What’s holding community solar back? | Rare

Community solar offers a promising solution for expanding clean energy access to people who might otherwise be left out, like renters and those without suitable roofs. It allows individuals to tap into shared solar projects, reducing their electric bills while lowering their personal impacts on climate change. With the Inflation Reduction Act (IRA) boosting tax incentives and funding, especially for low- and middle-income households, community solar is set to expand rapidly and is projected to grow by 118% over the next five years.

Yet despite these clear benefits, convincing eligible residents to sign up remains a significant challenge. 

As part of Rare’s SHINE equity-focused energy initiative in the United States, we researched the barriers to community solar adoption in Boston’s historically marginalized neighborhoods. Our goal was to understand residents’ concerns and identify the behavioral factors driving their decisions about community solar. How can we design outreach that resonates, meets their needs, and motivates sign-ups? 

This post shares our key insights to help create an effective, behaviorally informed community solar campaign.

Below, we identify the behavioral barriers to adoption that surfaced during our interviews with local residents:

Confusion about community solar: Many residents were unfamiliar with community solar or confused it with rooftop solar, which is all they had seen. The idea that they could benefit from solar energy without installing panels was entirely new, and even when described to them, many expressed difficulty conceptualizing how it would work. 

Skepticism based on past experiences:  Some participants recalled negative experiences with third-party energy suppliers, leading to a general distrust of new energy programs. Without clear, proactive outreach from trusted sources, even the most accessible community solar programs could fail to reach those they intend to benefit.

Savings alone aren’t enough: It’s not enough to offer savings; those savings must also be easy to access. While many residents appreciated the potential for lower electric bills, they raised concerns about trade-offs. Daniel, a renter from Dorchester, shared: “I know about the idea of community solar, but I don’t know if it’s available in my area… I don’t know the exact process or steps to sign up. If I saw some reduction in my current bill, then sure, why not?” Others, like Shateara, worried about complications: “It depends on the person. I try to keep things as simple as possible, especially regarding bills. [Two bills] sounds like more of a headache.”

Environmental motivations matter – up to a point: While cost savings were important, many participants were drawn by the desire to support sustainability. As Purple, a renter from Jamaica Plain, told us: “You have to mention both [in an ad for community solar] because different things resonate with different people, and for me, they’re equally important.” It’s important for people working on or considering working on community solar to note that the environmental motivations will not always be enough to overcome financial barriers or process complexity.

Solar access is appealing: Once they understood the concept, renters and those wary of installation hassles liked the low-effort nature of participation. Purple told us: “The solar panels wouldn’t be on my property because I rent. I don’t own this, so I wouldn’t need permission to put something on the property where [the landlord] might say absolutely no.” As noted earlier, this convenience may not always overcome process friction.

Need for trust and social proof: Several participants emphasized the importance of hearing from others who had already joined. Gisella, from Metapan, said she’d like to know, “How many people in Massachusetts are using this…what are their savings? I would like to speak with someone who I trust who’s using it currently for me to actually be at a point of, you know, being really interested in signing up.” Purple agreed, “[I’d like to hear..] testimonials of people who have signed up and why they did. Because you know, you tend to trust your circle more so than you would trust, you know, someone that you see, you know, on a commercial or something.” Before committing to new initiatives, they relied heavily on community and faith-based organizations for information and reassurance.

Concerns about transparency and protection: Daniel emphasized the importance of guarantees: “People really need to have some level of confidence in terms of protection.… If something goes wrong down the line after they sign up to this kind of program. What kind of protection do they have? [Consumer protection] is also another incentive… people should not be subject to some kind of additional cost once they get into this kind of program.” The fear of hidden costs or unanticipated fees was a significant obstacle, highlighting the behavioral principle of loss aversion, where the fear of potential losses outweighs the appeal of possible gains.

Bridge knowledge gaps 

Simplify messaging and decisions: People hesitate to act when they don’t fully understand something. Cut through the confusion using clear, simple language to explain how community solar works and its benefits. The easier and more straightforward the process, the more likely people are to sign up.

Highlight personal and collective gains: Emphasize both the financial savings and the positive environmental impact. This helps tap into prosocial behavior motivations, which are behaviors aimed at benefiting others. For example, The more people that sign up for community solar, the cheaper it becomes for everyone.

Eliminate the fear of getting scammed 

Transparent communication in contracts: Provide clear terms, upfront disclosure of potential downsides, and straightforward contracts. 

Consumer protections: Offer guarantees that protect consumers from hidden costs and future rate hikes. By allocating funds to support these protections, you address fears tied to loss aversion—a key behavioral barrier. Providing these safeguards builds trust and encourages long-term participation, making consumers feel secure in their decision to join.

Simplify the bill people see: To improve user experience and drive participation, combine utility costs and community solar credits into a single, easy-to-understand statement. This straightforward approach enhances customer satisfaction and makes community solar more attractive to potential participants.

Use trusted messengers to make it credible and observable

Provide a way to make sign-ups visible: Engage local leaders, church groups, and community organizations to endorse the program. When adopting a new technology or behavior, people often look at people they identify with or aspire to. This social proof of what others are doing is constructive when people are uncertain about what to do when faced with a new concept like community solar. 

Tap into dynamic norms: While community solar is still new and uncommon, sharing peer testimonials and success stories can normalize signing up. Making sign-ups observable and highlighting positive success stories can emphasize what people are starting to do in the community and signal them to join in.

Organize community meetups: Host local gatherings where neighbors can connect, allowing others to learn about the benefits and get support for community solar. Overcoming skepticism requires sustained, long-term effort and consistent positive experiences.

Simplify the sign-up process

Streamlined Enrollment: Develop a user-friendly online platform with clear, step-by-step instructions. Make it accessible by offering it in multiple relevant languages.

Offer customer support. This will help people feel like they will have control over their experience once they sign up.

Multiple Access Points: Provide alternative sign-up options (such as phone and in-person) to meet different preferences and reduce barriers. Partner with local organizations already serving the target communities to leverage their existing networks and communication channels. While engaging with these communities, take the opportunity to introduce community solar as well.

The Center for Behavior and the Environment at Rare is preparing to design a community solar outreach campaign based on these findings, to generate demand for SHINE’s work. Addressing the behavioral barriers and creating a more streamlined, trusted process is key to making community solar accessible to everyone.

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