Community Solar, Community Choice Aggregation, and Green Energy Plans

You want to power your home with clean energy, but installing rooftop solar panels isn't the right fit. The good news? You may have other options. 

Whether it's community solar, community choice aggregation, or green energy plans, you can still use clean power and potentially save on your utility bills — all without installing a single panel. Read on to explore how these programs work and determine which one is the best path to a more sustainable home.

What is community solar?

As defined by the US Department of Energy, community solar programs help multiple people enjoy the shared benefits of solar energy. They can join a shared solar project or purchasing program in their area.

Participants can include individuals, businesses, nonprofits, and others in the project area. Typically, the solar power is either generated at an off-site array or an on-site solar system that serves multiple families.

• Off-site array: The participants collectively buy or lease some of the solar panels in the array. They get a bill credit for the electricity generated by their solar panels and can use that credit to pay their utility bill.
• Centralized, multifamily systems: A more common solution for places like apartments or condominium complexes, all the occupants of the buildings will benefit from the energy produced by a centralized rooftop solar installation.

The National Laboratory of the Rockies has collected key statistics on the reach of community solar programs in the United States, as of June 2025.

• Community solar programs are active in 43 US states plus Washington, DC.
• Community solar projects have more than 11 gigawatts alternating-current (GW-AC) of capacity. 
• About 75% of the community solar market is concentrated in four states: Florida (3,873 MW), New York (2,410 MW), Massachusetts (1,054 MW), and Minnesota (932 MW).

What is community choice aggregation?

Community choice aggregation (CCA) allows local governments to buy electricity on behalf of the residents in their geographic area to get a wholesale price. They are designed to offer the following benefits.

• Electricity at competitive prices
• Energy programs tailored to the needs of your community
• Local control by local community representatives
• Revenue reinvested into the community
• Supports local job creation with local energy projects

The “choice” part of community choice aggregation refers to choosing which energy resource the community will use for electricity. Common options include natural gas, nuclear, coal, or any form of renewable energy. The local government, potentially allied with other neighboring cities, will then buy electricity in bulk for the entire area to get electricity at a competitive price. While the government buys the electricity wholesale for its customers, investor-owned utilities will still transmit and distribute the electricity to those customers.

In regions with CCAs, strong community demand for clean energy can incentivize renewable energy development.

If you buy or rent a home in an area that has created a community choice aggregation program, you are automatically signed up for the program. You must opt-out if you don't want to participate.

The following states had areas with active community choice aggregation programs at our last check.

• California
• Illinois
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• Ohio
• Rhode Island
• Virginia

Here are some interesting stats about community choice aggregation:

• These programs have set several national green power and climate protection records, while lowering power bills.
• CCA programs have received recognition from the National Laboratory of the Rockies and Environmental Protection Agency for having more green power at a lower price than standard utility electricity.
• Several CCA programs in major US population centers have greener energy portfolios than local utilities, but don't charge a premium. This has led to the EPA giving them "green power leadership awards" for their achievement in renewable energy.

According to the Sierra Club, there are more than 180 cities and counties fully powered or committed to reach 100% powered by clean energy in the US.

Community solar vs. community choice aggregation

Let’s compare community solar projects and community choice aggregation programs.

Similarities

• Both options serve a group of people rather than an individual.
• They can both support local renewable energy advancement. However, community solar is more likely to.
• Neither are available everywhere, so you have to research to see if these programs exist in your area.

Differences

• You don't have to buy or lease solar panels for community choice aggregation.
• Community choice aggregation typically has consolidated billing, while community solar may not.

What are green energy plans?

Green energy is any energy produced from a renewable energy source like wind, solar, and geothermal. (Compare that to electricity produced by fossil fuels like coal and natural gas, which is definitely not green.) By signing up for a green energy electricity plan, people can choose to power their homes or businesses with clean energy without installing solar panels.

When you select a green power program from your utility company or retail electric provider, you give that company the money to buy a specific amount of electricity created exclusively from renewable energy. That green energy is then added to the larger utility grid. While it's not possible to guarantee your home will use that clean energy, you are helping to add to the overall amount of renewable energy available on the electric grid.

