What is community solar?
We acknowledge that, as much as we’d like to see solar panels on every single roof in the country, it’s not going to happen. Community solar, on the other hand, allows people who can’t or don’t want to put solar panels on their own land to still reap the benefits of solar.
What is community solar?
What community solar is not
- Group Purchasing: Through discussions with a solar installation provider, such as Philadelphia’s Solarize program, a large number of households or businesses are able to acquire their own individual solar systems at bulk rates. Unlike a community solar project, where everyone benefits from a single central system, under a group purchasing program, everyone buys their own solar project.
- Green Power Rates: Green power rates allow a utility’s customers to buy electricity generated by renewable energy sources, such as large-scale hydro, wind, and solar. Those that enroll in green power programs do so mostly to ‘do the right thing,’ rather than to save money on their electricity bills, as these solutions are often more expensive. Importantly, participation in a green power plan does not always imply the construction of new renewable power plants, as the electricity might come from current sources. The majority of community solar projects, on the other hand, are designed with the primary goal of lowering participants’ electricity bills.
- Crowdfunding / Online Solar Investment Platforms: Some businesses have made renewable energy investment available via online platforms that allow you to invest in new solar projects. These kinds of initiatives are entirely financial investments: you don’t get any electricity from them, so they don’t help you save money. Note that while the profits from these initiatives are usually taxable (as investments), the savings from a community solar project are not.
How does community solar work?
- Ownership: Participants can buy a specific number of panels or a piece of the community solar project under this arrangement. You’ll get energy bill credits/savings from all of the power produced by the solar panels you own if you invest in a community solar project.
- Subscription: With this concept, members can become subscribers and pay a cheaper monthly utility payment. Rather than owning panels or a stake in the project, you simply buy electricity at a cheaper cost than you would pay if you bought it from your utility.
While program details vary every project, most do not involve any upfront payments and provide immediate bill savings. In this situation, joining a community solar project is similar to joining a green power program, except that instead of paying a higher price for clean electricity, community solar members often pay a cheaper price.
While program details vary every project, most do not involve any upfront payments and provide immediate bill savings. In this situation, joining a community solar project is similar to joining a green power program, except that instead of paying a higher price for clean electricity, community solar members often pay a cheaper price.
To participate in the community solar program, you may need to live a specific distance from the community solar project (i.e., inside your utility’s service area) depending on your state or utility provider. Many community solar projects also impose a limit on the amount of electricity you can obtain (i.e., no more than 120 percent of your average monthly usage).
The majority of subscription-based programs are simple to sign up for and discontinue.
Where is community solar available?
To open projects, legislative legislation on community solar is required. Although the vast majority of states in the United States have passed legislation permitting community solar projects, capacity remains concentrated in a few states. Based on Department of Energy’s Solar Energy Research Database, states where community solar option is available are mentioned below:
