Tips for Managing Community Solar Billing

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Community solar programs are a growing trend in renewable energy, offering an accessible way for individuals and businesses to benefit from solar power without needing to install solar panels on their own property. These programs allow participants to subscribe to a shared solar array and receive credits on their utility bills for the electricity generated by the system. While community solar can provide substantial savings and environmental benefits, managing billing and understanding how your credits are applied can sometimes be complex.

In this guide, we’ll explore practical tips for effectively managing your community solar billing. We’ll cover essential aspects such as understanding your billing statement, tracking your solar credits, and resolving common issues that may arise. By following these tips, you can ensure that you maximize the financial benefits of your community solar subscription and maintain clarity and control over your energy costs.

Be Prepared for Two Separate Monthly Bills

While the community solar industry aims for consolidated billing in the future, most programs currently require two distinct bills: one from your utility company and another from your community solar provider.

Your utility bill will generally look familiar and follow its usual format. However, your community solar bill will vary based on the amount of electricity your share of the solar farm generates during the billing period and the specifics of your subscription. Essentially, when you subscribe to a community solar project, you’re purchasing credits to apply toward your utility bill. The more electricity your share produces, the more credits you’ll earn. This concept can be a bit tricky, so let’s break it down with an example to illustrate how you can save money across these two bills:

Option 1: Fixed Discount on Energy Bill Credits

With this model, you receive a set percentage discount on the credits applied to your electricity bill. For example, let’s say you’re part of a community solar project that offers a 15% discount. If your solar panels generate 850 kWh and this results in a $120 credit on your utility bill, you would only pay $102 after the discount. This means you save $18 on your electricity bill for that month.

Option 2: Fixed Electricity Rate from the Solar Project

In this model, your community solar project charges a consistent price per kilowatt-hour (kWh) for the electricity you generate. For instance, if your community solar program charges 10.5 cents per kWh, while your utility’s rate is 12.5 cents per kWh, and your share generates 850 kWh, you would pay $89 to the solar provider. Your utility bill would be reduced by $106, giving you a net saving of $17.

Comparing Subscription Types

Fixed Discount on Credits: With this plan, you always get a percentage-based discount, meaning you save consistently regardless of changes in electricity prices in your area.

Fixed Rate for Solar Energy: Here, your savings depend on the difference between the fixed solar rate and your utility’s rate. If utility prices rise, you save more. If they drop below the solar rate, you might pay more for the solar energy.

Finding Your Community Solar Credit on Your Utility Bill

Your utility company and community solar provider will coordinate to ensure your solar credits are applied to your bill, so you won’t need to manage this yourself.

When you receive your first utility bill with solar credits, you may not immediately notice changes in the main sections like supply charges or usage history. Instead, the solar credits will appear as a separate line item, often with a negative value representing the reduction. How these credits appear depends on the state and utility provider. For instance:

• In Texas, providers like TXU Energy may list the credits under programs such as the “Renewable Buyback Plan,” where you receive credits for excess energy sent back to the grid.
• In Florida, you might see credits through Net Metering, often labeled as “Solar Energy Credits” from utilities like Duke Energy or FPL, which reflect the value of the energy exported back to the grid.
• In California, credits may appear under “Net Energy Metering (NEM)” on your bill, showing the difference between the energy your panels generate and what you consume.

To easily spot your solar credits, look for any new line items on your bill that show a negative charge, indicating the solar credits being applied.

Seasonal Fluctuations in Your Bill Credits

Expect variations in your bill credits throughout the year due to seasonal differences in energy production and consumption. Your share of the solar farm may produce more energy than you use during certain months, leading to higher credits on your utility bill. 

Since energy usage and solar production fluctuate with the seasons, you might see a growing credit value in your account. However, community solar savings are calculated on an annual basis, not monthly. Your solar share is designed to cover most of your annual energy needs, with any excess credits accumulated during high-production months being applied to months with lower production.

Community Solar Billing Process

Energy Generation and Credit Calculation

The community solar provider and utility company determine the amount of electricity generated by the solar project and how much of that energy corresponds to your share. This calculation is based on the size of your subscription and total solar production.

Monthly Credit Application

Once the amount of solar energy generated by your share is calculated, your provider sends you a bill for the solar credits you’ve earned. These credits represent the energy savings you’re entitled to for that billing period.

Utility Bill Adjustment

Your solar credits are then applied to your utility account, reducing the total amount owed on your utility bill. The credits typically appear as a negative line item, lowering your overall energy costs.

Bill Coordination

Ideally, the credits and your utility bill should sync up perfectly each month, but there are sometimes delays. For example, your solar provider’s billing cycle may not always align with the utility’s, resulting in a slight lag between when the credits are generated and when they appear on your bill. These delays, however, don’t affect your annual savings.

Managing Excess Credits

If you consistently accumulate more solar credits than you can use, it’s possible to adjust your subscription size. This ensures that your solar allocation better matches your energy consumption and maximizes your benefits.

“With our platform, going solar becomes not just a possibility but a seamless and empowering journey toward a cleaner, more sustainable future.”

Disclaimer:

Billing practices and the application of solar credits can vary depending on your utility provider and local regulations. It’s always a good idea to consult your local utility company to understand how solar credits are applied to your bill and to confirm any specific policies in your area.