© CNET. Community solar provides access to solar energy for people who, for one reason or another, cannot install solar panels on their roofs. Billy Hastas/Getty ImagesIn 2021, more than half a million solar projects were installed in the United States, the highest number ever. The Inflation Reduction Act of 2022 ended additional tax credits for solar energy projects (and incentives for other energy efficiency projects ). Industry groups predict that 13% of American homes will have solar panels by 2030.
Even with the added incentive, there are many reasons why you may not sunbathe now or at all. Even with long term savings you cannot afford it . You may rent your house or have no suitable roof or space for solar panels on the ground If you can't afford solar panels, you can still buy solar power through a system called solar communities.
If you live in a state that allows access to public solar power, you can subscribe to solar power generated by solar panels located outside your property. In states with competitive markets, local solar providers may offer general memberships to help you save energy.
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What is solar community?
Community solar is a fast-growing solar energy option when traditional solar power is gone. Instead of using electricity from solar panels located in or around the home, public solar customers receive electricity from (usually) large solar panels located nearby.
Public solar panels are typically owned by nonprofit organizations, other third-party organizations, or utility companies. Customers subscribe to pay for the electricity produced by these groups, often at a reduced rate.
When you sign up for a community solar program, your bill will look different depending on your community utility and solar provider. In some cases you will receive two invoices; In other cases, electricity generated from your community's solar quota will be added to your bill. It's also worth noting that your savings (typically 5% to 10% depending on your solar and utility plan) are usually seen within a year. Because your savings will fluctuate throughout the year.
In most of the United States, utilities operate as regulated monopolies. Unless otherwise required, only they can generate and distribute electricity in a particular area. For public solar to save consumers money, state legislatures must allow third parties to build and operate solar panels.
As of December 2021, 41 states have public solar installations, according to the National Renewable Energy Laboratory. Only 22 states and Washington have policies that promote solar energy.
It's in these states, where competition drives down costs, that people save money by switching, said Jeff Kramer, CEO of the Community Solar Access Coalition, a national organization that advocates for greater community solar access.
"[If] it's owned by a third party and built under a program where the government allows multiple parties to compete [...] it guarantees savings to consumers because you have competition in the market," Cramer said.
Not all community-reported programs return solar savings to customers. In states that don't have laws opening the playing field to third parties, utilities can offer community solar to customers, sometimes for a fee. In this case, the offer to customers aims to reduce their personal carbon footprint by subsidizing new solar or wind farms or accelerating the transition to renewable energy.
Why solar communities?
The most obvious and attractive benefit of utility solar power is energy savings. According to US Energy Information Administration data from 2020, a 10% savings on energy bills in the contiguous US could range from $96.29 in Utah to $193.86 in Connecticut per year. With a discount of up to 5%, Americans under 48 will save between $48.14 and $96.93.
Public solar offers these savings to people who can't afford rooftop solar: renters, low-income homeowners and those who live in shady areas. Connecting low-income people to public solar programs is one of the goals of the recently announced public solar subscription pilot program by the Biden-Harris administration. Some weak laws require a certain percentage of consumers to be low or moderate income.
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Community solar panels can be built on a larger scale (usually cheaper) in locations more suitable for solar energy production. Instead of placing panels on roofs that face non-ideal directions or cutting down trees to eliminate shade, universal solar panels can be placed in ideal locations. This could mean cheaper, high-efficiency solar power in an otherwise society.
Because community solar is not connected to rooftops, if someone moves to the service coverage area, they can take the service with them to the new address. Homeowners don't carry solar panels on their roofs (some studies suggest that this increases the sale price of homes).
Public solar grids and utilities can also benefit. Placing solar farms along with other energy sources on a grid can help stabilize the grid. Solar energy can help utilities comply with government-imposed restrictions on renewable energy.
Kramer of the Solar Public Access Coalition believes community solar can also create a sense of pride in local energy production.
Given the choice between 10 percent savings and 12 percent savings, someone might decide, "Actually, I'm going to choose the 10 percent savings because I pass it every day on my way to work," Cramer said.
There are many people who still can't use cheap public solar because they live in a state where it's illegal. However, utility solar power is expected to nearly double over the next five years, adding 4.3 GW.