Check with the utility company in your area to see if it offers specialized green power options. If you live in an area with deregulated energy, you may be able to select a retail electric provider that offers green energy plans.

Understanding renewable energy credits

Green energy plans are powered by renewable energy certificates (REC).

• One REC is the equivalent of 1,000 kilowatt-hours (kWh) or 1 megawatt-hour (MWh) of electricity generated by 100% renewable energy sources.
• RECs could come from many different types of renewable energy, not just solar or wind.
• RECs are a way to incentivize utility companies and retail electric providers to invest in green power.

When someone chooses a green energy plan for their home or business, the energy company must purchase enough RECs to equal that consumer’s energy usage.

• Many states have created REC markets to encourage the increased development of green energy generation.
• Markets allow utility companies and retail electric providers to purchase RECs to prove they have purchased green energy on behalf of their customers.
• Markets also exist for solar renewable energy credits — RECs backed by 100% solar energy.

Green energy vs. clean energy

• While many people consider green energy and clean energy the same, the terms are often used in different ways. Be sure you understand how each term is being used as you evaluate plans.

Pros and cons of community solar, community choice aggregation, and green energy plans

If you want to go solar in your home but you don’t have the opportunity to install solar panels, choosing any of these three options is a great path forward. However, each one has certain pros and cons that might help you decide.

Community solar pros and cons

Community solar has many, but not all of the benefits of rooftop solar.

• Powering your home with solar energy
• Shared maintenance of the solar panels
• Flexible plans
• Greater electricity rate stability
• Reduced carbon footprint
• Lower greenhouse gas emissions

Community solar does have some downsides:

• Consumer incentives are generally not available
• Not all states have community solar projects
• Existing community solar programs may be full

Pros and cons of community choice aggregation

Community choice aggregation has significant positives:

• Helps your city choose to invest in renewable energy sources
• More transparency with local control
• Reduced carbon footprint
• Lower greenhouse gas emissions

Disadvantages to community choice aggregation do exist:

• Level of clean energy depends on the details of the plan

Pros and cons of green energy plans

Choosing a green energy plan for your home has plenty of positives:

• Help companies invest in renewable energy
• Reduced carbon footprint
• Lower greenhouse gas emissions
• Support future clean power developments

Signing up for a green energy plan could come with some negatives:

• No guarantee rates are competitive with dirty electricity

Deciding between community solar, community choice aggregation, and green energy plans

Community solar or rooftop solar with your own solar panels are great ways to utilize solar or clean energy and save money. In some areas or states, community choice aggregation plans or green energy plans are available and could be the best avenues. 

In some areas of Texas, Palmetto’s Clean Energy Buyback Plan and Battery Rewards Plan give customers competitive bill credits for solar energy they export to the electric grid. With the Energy Plan, customers get 100% renewable grid energy at times they don’t have solar power. With the Battery Bonus Plan, customers get an annual credit for having their battery power be used for grid balancing while having their own backup power.

If you want to install solar panels on your home to avoid rising energy prices, talk to Palmetto today. The new Palmetto app gives you more ways to save, learn about your home’s energy use, and monitor your solar power usage if you’ve gone solar. You can also get started with our free solar savings tool to see how much you can save by going solar.

Frequently asked questions

What is community choice aggregation?

Community choice aggregation programs allow a local government to buy electricity, from sources chosen by the public, at a wholesale price from a utility provider. A CCA program is meant to give a community lower energy prices, more control, and more local revenue and jobs.

What is community solar?

Community solar refers to a plan with local participants having a shared solar project or purchasing program for solar power. The solar power can come from an off-site or nearby array. 

Are there downsides to community solar?

Potential drawbacks with community solar plans include limited availability. Community solar participants often can’t claim solar incentives.

Is community solar better than rooftop solar panels?

Community solar may be more accessible, since people without suitable properties and renters can use it to take advantage of solar’s benefits. The commitment to community solar may be shorter term than the commitment needed for a solar lease or purchase. On the other hand, rooftop panels allow for greater homeowner control in designing the system and may deliver greater savings over the lifetime of the agreement.

This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.