Solar power is becoming an increasingly popular option for homeowners. If you’re interested in accessing solar power but concerned about the upfront costs, consider participating in community solar.
Community solar offers amazing money-saving and environmentally-friendly advantages. Read this beginner’s guide to understanding community solar to recognize whether it’s the ideal option for you and your home.
What is Solar Power?
Solar power involves converting energy from sunlight into electricity. Solar power is a free, renewable, clean form of energy offering numerous financial and environmental benefits.
Solar power creates electricity using three primary methods: PV (photovoltaic processes), SHC (solar heating and cooling), and CSP (concentrating solar power). PV generates electricity using PV devices, primarily solar panels, to harness and convert sunlight. SHC transforms sunlight into thermal energy for heating and cooling. Lastly, CSP stores solar power in turbines or steam engines to produce electricity.
What is Community Solar?
Community solar refers to a group of people sharing electricity generated by solar power. Other names for community solar include shared solar, energy sharing, and solar farms or gardens.
Community solar projects are funded and operated by third parties, generally private businesses or utility companies, who elect to install numerous solar panels in a certain area. Electricity produced at the solar farm is delivered to the power grid and distributed by the utility company to homes and businesses. Members of the community are able to join community solar projects by simply subscribing to the service.
The Billing Process
Community solar members participate in a billing process known as virtual net metering. Net metering is a billing system used for crediting solar power system owners for the electricity they contribute to the grid. Virtual net metering operates similarly to credit members of community solar; however, the process occurs virtually because solar power systems aren’t installed on an individual’s property.
As a community solar member, you continue to receive monthly electric bills from the utility company. Additional solar power produced by your share of solar panels is added to the power grid. The utility company pays you for the electricity by adding solar credits to your bill, which are subtracted from your total expenses to reveal a reduced amount.
Advantages of Community Solar
Community solar provides amazing advantages for participants.
Earn Monthly Savings
Earn monthly savings by joining a community solar project. As previously mentioned, shared solar members use virtual net metering, which significantly reduces monthly utility expenses. Potentially, solar credits can eliminate your electric bill depending on your energy production and usage. Community solar members receive guaranteed savings of usually 10%, allowing easier budgeting and greater savings.
Bypass Installation Costs
Bypass installation costs by switching to community solar. Solar power systems are expensive investments, costing about $10,000 to $25,000 depending on a system’s size. Community solar projects are funded by third parties, meaning you skip installation costs and upfront fees to easily access solar power on a budget.
Improve the Environment
Improve the environment by harnessing solar power. Traditional forms of electricity, specifically fossil fuels, emit carbon dioxide and other harmful gases, polluting the atmosphere and causing global warming. Solar power provides a green alternative to reduce your carbon footprint by avoiding releasing dangerous pollutants. Community solar assists you in improving the environment on a larger scale to guarantee a better future.
Easy Enrollment Process
Community solar offers an easy enrollment process for anyone interested in switching to solar power. Simply locate a program near you and click a couple of buttons to instantly sign up for community solar.
Disadvantages of Community Solar
Community solar also presents a few disadvantages. Drawbacks of community solar include:
- Limited Accessibility: Accessing community solar requires being located near a project, but community solar opportunities continue to increase with projects available in 39 states.
- No Tax Incentives: Solar power system owners are eligible for tax incentives for reducing installation costs; however, community solar participants don’t qualify for solar tax incentives because they bypassed installation costs and ownership responsibilities.
The disadvantages of community solar are easily outweighed by the amazing advantages, specifically financially.
Find a Community Solar Opportunity
Find a community solar opportunity to immediately access the wonderful financial and environmental benefits. Research community shared solar projects near you to locate a perfect option.
Review the process and advantages of community solar to understand whether it’s the perfect option for you and your home.
