Image source: Canva.com
Have you heard about community solar? It’s a groundbreaking concept that brings together multiple customers to benefit from a single solar power system. Here’s what makes it so unique.
Shared Ownership or Subscription
With community solar, you have the option to either own a portion of the solar project or subscribe to the energy it produces. This means you don’t have to worry about installing solar panels on your property.
Centralized Solar Array
Picture a large solar power system located in a centralized spot, like vacant land or a spacious rooftop. That’s where the magic happens!
Virtual Net Metering
The electricity generated by the community solar project is fed into the grid. As a participant, you receive credits on your utility bills based on your ownership share or subscription level. It’s like getting rewarded for going solar!
Accessibility
Community solar opens doors for everyone. Whether you’re a renter, live in an apartment, or face obstacles like shading or roof orientation, you can still access solar energy. It’s all about making renewable power available to everyone.
Cost-Effectiveness
By sharing the costs of a larger solar installation, community solar becomes more affordable compared to individual rooftop systems. It’s a win-win situation for your wallet and the environment.
Local Development
Community solar projects are usually developed within the same utility service area as the participants. This not only brings renewable energy but also fosters local job growth and economic prosperity. It’s a real community effort!
5 Questions to Consider before You Choose Community Solar
Community solar offers accessibility, but not everyone qualifies. Here are five key questions to help you determine your eligibility.
1. Are There Open Projects Nearby?
To join a community solar project, you need available projects in your utility service area. Currently, 41 states and Washington, D.C. have such projects, but some states lack them entirely, and others have limited capacity.
2. Do You Handle Your Electric Bills?
Direct participation in community solar requires managing your own electric bill. If your landlord or building manager pays it, you may face challenges in signing up, as your provider needs a utility account to credit your bills.
3. Is Your Credit Score Sufficient?
Certain projects set minimum credit score requirements, typically ranging from 600 to 700. However, many providers are eliminating such prerequisites, particularly to promote adoption among low and middle-income communities.
4. Are You Planning to Move?
Community solar subscriptions often take time to set up, with credits appearing on bills after a few months. Moving within a year might complicate matters unless you stay within the same utility territory.
5. Do You Have Rooftop Solar?
If your rooftop solar system meets all your electricity needs, community solar may not provide significant benefits. However, if your system falls short or lacks net metering benefits, community solar could still be advantageous.
Considering these factors, it’s essential to weigh your options. While rooftop solar offers maximum long-term savings, community solar remains a viable alternative, especially if home installation isn’t feasible. Ultimately, both options support clean energy and can save you money.
How to Select the Ideal Community Solar Farm
In areas fortunate enough to have multiple community solar projects, choosing the right one can be crucial. Here are the key factors to consider when making your selection:
1. Community Solar Model
Community solar projects typically offer two models: subscription or ownership. The subscription model allows you to access electricity from specific panels or purchase a set amount of electricity, similar to leasing a solar panel system. Ownership-based models involve owning a predetermined number of panels or kilowatts from the solar array.
2. Estimated Savings
Most projects offer a fixed discount on purchased credits, ranging from 5-20%. Opt for the project with the highest discount rate to maximize savings. Additionally, consider any fixed monthly discount plans for lower-income customers.
3. Availability and Timing
Some projects require a minimum number of subscribers before development funding, leading to a wait before savings kick in. Others are actively accepting subscribers. Check the project’s availability and timing details to align with your preferences.
4. Billing Structure
Understand the billing structure, as some projects offer consolidated billing while others involve separate bills from the provider and utility company, affecting ease of tracking savings.
5. Cancellation Policy
Review the cancellation policy, noting any notice period requirements and potential penalties. Projects may offer sign-up bonuses, which can provide immediate savings upon subscription.
6. Sustainability
Consider the project’s sustainability, such as its location on undeveloped land, brownfields, landfills, or farmland. Projects with multiple land-use purposes are typically more sustainable and environmentally friendly.
7. Provider Reputation
Look for positive reviews from actual customers to gauge the provider’s reliability and customer satisfaction levels.
8. Project Location
Choose a project within your utility territory and consider proximity to your home for a closer connection to its impact.
By considering these factors, you can make an informed decision when selecting the most suitable community solar farm for your needs and preferences.
