On-Site Solar vs Community Solar Subscription

Yes. Most community solar programs accept commercial customers. Subscriptions are typically sized by kW or as a percentage of your annual electricity usage. Most programs allow subscriptions of 100 kW–5 MW, though availability varies by state. Commercial subscribers typically receive 5–15% bill credits applied directly to their utility invoice.

With the 30% ITC and MACRS 5-year depreciation, commercial on-site solar projects typically achieve a 5–8 year simple payback. Without incentives the payback is 9–14 years. After payback, solar generates electricity at approximately $0.01–$0.03/kWh marginal cost (O&M only) for the remaining 20+ years of panel life — a significant competitive advantage.

Community solar subscribers do not directly claim the ITC — the project owner (developer) claims it. However, the ITC savings are typically passed through to subscribers as lower subscription rates. If you want to directly claim the 30% ITC, you need to own the on-site system, either outright or through a direct ownership structure like a direct ownership PPA with your entity as the system owner.

Community solar subscriptions are typically transferable to another building in the same utility territory, or cancellable with 30–90 days notice (terms vary by contract). On-site solar is a physical asset attached to your building — it stays with the property and adds resale value. Panels can technically be relocated but at significant cost, making it impractical for most commercial moves.

Tenants and building lessees are almost always better served by community solar, since they cannot install permanent equipment and ITC pass-through to tenants requires complex lease structures. Building owners benefit most from on-site solar due to direct ITC, MACRS depreciation, and property value appreciation of 3–4% typically observed in commercial real estate.