Community solar projects allow homeowners, renters, and businesses to go solar without installing solar panels on their roofs. They also lower electricity bills and increase renewable energy production.
However, starting a solar community project requires a lot of work. Getting a project off the ground can take up to two years. This is mainly due to delays in permitting and siting.
You Need a Location
Community solar projects are an excellent way for people to participate in the renewable energy revolution. Not only does it help them save money on their energy bills, but it also benefits the environment and strengthens the grid.
Now, how to start a community solar project? There are many community solar programs, but they all share the same goal: to provide residents access to clean, affordable power. Unlike traditional solar installations that require owning your panels, community projects allow you to subscribe to a solar farm. You’ll receive credits on your electricity bill for the energy produced.
A private business or a utility can own a project or be developed as a community effort. When a project is designed as a community effort, it may be led by a group of residents or by a nonprofit that is looking to get more solar installed in the area.
Typically, a solar community project is a small solar array built on capped landfills, open fields, or warehouse roofs and connects to the existing electricity grid. It usually ranges between 0.5 and 10 megawatts in size, and it’s one of the best ways for utilities to meet their state’s renewable portfolio standards.
Unlike traditional solar installations that require you to pay an up-front investment, community projects allow people of all income levels to participate. They can even be located in disadvantaged communities that typically have lower-income residents, and they reduce pollution by replacing dirty fossil fuel plants with local clean energy.
You Need a Developer
A developer is a person who secures a location for a community solar project and brings together the financing to make it happen. They also work with subscribers to set up a lease or power purchase agreement for them to participate.
The developer may be a utility or a private company that acts as the sponsor for the project. In either case, the sponsor must secure enough interest in the project to make the project financially viable over time.
For large businesses and nonprofits, the role of the sponsor is typically more complex. They may need to act as developers. Still, they often take on a more significant role as the project or subscriber manager to bring in additional revenue and gain some control over the subscriber model they offer their customers.
Whether a utility or a private developer sponsors the project, it’s essential to understand the challenges associated with the solar community model before starting a project. These challenges include knowing state laws regarding virtual net metering and other policies, managing expectations about who benefits from incentives and applicable tax credits, and being sensitive to potential issues surrounding project ownership and governance issues.
Many utilities, developers, and large power users nationwide are choosing to build or partner with solar community projects. These projects provide various benefits to consumers, including access, flexibility, and support for renewable energy. They also help communities become more sustainable, lower emissions and save money.
You Need a Group of Subscribers
When you start a solar community project, you need a group of subscribers to make it work. This can include individuals, businesses, municipalities, nonprofits, and anyone with an electric meter in the same utility territory as the project.
To get a project started, a solar developer works with the site owner (or land) to identify a good location for a solar array and find customers who can help finance the project. This lengthy process can take several months before the project generates electricity.
Once a project is built, the owner invites subscribers to buy shares called “subscriptions.” The solar farm owner then manages each subscription and ensures all members are happy with their experience.
This solar model is gaining popularity, with at least 41 states and DC having at least one community solar project online. Its growth is driven by enabling legislation and policies that encourage more people to participate in community solar, which will add more than 4.3 gigawatts of solar capacity through Q3 2022.
Subscriptions save subscribers money every month on their electric bill by getting credit for the energy produced by the solar array. While the exact savings depend on the solar community project, and the state, they typically average between 5% and 10%.
You Need a Turn-On Date
When it comes to solar, the timing of your project is critical. Delays in permitting, construction, and electric utility connections can last a year or more. Fortunately, these delays have been smoothed out over the past few years.
Getting a suitable turn-on date is a challenging feat, but a few tricks are up your sleeve to help you out. One of the most important is to use a good aggregator (see our list below).
The aggregator will be able to provide you with a wide variety of projects so that you can compare them all and choose the best fit for your needs. This can be as simple as a zip code search, or you can get more involved by using the site’s advanced filtering features to find your ideal project.
In addition to a slew of projects, the aggregator will also be able to provide you with helpful information about each one. This can include details about the project’s environmental impact, location, and billing info.
Lastly, the aggregator will be able to tell you which is the best way to start your community solar project. Depending on your preferences, the aggregator may recommend an ownership- or subscription-based model. In the case of a subscription-based model, you can choose to become a subscriber and purchase electricity from the project at a lower rate than you would pay your utility.
