What is Community Solar?
What is Community Solar and How Does it Work?
Community solar is an easy way for individuals, businesses, and organizations to access solar energy without installing solar panels on their own property. In a community solar program, a large solar farm is shared by multiple participants, each receiving credits on their utility bills based on their share of the energy produced by the solar array.
Here’s how community solar works: You subscribe to a portion of the energy generated by a nearby solar farm, your share of solar energy is sent to the local grid. In exchange, you receive energy credits that lower your monthly electricity bill.
This model makes solar power accessible to renters, homeowners with shaded roofs, or anyone who doesn’t want the upfront costs or maintenance associated with a personal solar installation.
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Is There a Downside to Community Solar?
While offer numerous benefits, there are some potential downsides to consider:
Availability: Community solar is not available everywhere. It typically depends on your local utility's policies and whether your state supports shared solar initiatives.
Savings Vary: Although many participants enjoy utility bill savings, the amount you save depends on factors like location, the utility company, and the solar farm you subscribe to.
Commitment Periods: Some community solar programs require participants to sign long-term agreements. This may not be ideal for people who move frequently or have uncertain future plans.
Ownership Structure: Since community solar systems are generally owned by the company, which can be a drawback for those who prefer ownership.
We recommend working with a broker to help you compare your options. This is the best way to maximize savings.
How Do Community Solar Companies Make Money?
Community solar providers make money in several ways:
Subscription Fees: Customers pay a monthly subscription to access a portion of the energy produced by a shared solar farm. This fee is typically 10%-20% lower than buying electricity from the grid, generating savings for participants.
Energy Credits: Community solar companies sell solar energy credits to participants at a discounted rate, profiting from the difference between the cost of generating solar energy and the price at which they sell it.
Partnerships and Incentives: Many providers partner with local utilities or governments, accessing additional incentives, tax credits, and renewable energy certificates that enhance their profitability.
Basically… Community farms sell you power at a lower price than the utility company.
What Is the Difference Between Community Solar and Utility Solar?
The primary difference between community solar and utility-scale solar lies in how the energy is distributed and who owns the solar installations:
Community Solar: This model involves a shared solar farm where multiple customers subscribe to a portion of the energy produced. Customers benefit from solar power without needing to own or install their own panels.
Utility Solar: These are large-scale solar farms owned by utility companies. The energy generated is sent directly to the grid and distributed to all customers.
Utility Solar is not built with the goal of saving people money. Community Solar companies want to make a profit by selling power at scale. They make money by saving you money.
What Discount Do I Get With Community Solar?
The discount you receive from community solar depends on the program and your local utility. The easiest way to get your exact savings is to book a 10 minute call with a local expert.
Our Approach means you are always left with the best possible savings.
Is Community Solar Cheaper?
In many cases, community solar can be cheaper than traditional utility power. Utility bill savings vary depending on factors like local electricity rates, the specific community solar program you join, and the amount of energy your share of the solar farm produces.
Most farms offer fixed savings between 10-20%. However, depending on your exact situation we have seen customers qualify for state sponsored programs and receive discounts of 60% or more.
National average savings is 15%
Community Solar Bottom-Line
Community solar is a powerful, cost-effective way for individuals, businesses, and organizations to benefit from solar energy without needing to install solar panels themselves. While community solar programs are an excellent option for many people looking to save on their utility bills — program space is limited and first come first serve.
At Epsilon Power, we believe in providing clear, transparent information to help you understand how community solar works and how it can benefit you. If you're ready to get exact details for your home or business, we’re here to help.
If you have more questions check out our FAQ.