Community Solar Programs Available in Washington State

Community solar programs give Washington residents and businesses a path to solar-generated electricity without installing panels on their own property. This page covers how these programs are structured, which subscriber types qualify, what regulatory frameworks govern them in Washington, and where the boundaries of eligibility and program design fall. Understanding these structures matters for anyone who rents, owns a shaded or structurally unsuitable roof, or simply prefers off-site generation as an alternative to a rooftop system.

Definition and scope

Community solar — sometimes called shared solar or solar gardens — is a model in which a centralized solar array generates electricity that is credited proportionally to multiple subscribers based on their ownership share or subscription size. Subscribers receive a credit on their utility bill rather than direct electricity from panels on their property.

Washington State's framework for community solar falls under the authority of the Washington Utilities and Transportation Commission (UTC) and is shaped by the state's Clean Energy Transformation Act (CETA), enacted in 2019 (RCW 19.405). CETA mandates that investor-owned utilities achieve 100% clean electricity by 2045, and community solar programs operate as one tool toward that target.

The primary state-level program with a community solar component is administered through Puget Sound Energy (PSE) and Pacific Power, both of which are investor-owned utilities regulated by the UTC. Public utility districts (PUDs) and municipal utilities operate under different statutory authority and are not subject to UTC jurisdiction in the same way; their community solar offerings, if any, are governed by individual district policies under RCW 54 and RCW 35.92 respectively.

For a broader overview of how solar generation integrates with Washington's grid and policy structure, see the conceptual overview of how Washington solar energy systems work.

Scope limitations: This page addresses community solar programs available to Washington State subscribers under Washington law. It does not cover federal tax credit treatment of community solar subscriptions, programs in neighboring states, or off-grid cooperative energy arrangements. Federal Investment Tax Credit (ITC) applicability to community solar shares is a separate question addressed in Washington Federal Solar Tax Credit Applicability.

How it works

A community solar project operates through a structured subscription model with distinct phases:

1. Project development and permitting — A developer or utility constructs a solar array, typically on leased agricultural, commercial, or utility land. The project must obtain building permits, electrical permits, and interconnection approval from the relevant utility under Washington's interconnection standards. Permitting requirements align with the Washington State Building Code (WAC 51-51) and National Electrical Code (NEC) Article 690, which governs photovoltaic systems, as codified in NFPA 70 (2023 edition).

2. Subscription enrollment — Residential, commercial, or nonprofit subscribers sign up for a share of the array's output, typically measured in kilowatts (kW) or kilowatt-hours (kWh) per billing period. PSE's community solar program, for example, has historically offered subscriptions in 100 kWh monthly blocks.

3. Generation and credit allocation — The array generates electricity fed directly to the grid. The subscriber's utility account receives a bill credit proportional to their subscribed share, calculated at a rate set by the utility tariff approved by the UTC.

4. Billing reconciliation — Credits offset the subscriber's standard electricity charges. If credits exceed monthly consumption, most program designs carry the balance forward to subsequent billing periods rather than issuing cash refunds.

The bill credit rate, credit rollover policy, and maximum subscription size are utility-specific and subject to UTC-approved tariff schedules. For the regulatory framework governing these tariff structures, see Regulatory Context for Washington Solar Energy Systems.

Common scenarios

Renters and apartment dwellers represent the primary beneficiary group for community solar. A renter with no roof access can subscribe to a portion of a shared array and receive credits on their electricity bill regardless of building type or landlord permission. Washington's community solar programs typically allow subscriptions that cover up to 100% of a subscriber's average annual consumption.

Low-income households have access to specific carve-out provisions. CETA includes requirements for utilities to ensure low-income customers can participate in clean energy programs. PSE's Green Energy Program and successor community solar offerings include rate structures designed to reduce barriers for income-qualified subscribers. The Washington Low-Income Solar Access Programs page covers these provisions in detail.

Businesses and nonprofits with unsuitable rooftops — due to structural limitations, shading, or lease constraints — use community solar subscriptions as an alternative to on-site systems. Commercial subscribers may subscribe to larger block sizes than residential customers, subject to tariff caps.

Rural landowners who host community solar arrays on agricultural land represent a distinct scenario. Hosting agreements involve easement and land-use considerations separate from the subscription relationship; Washington Solar Easements and Shade Rights addresses those property law dimensions.

For comparison: a rooftop solar system produces credits under net metering (RCW 80.60) tied to a specific meter at the generation site, while a community solar subscription produces credits allocated from a remote array under a utility tariff. The credit rate, program term, and transferability differ substantially between these two models. Washington net metering rules are covered in detail at Washington Net Metering Explained.

Decision boundaries

Several structural factors determine whether a community solar subscription is appropriate for a given situation:

• Geographic eligibility: Subscribers must be located within the same utility service territory as the community solar project. A PSE subscriber cannot participate in a Pacific Power community solar program.
• Subscription size limits: UTC-approved tariffs set maximum subscription sizes, often tied to the subscriber's historical consumption. Subscribing beyond average annual usage may not generate additional financial benefit if excess credits expire.
• Program availability: Community solar capacity is finite. Waitlists exist when subscribed capacity reaches the project's allocation limit. Program availability is not continuous.
• Lease vs. ownership structures: Some programs offer subscriptions as a lease (monthly fee), while others allow outright purchase of a production share. Ownership structures may affect eligibility for federal and state incentives differently.
• Credit portability: Most Washington community solar programs do not allow subscribers to transfer credits to a different utility account or a new address served by a different utility, which limits flexibility for subscribers who relocate.

Residents evaluating community solar against rooftop installation should also consider Washington Solar Financing Options and Washington Solar Panel Roof Suitability to establish whether on-site generation is viable before defaulting to a subscription model.

The Washington State Energy Policy and Solar page provides additional context on how CETA and related legislation shape the supply and structure of community solar programs across the state.

For a complete starting point on solar energy options available to Washington residents, the Washington Solar Authority home page provides orientation across the full topic landscape.

References

• Washington Utilities and Transportation Commission (UTC)
• Clean Energy Transformation Act — RCW 19.405
• Washington State RCW 80.60 — Net Metering
• Washington State RCW 54 — Public Utility Districts
• Washington State RCW 35.92 — Municipal Utilities
• Washington Administrative Code WAC 51-51 — State Building Code
• National Electrical Code (NEC) Article 690 — Photovoltaic Systems, NFPA 70 (2023 edition)
• Puget Sound Energy — Green Energy Program