How subscriptions work; credits on your bill
Community solar lets you subscribe to a share of a larger solar array without installing panels on your roof:
- Subscription: You subscribe to a share of a community solar project (typically 1–5 kW).
- Credits on bill: Your share's production appears as credits on your utility bill, reducing your electric bill.
- No installation: No panels on your roof, no installation costs, no maintenance.
- Flexibility: You can typically cancel or transfer subscription if you move (terms vary).
Community solar is ideal if you can't install rooftop solar (renting, shaded roof, HOA restrictions) or want solar without installation.
Eligibility by utility/market; contract terms; escalators
Community solar availability varies by location:
- Eligibility: Must be a customer of participating utility. Some programs have income limits or waitlists.
- Contract terms: Typically 1–5 year contracts. Review cancellation terms and transfer options if you move.
- Escalators: Some subscriptions include annual rate increases (2–3%). Review escalator terms and compare to utility rate increases.
- Credit value: Credits typically applied at retail rate or avoided-cost rate. Verify credit value with your utility.
Check your utility's website or contact them to see if community solar is available in your area. Programs may have limited capacity or waitlists.
How to compare offers and avoid pitfalls
When comparing community solar offers, check:
- Credit value: How much credit per kWh? Is it at retail rate or avoided-cost rate?
- Subscription cost: Monthly subscription fee or upfront cost. Compare to expected bill savings.
- Escalators: Annual rate increases. Compare to utility rate increases to understand long-term savings.
- Contract length: How long is the commitment? What are cancellation terms?
- Transfer options: Can you transfer subscription if you move? Are there fees?
- Savings guarantee: Does provider guarantee minimum savings? What happens if credits don't cover subscription cost?
Compare total cost (subscription fees + escalators) to expected bill savings. Verify credit value with your utility. Read all contract terms before signing.
FAQ
How much can I save with community solar
Savings depend on subscription size, credit value, and your usage. Typical savings: 5–15% of electric bill. Compare subscription cost to expected savings.
Can I cancel if I move
Most subscriptions allow transfer or cancellation if you move, but terms vary. Review contract terms before signing. Some may charge fees for early cancellation.
Is community solar better than rooftop solar
It depends. Rooftop solar typically offers higher savings and ownership benefits, but requires installation and upfront cost. Community solar offers lower savings but no installation or upfront cost.