What is Community Solar?
Community solar refers to a solar energy program where multiple customers—such as individuals, businesses, nonprofits, and other groups—can benefit from a shared solar installation. Unlike traditional rooftop solar systems, community solar allows participants to subscribe to or own a portion of the energy generated by an off-site solar array. These solar projects are typically located in areas that may not be suitable for individual solar panel installations, such as rented homes or buildings with unsuitable roofs or electrical systems.

Community solar provides an ideal solution for people who cannot install solar panels on their property due to various reasons, including cost, roof condition, or being renters. Participants in community solar programs receive bill credits for the energy generated by their share of the solar system, which helps reduce their monthly electricity costs.

The Rise of Community Solar
Community solar is rapidly growing across the United States, offering an alternative to traditional solar installations. According to the National Renewable Energy Laboratory (NREL), the number of community solar projects is increasing as more people discover its benefits, such as lower energy bills and greater access to renewable energy.

How Does Community Solar Work?
Community solar projects generate electricity by harnessing sunlight through solar panels. The generated electricity is then transmitted through a meter to the local utility grid. Subscribers—households, businesses, or other customers—pay a monthly subscription fee for a portion of the electricity generated by the solar project.

The local utility company compensates the community solar provider for the energy generated, and subscribers receive a credit based on the value of the energy generated from their share of the system. This credit is typically applied directly to the subscriber’s monthly electric bill, which reduces their overall energy costs.

For example, if a household subscribes to a certain percentage of the solar array’s output, they will receive a monthly credit equivalent to their share of the energy produced, helping to lower their electric bill.

Why is Community Solar Important?
Community solar makes solar energy accessible to a broader range of customers, especially those who might not be able to install solar panels on their roofs. This includes renters, homeowners with shaded or unsuitable roofs, and individuals unable to afford the upfront cost of installing a solar system.

The benefits of community solar are clear:

• Lower Electricity Costs: Consumers can save money on their monthly electric bills, especially in areas where solar power is cheaper than fossil fuels.
• Resilience: Community solar systems offer energy reliability during power outages and extreme weather events.
• Job Creation & Economic Growth: These projects can create local jobs in the solar energy sector and contribute to community wealth-building.
• Environmental Impact: Community solar encourages the use of renewable energy, reducing dependence on fossil fuels and decreasing carbon emissions.

Consumer Protections in Community Solar Programs
Consumer protection is vital in ensuring that community solar programs provide the promised benefits to subscribers. It’s important for these programs to include clear terms and protections for consumers, especially those from low-income households. Some key consumer protections include:

• Bill Credit Guarantees: Subscribers should receive a bill credit that results in at least 20% savings on their household electricity costs.
• No Hidden Fees: Community solar contracts should not include exit fees, termination fees, or sign-up charges.
• Transparent Contracts: Clear, easy-to-understand documents should be provided to consumers before they subscribe, including details on how the subscription works.
• Complaint Mechanisms: A process for filing complaints or addressing issues should be available to ensure subscribers’ rights are protected.

Consumers should carefully review the terms and conditions of their community solar contracts and check their state’s requirements for consumer protections to ensure they are receiving full, transparent benefits.

Community solar represents a transformative approach to renewable energy access. By enabling individuals and businesses to subscribe to solar power without the need for individual installations, community solar expands the reach of clean, affordable energy. With strong consumer protections in place, this model ensures that solar power can contribute to both economic savings and environmental sustainability for communities across the country.