Community Solar: Economic Benefit for Residential and Commercial Subscribers

As energy consultants, we often hear the question, “What’s the catch?” when discussing community solar. This question underscores the need to educate communities about state incentives designed to achieve net-zero carbon emissions by 2050.

Currently, the Environmental Protection Agency (EPA) has enacted shared renewable legislation, including community solar, in 24 states. This legislation often uses the Special Purpose Entity (SPE) model, where individual investors form a new entity to develop a shared renewable project. Once these solar projects are completed, utility companies connect to the solar arrays. As soon as the required number of subscribers is met, the energy generated flows into the grid, and the local utility compensates the solar provider for the energy produced.

Subscribers receive a portion of the dollar value generated by their community solar subscription as a credit on their utility bills. This process, known as virtual net metering, varies by state and project. By applying these credits to their monthly utility invoices, subscribers can reduce their bills. Solar developers, in turn, rely on residents and businesses to sign up and access the project’s energy production and revenue. These state incentives allow everyone to benefit economically from supporting local solar energy development.

One of the main challenges in enrolling in community solar is the availability of slots, which depends on local utility requirements, the specific solar project, and its capacity. Each solar field is designed with its own degree of flexibility.

By participating in community solar, subscribers enjoy the benefits of solar energy with minimal commitment. They receive solar credits without installing panels on their property, lower their carbon footprint, support the local economy, and save money on their electric bills. Power Management is committed to helping businesses and residents access these incentives to lower their monthly utility costs.