Introduction: The advance towards sustainable energy across the globe has lead to the technological advancement in the solar industry where today’s photovoltaic (PV) panel boasts an efficiency ranging to a record high of 44.5%. This significant uplift has been accompanied by the decrease in costs of solar energy and has established it as a fundamental part of community sustainable energy project. However, the shift from large-scale traditional power structures to small-scale community renewable mini-grids projects has many policy and, economic and technical and social barriers. Materials and Methods: This systematic review aggregates data from 64 scientific papers, published between 2007 and 2023, addressing consumer-oriented aspects of PV energy communities. The literature was systematically analyzed across eight key areas: policy initiatives, generation and trading structures, tendencies, and impacts, economic analysis, business cases, energy policies and plans, demand side integration, mathematical and simulation tools, and consumers’ characteristics. Results: The review also shows major developments on the materials and structure of a solar cell that has made it more efficient coupled with a reduced cost implication. New business models and revenue streams such as virtual utility business models of community solar and peer-to-peer trading platforms based on blockchain are identified as evolving. However, there are still challenges such as regulatory limitations, absence of adequate funding structures and low customer awareness. Best practices underscore the need for targeted policies, new forms of industry structure, and customer involvement. Discussion: True, technology is advancing steadily, yet unlocking the full potential of CSPs demands a systems-approach addressing multifaceted challenges. Policy reforms for community ownership, standardisation of interconnection procedures and laying down fair schemes of sharing the benefits are important. Strategic financing solutions, energy management systems integrating IoT and AI, and specific focus on educational outlooks can boost the rate. The review also points out gaps on the assessment of non-energy benefits and the integration of storage at the community level. Conclusion: Community-based solar energy systems represent a promising pathway for accelerating the clean energy transition while fostering local resilience and energy democracy. However, their widespread implementation necessitates coordinated efforts across policy, technology, and social domains. This review provides a comprehensive framework for researchers, policymakers, and practitioners to address key barriers and leverage emerging opportunities in community solar development. Future research should focus on developing standardized metrics for assessing community solar impacts and exploring synergies with other distributed energy resources.