Definition

Mid-sized solar projects (e.g., up to 2MW) sited within the customer’s utility service territory and connected to the distribution grid. The output of the solar array is divided among multiple subscribers, who receive utility bill credits for their share of the energy production. Typically, the utility or a third party develops and maintains the plant on behalf of the subscribers. Community Solar is a subset of Community Renewable projects that cover a larger set of renewable resources.

Also known as Community Shared Solar, Shared Solar

Description

Community solar allows consumers to get solar energy even if they are not able to install on-site solar on their property (e.g., as is the case with renters or those without viable rooftops for hosting solar). Community members can purchase shares of the system directly through an upfront payment or pay monthly for a specified level of output of the project. They can then receive monthly bill credits for their share of the project. For local governments to take advantage of this option, the state must have an established community solar policy or the utility must offer their own program. Some states require that a portion of the output (e.g., 5-10%) must be set aside for low- and moderate-income participants. Similar to community solar, some states have passed virtual net metering legislation, which enables the output of a solar facility to be credited to multiple customers or facilities. Customers can sign a contract with a solar facility that is not located on their property but still receive the same financial benefits (i.e., bill credits) from the utility as though it were on their property.