Actions to Improve Community Solar Revenues in 2026

As the community solar industry enters 2026, many asset owners are taking a hard look at revenue performance from the past year. Subscriber turnover, billing delays, project underutilization, shifting regulatory conditions, and the slow payout of project incentives introduce variability into cash flows—often in ways that are difficult to detect until revenue is already impacted.

The good news: these challenges are solvable with the right upfront modeling, operational rigor, and subscriber management strategies.

Drawing on PowerMarket’s experience managing and acquiring subscribers across multiple markets and utility territories, this guide outlines concrete actions developers can take to improve and stabilize community solar revenues in 2026 and beyond.

1. Model projects with revenue durability in mind. Before subscriber acquisition begins, revenue modeling needs to look beyond the value of each rate class in isolation. The highest nominal rate class is not always the highest performing over the life of an asset. While mass market residential and low-income residential typically offer the highest community solar revenues, they can also carry higher churn and reacquisition costs. More balanced portfolios often outperform over time.

For 2026–2027 assets, developers should evaluate:

• Long-term churn expectations by rate class
• Reacquisition costs over the project lifecycle
• The role of commercial, municipal, affordable housing, or anchor tenants in stabilizing cash flow
• How subscriber mix impacts financing, credit risk, and operational complexity

A common and costly pitfall is having to reacquire subscribers before a project even reaches commercial operation. This often stems from misalignment between subscriber eligibility criteria and finalized incentive assumptions—a scenario PowerMarket sees more often than developers expect. Before subscriber acquisition commences, be abundantly clear on secured and/or applied-for incentives (especially the ITC Category 4 bonus), credit rating criteria, rate class specifications, geographical restrictions, etc.

Takeaway: Projects designed for long-term revenue durability take into account subscriber mix and subscriber lifetime value—not just isolated rate class values— resulting in stronger long-term cash flows.

2. Communicate early, often, and consistently with subscribers. Subscriber communication is one of the strongest predictors of retention—and retention directly impacts revenue. If subscribers aren’t hearing from you monthly or more frequently, communication is likely insufficient. Engagement should begin at enrollment and continue throughout the life of the subscription.

This is especially critical during the gap between signup and first bill credit. Community solar is a new concept to most customers, and many months can pass before the first set of credits appear. Without proactive education, confusion turns into cancellations. Well-informed subscribers are more patient, more satisfied, and far less likely to churn.

Effective programs invest in:

• Clear onboarding communications, such as through a welcome packet
• Regular status updates before credits begin (projects are often delayed)
• Ongoing education about billing, credits, and savings
• Tools that reach people on the channel they prefer (email, phone call, text, etc.)

Takeaway: Higher engagement leads to lower churn, fewer complaints or escalations, and reduced reacquisition costs.

3. Track and manage utility data with precision. Utility data is the backbone of community solar revenue—and one of its greatest operational challenges.

Each utility reports data on a different cadence, in different formats, and through different portals or email workflows. As portfolios scale across utility territories, disciplined and repeatable data processes become non-negotiable.

Inaccurate or delayed utility data can result in:

• Missed or delayed revenue
• Credits incorrectly applied to utility bills
• Subscriber disputes and cancellations

PowerMarket routinely validates utility-reported credits against subscriber bills to confirm that credits were applied correctly and on time. This level of verification is operationally intensive—but essential for protecting revenue and maintaining trust.

Takeaway: Clean, validated utility data is not just an operational function—it is a core revenue protection strategy.

4. Ensure accurate and optimized credit allocation. It may seem obvious, but revenue is maximized when allocations are optimized. You need to allocate 100% of your project to get 100% of potential revenue. However, PowerMarket has seen numerous instances of month-over-month under-allocation on assets we do not manage, leading to significant revenue losses and receivables delays.

Further, don’t assume that a 100% allocation schedule is sufficient. Utility verification results must be reviewed and confirmed—even if that verification process feels onerous.

Developers should also reconsider how credits are allocated: as electricity rates rise at increasingly high rates beyond the rise of community solar credit values, allocating on a kWh basis instead of on a monetary basis will lead to subscribers being underallocated. If left unmanaged, this creates credit shortfalls and avoidable revenue leakage.

Takeaway: Strategic allocation methods can materially improve realized revenue, but failure to employ such methods can be financially detrimental.

5. Understand how the subscriber experience impacts long-term enrollment. The overall subscriber experience directly influences retention. Developers should understand the customer experience and use it to:

1. make smart decisions about subscriber acquisition
2. push utilities and regulators to make improvements

Understanding and advocating for the following elements is key:

• Bill presentation and clarity
• Utility bill and reporting visibility of applied credits vs. banked credit data
• Community solar credits’ interaction with budget billing, LIHEAP, and other utility programs
• Responsiveness of customer support

Takeaway: A better subscriber experience translates directly into higher retention and lower lifetime acquisition costs.

6. Leverage market conditions and engage in regulatory advocacy. Community solar markets evolve quickly. Developers who actively monitor regulatory and pricing dynamics are better positioned to capture financial upsides.

Examples include:

• New York: The shift to multi-discount net crediting allows asset owners to improve returns on legacy 10% discount projects by enrolling new non-LMI subscribers at a lower 5% rate.
• Massachusetts: SMART 3.0 enables up to 15% of project capacity to be allocated to LMI subscribers at a 100% credit value, unlocking fresh opportunities for strategic allocation. Read more here.

Beyond market mechanics, regulatory engagement matters. To create and stabilize favorable market conditions, participate in working groups, talk with your elected officials, submit written comments to dockets, etc.

PowerMarket regularly participates in industry working groups and stakeholder processes, such as:

• Illinois Shines Consumer Protection Working Group
• New York Billing & Crediting Working Group
• Minnesota CSG Working Group
• And PowerMarket’s President & Chief Legal Officer, Jason Kaplan, serves on the NYSEIA Board, helping shape the future of clean energy policy, including community solar.

The community solar regulatory landscape is the cornerstone of program success. Regulatory outcomes directly impact project economics. Active participation has to be part of your revenue strategy—not an afterthought.

Takeaway: Developers who engage early and often in regulatory processes are better positioned to protect downside and capture upside.

7. Align closely with your community solar manager. If you work with a subscriber acquisition or management partner, transparent and ongoing communication is critical.

Sharing updates on the project’s COD, operational challenges, financier requirements, and performance expectations allows your manager to proactively optimize results.

At PowerMarket, we view subscriber management as a long-term partnership—not a transactional service. Our focus is on delivering reliable, repeatable revenue outcomes across the full life of an asset.

Takeaway: Strong alignment between developers and subscriber managers reduces surprises and allows PowerMarket to be proactive in servicing your community solar assets.

Ready to strengthen your community solar revenues?
PowerMarket works with leading community solar developers nationwide to acquire, manage, and retain subscribers—while navigating complex utility, regulatory, and market dynamics.

If you are evaluating a subscription manager or looking to improve performance across your portfolio, we welcome the conversation.

Learn how PowerMarket can help optimize your community solar revenues in 2026 and beyond.