How much can you save with community solar?

You’ve heard you can save up to 20% on your electricity costs simply by signing up for community solar. You’re ready to sign on the dotted line, but then you read the fine print and your head spins.  As your trusty energy advisor and community solar expert, we assure you: Community solar really is that good – it just takes some time to understand how it all works. Community solar is an alternative way to go solar, and fittingly, the billing structure and subsequent savings may look a little different than you’re used to. Let’s break down what you can expect to save by signing up.

Community solar farms are large solar projects that generate enough electricity to power several homes and businesses on the grid. Also known as community solar projects, community solar lets you subscribe to a share of the electricity from the solar farm at a discounted price to offset the electric bills you receive from your utility.

Community solar usually takes at least one billing cycle to impact your electricity bill, but you might not see savings immediately. When you subscribe to a share in a community solar farm, you aren't signing up for a set discount on your electric bill but on the energy you purchase from the project. Whether you have a fixed electricity rate structure or a fixed value on bill credits, the amount you save depends on how much energy the community solar project generates. Solar panels produce more power in the summer than in the winter, and your community solar bill will reflect that. 

Most community solar subscribers save between 5 and 20% on electricity costs annually. Through virtual net metering, community solar allows you to receive net metering credits for the electricity your share of the community solar farm produces. Like net metering for rooftop solar power, virtual net metering policies let subscribers receive the net metering credits associated with a renewable energy project installed at a remote location.

There are three different models of community solar: fixed discount on bill credits, fixed discount on electricity rates, and ownership. Your savings will differ depending on which kind of service you subscribe to. 

Fixed discount on bill credits

With a fixed discount on bill credits structure, you receive a discount of a set percentage on your electricity bill independent of how much electricity costs in your area. Most EnergySage Community Solar Marketplace projects offer a fixed 10% discount on bill credits. We'll get more into what saving looks like with this model below.

Fixed discount on electricity rates

With a fixed electricity rate structure, your savings will depend on how much your community solar company charges per kilowatt-hour (kWh) and your utility company's current electricity rates.

Ownership

This model lets you purchase a select number of panels or a portion of the community solar project. When you buy into a community solar project, you'll get electric bill credits from all the power produced by the solar panels you’ve invested in. 

Learn more about community solar subscription structures.

The community solar projects available through the EnergySage Marketplace are all fixed discount models. You receive a fixed (usually 10%) discount on the total value of the solar bill credits you purchase toward your utility bill. Here's an example:

In this example, your share of the community solar project generated $100 worth of electricity credits, which were sold to you at a 10% discount, resulting in a $90 charge on your community solar bill. All $100 of those credits were then applied to your $120 utility bill and subtracted from the total cost you were charged by the electric company, reducing your utility bill to only $20 and saving you a total of $10 on your monthly electricity costs. These savings may increase or decrease based on the season and electricity usage. To take a deeper look at your bills when you sign up for community solar, check out this article.

Remember, community solar will demonstrate its savings power over multiple months, and you'll be able to note your actual savings from community solar once you’ve been subscribed for a year. Solar power generally produces more electricity during warmer, sunnier months and has lower production levels during the winter. Community solar is not exempt from this. Your community solar credits may accumulate during the summer, but they will roll over month to month if you have more than you can use, and you’ll be able to use them during months when solar energy production isn’t as high.

EnergySage is the nation's leading online solar marketplace: using the EnergySage Community Solar Marketplace, you can compare local options, get a quick community solar savings estimate, and seamlessly subscribe to an open project in your area. Over 10 million people visit EnergySage annually to learn about, shop for, and invest in solar. Compare your community solar options today to see how much you can save.