Community solar and business participation
Community solar programs let multiple customers share the benefits of a single, larger solar installation. Businesses can participate by subscribing to a portion of a community array, especially useful when rooftop space or suitable site conditions are limited.
How community solar works
- A larger solar farm or rooftop array is developed by a third party or utility.
- Subscribers purchase or lease a share of the project and receive bill credits proportional to their share of the electricity produced.
- Credits typically appear on utility bills and offset energy costs.
Business participation models
- Subscription: Businesses subscribe to a portion of the project and receive credit for their share of generation.
- Virtual net metering: Some programs enable virtual net metering so businesses receive credits even if the system is not physically connected to their meter.
- Direct procurement: Large businesses may offtake a significant portion of a community solar project's generation through a power purchase agreement.
Benefits for businesses
- No onsite constraints: Businesses without suitable rooftops can still access solar benefits.
- Cost savings: Subscriptions can provide predictable energy costs and potentially lower rates than utility supply.
- Sustainability goals: Participation helps meet renewable energy targets without on-site construction.
Considerations and due diligence
- Contract terms: Review subscription length, escalation rates, exit clauses and billing mechanism.
- Credit quality and developer: Evaluate the developer's experience and the project’s financial stability.
- Local rules: Participation depends on state and utility policies that govern community solar and crediting mechanisms.
Community solar expands access to renewable energy for businesses of all sizes. Review program specifics and compare the economics to on-site alternatives or corporate renewable procurement options.