Solar energy — clean, powerful, and increasingly accessible — promises a revolution in the energy market. However, installing solar panels on rooftops is not always possible or economically viable. This is where a community solar project comes into play, offering an innovative way to unite communities and harness the benefits of solar energy collectively.
According to the Pew Research Center, one-third of Americans understand the potential of alternative energy sources, including solar and wind.
Source: Pew Research Center
But what are the benefits and challenges of solar panels projects? Is it possible to obtain shareholder capital in the region’s energy system? In this article, Solar Power Systems specialists will provide answers to these questions and discuss how community solar works and the stages of its creation.
Stay with us and find out how it will change the energy future of the USA.
The USA, with giant strides, is confidently moving towards its goal of becoming energy independent, aiming to generate an average of:
Source: U.S. DEPARTMENT OF ENERGY
Community solar energy provides an apt solution. It enables individuals to collectively own and benefit from a shared solar power station.
Even if you have all the means to buy a solar system but want to join a community solar project for other reasons, you can do so. The combined efforts of many homeowners will gradually transform the area into a solar oasis.
Furthermore, the idea of community solar energy addresses societal dilemmas such as economic inequality and energy security.
The pleasant advantage of belonging to solar energy communities is that your role is simplified. As a client, you invest and anticipate specific returns — namely, the provision of electricity generated through solar panels.
Source: Environmental Law & Policy Center
The developer builds a large solar power station in your community. The station generates energy from sunlight and sells it to the utility, feeding into the local grid.
As an individual, you sign up for the community solar project, typically buying a share of the power station’s capacity and becoming a subscriber. It’s akin to buying shares in a company. Owning them entitles you to a portion of the generated electricity.
Once the power station is up and running, the utility monitors the electricity output from your share and credits the corresponding amount to your account. These credits effectively lower your overall expenses for electricity. As a result, you have energy, save money, and don’t have to worry about solar panel maintenance or repairs (that responsibility lies with the developer).
The revolutionary path to cost savings and environmental protection is possible through a community solar project. Enjoying the benefits of community solar is one thing, but to understand all the processes, let’s explore how it works.
The success of the concept depends on careful planning, coordinated teamwork, and active community involvement. By uniting residents of neighborhoods and then cities into a single solar-powered community, there is a chance to transform a specific state into an energy-independent and eco-friendly entity.
Although anyone can join a community solar project, for certain groups of people, it’s a lifesaver. Here are a few cases when it’s beneficial and necessary to become a participant:
Roof-mounted solar panels | Firstly, inconvenience may be tied to housing type, such as residing in a multi-unit or rental property. In the former, individual roof access is unavailable, while in the latter, landlords may disapprove of solar system installations, and it’s not financially beneficial for you to equip someone else’s house.
Secondly, even if you own a house, the type of roof may be unsuitable for installation — having many bends, windows, protrusions, etc. |
Ground-mounted solar panels | A solar system requires a lot of space in the yard. It should be a fairly spacious empty plot, preferably without additional buildings and trees that may obstruct direct sunlight on the panels. |
Community projects allow you to receive credits for electricity. Each participant has the right to use them to offset their utility bills. Thus, you remain in the black — having an uninterrupted electricity supply and saving money. On average, savings amount to 5-15% per month. It can be more depending on the size of the investment, local energy tariffs, etc.
The community solar project is simpler and cheaper because a lot of issues are handled by the operating company. They conduct research and select suitable equipment, obtain all necessary permits, and carry out system installation and monitoring. Meanwhile, you receive electricity without additional costs by purchasing a share in the solar power station.
Solar energy is a clean energy source, untainted by fossil fuels. Being a project participant, you power your devices or light your house with the sun and automatically contribute to reducing your city’s/district’s dependence on gasoline, gas, oil, etc. Moreover, community solar projects often belong to and are managed by local companies, so your contribution helps support the state’s economy.
Historically styled houses, like Victorian homes, possess distinctive aesthetic features that risk being compromised during the installation of solar panels. The visual dominance of these panels can disrupt architectural harmony.
In some areas, there are zoning rules that regulate the external appearance of buildings to preserve visual unity. However, usually, community solar companies take care of such matters.
According to the Global Market Outlook For Solar Power 2023-2027, the Community Solar sector currently has little demand compared to utility, residential, and commercial solar panels. The gap is clearly visible on the chart.
Source: Solar Power Europe
Although community solar energy offers broad access to solar power for all Americans, there are certain obstacles to its development, including:
However, despite the obstacles, there are opportunities for the development of a solar community:
1. Reduction in the cost of solar panels. This has been the case for many years and is a significant step forward in the development of community solar energy.
Source: Our World In Data
Based on Our World In Data estimates, the price has decreased from $100 to $0.5 over 50 years, and the total capacity of one panel has increased.
2. Government support. The U.S. government aims to maximize electricity generation as part of its ambitious decarbonization goal, aiming to substantially reduce emissions by 2050.
Source: Energy.gov
States offer local incentives and grants to support the development of community solar energy. This will reduce dependence on fossil fuels and make society more resilient to fluctuations in energy resource prices.
