure forms.
• New York — NYSERDA publishes guidance and a project list under NY-Sun.
• New Jersey — the Board of Public Utilities runs the Community Solar Energy Program and lists approved projects.
• Massachusetts — the SMART program is administered through the Department of Energy Resources.

Ask for the written disclosure form before signing anything. In Illinois it's legally required. Read the cancellation section first.

What you should expect if it's legitimate

• No upfront payment, ever
• Nothing installed at your home
• Your utility stays your utility — same company, same outage number
• A written disclosure showing the discount and the cancellation terms
• Credits starting within a few billing cycles, not immediately
• The ability to cancel with notice

The honest downsides

We'd rather you hear these from us than find out later:

• It's not instant. It usually takes two or three billing cycles before credits show up, and longer if the project is still being built.
• The savings are modest. Typically 5–20% on the supply portion of your bill — not on the whole bill. It's a steady discount, not a transformation.
• The amount varies month to month. Solar output changes with the seasons. You'll get more credits in July than in January.
• It doesn't touch delivery charges. If your bill is high because of delivery rates, this helps less than you'd hope.