For a business without roof access, community solar is usually the more practical option. An eligible subscription can reduce electricity costs without installing modules at your premises. Rooftop solar is still possible on a rented building, but you need the landlord’s permission, a suitable roof, and an agreement covering payments and ownership when the lease ends.[1]
The financial choice depends on the offer. A community solar discount may apply only to the credits you receive, while rooftop savings depend on installation costs, when you use electricity, and how your utility values exported power.
This guide covers U.S. subscription-based community solar and commercial rooftop solar. Financial examples explain the calculations; they are not customer results, market averages, or promised returns.
Which Option Fits Your Business?
| Business concern | Community solar subscription | Rooftop solar |
|---|---|---|
| Property access | Usually requires no installation at your premises | Requires roof rights, site assessment, construction, and utility approval |
| Payments | Subscription charges in exchange for bill credits; check upfront and recurring fees | System purchase, equipment lease, or power purchase agreement (PPA), where permitted |
| Maintenance | The project owner generally maintains the equipment | Responsibility follows the ownership and service agreements |
| Moving premises | Transfer or cancellation depends on the contract and new utility territory | May require a contract transfer, buyout, or equipment removal |
| Electricity included in rent | May require landlord participation and a credit-sharing agreement | Requires written allocation of costs and electricity savings |
Check Community Solar Eligibility First
Use your electricity bill to identify the utility, service address, account holder, and rate class. Ask the utility or state energy agency which projects accept that account type. A program serving households may not accept your business, and a project in your state may serve a different utility territory.
Confirm available capacity, any credit requirements, subscription limits, and the expected first credit date before comparing discounts. For example, New York’s energy agency provides a project directory with subscription terms and expected savings; those listings apply to New York, not nationwide.[2]
Check every account separately if you operate several stores. If you already have rooftop solar, ask whether the account can also subscribe and how its reduced electricity purchases affect the allowed subscription size.
Calculate the Subscription Savings
Suppose your monthly electricity bill is $2,000. A subscription provides $1,000 in credits you can use that month and costs $900. With no other fees:
| Item | Amount |
|---|---|
| Original electricity bill | $2,000 |
| Bill credit | −$1,000 |
| Subscription charge | $900 |
| Total paid | $1,900 |
| Net savings | $100 / 5% |
The advertised discount is 10% of the credit value, but your total spending falls by 5%. You would save $1,200 annually only if that $100 result held for all 12 months.
Share your last 12 months of bills with providers. Request monthly estimates of usable credits, subscription charges, and other fees. A fixed payment, a price per unit of generation, and a percentage of credit value produce different results as generation and utility rates change.
Unused Credits
If you can use only $800 in credits but owe a $900 subscription charge, your cash outlay that month is $100 higher than it would be without the subscription. Check rollover rules, expiration dates, and whether you can reduce your allocation after closing a store or cutting electricity use.
The contract should also explain billing before the project starts and cancellation rights if it is delayed. When checking statements, match charges and credits to the same generation period rather than assuming they arrive together.
Price Increases and Exit Fees
A fixed monthly charge starting at $900 and rising 2% annually reaches about $974 in year five. If credits remain $1,000, monthly savings fall to about $26. A contract charging a fixed percentage of credit value would work differently.
Saving $100 a month for a year produces $1,200; a hypothetical $600 cancellation fee leaves $600. Some plans have no exit fee. Get the notice period, fee formula, account-transfer rules, and treatment of remaining credits in writing.
Assess a Rented Roof Before Pricing the System
Your landlord’s approval should identify the roof-use period, the meter receiving solar output, and the party receiving the savings. Modules connected to a common-area meter may reduce the landlord’s bill rather than yours.
For commercial and industrial rooftop systems, the installer must check usable area, shading, structural capacity, and maintenance access. Rated module wattage alone does not establish how much capacity the roof can support.
Keep the exact model’s module specifications and installation documents with the proposal. Dimensions, weight, electrical ratings, and mounting requirements all affect the design.
- Lease length: A five-year property lease and a 15-year PPA leave ten years of potential obligations. Establish transfer, buyout, or termination terms.
- Roof repairs: If repairs are expected in three years, assign module removal, storage, reinstallation, and downtime costs.
- Ongoing costs: Identify who pays for maintenance, inverter replacement, insurance, leak repairs, and roof restoration.
Value the Electricity Correctly
Do not multiply all expected solar generation by the average price on your electricity bill. Separate electricity used on-site from electricity exported to the grid. Apply the relevant avoided charges to on-site use and the utility’s export rate to exports. Fixed charges may remain payable.
Compare both options over your expected occupancy period using the same consumption and utility-rate assumptions. Include installation or contract payments, financing, maintenance, and obligations remaining when you leave. Count tax benefits only after confirming current eligibility and which party receives them.
For an owned system, include a supportable estimate of any recoverable end-of-period value. Discount future cash flows consistently, and do not count both the full purchase price and loan repayments covering that same principal.
Demand Charges Need a Separate Check
Suppose your bill contains $2,000 in energy charges plus billed demand of 100 kW at $15 per kW. The total is $3,500. If rooftop solar cuts energy charges by $200 but demand charges stay unchanged, your total bill falls by about 5.7%.
Request usage data matching the utility’s demand interval, such as 15 or 30 minutes. An 8 p.m. peak will not be directly reduced by daytime solar production without storage or a change in operating schedules. Check tariff rules for historical peaks and minimum billed demand.
Community solar generally does not change your site’s measured demand. Whether its credits can offset demand charges depends on the program’s billing rules.
If Electricity Is Included in Rent
A fixed $3,000 monthly rent that includes electricity does not automatically fall when the landlord’s bill falls. A lease amendment should specify a rent reduction, a percentage of credits returned to you, or an adjustment through building-expense billing.
Include access to the supporting bills. Until that arrangement is agreed upon, do not enter the landlord’s projected savings in your own business forecast.
Check Renewable Energy Rights
In the United States, one renewable energy certificate (REC) represents the renewable attributes of 1 MWh, or 1,000 kWh, of electricity.[3] Bill credits tied to 10,000 kWh of generation do not automatically include the corresponding ten RECs.
For renewable electricity claims or market-based Scope 2 reporting, check REC ownership, retirement records, and your reporting standard’s requirements. Owning rooftop modules does not preserve the right to claim their renewable attributes if the associated RECs are sold.[4]
Neither Option Guarantees Backup Power
A community solar subscription normally provides no backup supply at your premises. Standard grid-connected rooftop systems also generally shut down during an outage. Continued operation requires a system configured for islanded operation, with suitable equipment and controls.[5]
A steady 5 kW load running for four hours needs 20 kWh before losses. Battery selection must also account for usable capacity, conversion losses, startup loads, and power output limits.
If No Local Subscription Is Available
Ask your utility about a waiting list or renewable electricity tariff, and ask your landlord whether a shared rooftop arrangement is possible. A green tariff may add a premium rather than reduce costs. For example, an extra $0.01 per kWh adds $100 to a month with 10,000 kWh of purchases.
If renewable electricity reporting is the priority, eligible REC purchases may address that requirement, but they do not automatically lower your utility bill or provide backup power.