In the last few years, many innovative solutions have been presented to address the climate change crisis. One of the innovative solutions is the participation of community members in the collective production of solar electricity instead of individual production. The current study aims to provide a critical literature review of the collective production of solar electricity, which is called “community-shared solar” (CSS). Sixty-seven peer-reviewed publications were selected based on the setting up of a combination of related keywords. To analyze the concept of CSS in the existing literature, a multi-level perspective (MLP) framework was used to observe the CSS innovation at the niche, regime, and landscape levels. Four aspects, including the technical, economic, socio-political, and regulatory and institutional, were considered to evaluate those three levels. The results revealed that in the technical and economic aspects, CSS has reached maturity and internal momentum that can take it to the next levels. However, a lack of attention to the socio-political aspect and the regulatory and institutional aspect, in particular, is the potential barrier to the emergence of CSS and its potential position as a leading energy system.