3. Economic benefits. Solar projects, in addition to saving money for participants, have significant economic advantages for the local community solar.
It depends on individual circumstances. First, determine if a community solar project is available in your region/city. Then, calculate the amount of electricity you use. We recommend comparing prices for community energy and traditional energy and exploring different subscription options. If unsure whether to join the project, discuss the details with an energy consultant.
Asserting that solar energy is the future, we’re not just throwing words around. SEIA expects that the solar energy market will triple by 2028. So, we can anticipate that community solar energy will save money and provide uninterrupted and clean energy to millions of Americans’ homes.
A community solar system is a power station that generates energy from solar panels and distributes it among participants in the community solar program.
It can have different owners. Private companies and non-profit organizations build and own them, selling electricity. If the owner is a municipality, the idea of building a community solar station is based on a desire to provide its residents with clean energy.
Accordingly, the sources of financing are different.
Regardless, to safeguard the invested funds and efforts, the developer must secure willing subscribers. If you are within the service area of a specific community solar station, you can take on this responsibility.
So, imagine that you have signed up for a local community solar project and paid for a certain number of panels. Now, they generate energy and supply it to the city or district grid, and you regularly receive electrical energy.
If desired, you can cancel your subscription by notifying the information center of the power station’s owning company. Please note that sometimes you may need to give a 3-month notice for cancellation.
In addition to supplying electricity to meet your household energy needs, a solar power station allows you to receive monthly credits for the energy produced by your share of panels:
Ultimately, becoming a subscriber to a community solar power station is a wise decision that ensures the development of solar autonomy for the city/region.
It may seem that the United States’ inclination towards sustainability in green energy production began relatively recently. However, as far back as 2008, Massachusetts took the first step towards solar energy at the state level. The state government officially adopted a decision allowing and regulating the activities of solar power communities.
NREL says that as of 2022, more than 20 states, including the District of Columbia, have joined Massachusetts in this endeavor.
Source: NREL
Community solar energy is expected to continue to develop further, given its current pivotal role in the transition to a sustainable energy system. This evolution is attributed to various factors, such as the declining costs of solar panels, rising demand for clean energy, and a more favorable attitude towards the idea of a community solar project by the government.
In states where legislative authorities have not yet passed bills permitting the use of energy for community solar, the progression toward renewable energy is being impeded. It turns out that even if people want to participate in a community solar project, they do not have the legal opportunity to do so.
A logical question arises: Why is the government delaying the coordination of legal matters when it sets goals for achieving independence from fossil fuels as quickly as possible? The answer is resistance from municipal structures. They do not want competition in the energy market, where they hold a dominant position, and strive to maintain control over their service territory.
Indeed, if solar power plants provide city residents, and later the entire state, with free energy, the revenues of municipal enterprises from its sale will significantly decrease. This unpleasant prospect motivates lobbying for the adoption of appropriate laws to protect their interests.
Transitioning to community solar energy is possible but requires efforts from all stakeholders. Americans, when united, can tilt the balance in their favor.
What actions can you take today?
Support the passage of laws | This is one of the most effective ways to help. Local legislators need to know that their constituents support the idea of community solar energy.
There are numerous ways to express support, such as:
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Inform friends | Let’s recall the famous Latin adage: “Knowledge is power.” And it works: the more informed people are, the more attention is paid to the problem, and the higher the chances that measures will be taken to solve it. Therefore, you have the option to:
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Invest in community solar project | Funds are often the stumbling block for potentially successful projects. Lack of sufficient resources can stop the process at the stage of generating the idea of creating a community solar farm. Therefore, if you have the opportunity, invest in and purchase electricity from suppliers that support community solar energy. |
Overall, any efforts aimed at developing a solar community will be beneficial. Only through coordinated joint efforts is it possible to create a new energy future for the United States and the planet.
Community solar energy is not just an alternative energy supply model; it’s a catalyst for change. Thanks to it, everyone can take control of their energy destiny, pool resources, and invest in a clean and environmentally friendly energy source for solar-powered communities.
Solar projects offer residents, businesses, and local authorities a unique opportunity to move toward a sustainable, decarbonized future. Subscribers of a community solar project can save money, reduce CO2 emissions, achieve energy autonomy for the area, and foster new environmental awareness — all of this is open to them!
The Solar Power Systems website provides more reliable and up-to-date information about everything related to solar systems in the USA.
Community solar programs aim to make solar energy accessible to people who cannot install their solar panels. People from one service area come together and collectively invest in a solar power plant, later receiving credits on their utility bills for electricity and contributing to environmental protection.
Community solar companies take on organizational and legal responsibilities and monitoring. They develop, finance, build, own, and operate solar power plants that serve multiple consumers. Some of the most prominent ones include Arcadia, Nexamp, Perch Energy, and Solstice.
Almost anyone can become a subscriber, except for residents of multi-unit buildings without their own roofs, renters, and homeowners living in states where community solar programs are not operational.
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