Solar power is an excellent source of renewable energy and an alternative form of power for most homes and businesses in the country. Unfortunately, solar panels can only be mounted on about 25% of houses in the United States. This means that not everybody can have their panels installed on their roof due to the type of rooftop they have or inadequate sun exposure. To solve this problem and allow more people to access solar energy, solar energy contractor like SEM Power are now setting up community solar energy sources across the country. This system works similarly to electrical energy transformers; in that, it stores the solar-generated energy and then distributes it to people in the community who can’t install a personal solar system or choose not to, but still want to have access to solar energy.
The power generated by a community solar system is usually shared by members of the community who installed the project.
What Are The Benefits Of Community Solar?
Community solar offers two primary benefits.
- It makes it possible for a large population to enjoy the benefits of solar power.
- It helps reduce the money spent on electricity bills monthly.
Virtual Net Metering (VNM)
Virtual net metering (VNM) is a policy that drives community solar and makes it possible to achieve. The policy is an agreement between the utility companies of a community and a state’s public service commission that enables users to use power from other sources of energy systems like solar and to transmit unused electricity back to the grid in turn for credits on their utility bills.
With virtual net metering, members of the community who participated in the community solar project will be able to reduce their cost on electricity and save some money.
Community Solar Participation Models
There are two main formats for community solar projects participation. These are; ownership-based projects and subscription-based projects.
Ownership-based Projects
The Ownership-based community solar models offer complete or partial ownership of the community solar project to the community involved. In this project method, the panels are owned by the community, and there will be no installation of any system on users’ roofs or property.
Subscription-based Projects
This is the most common option in the market today. In this kind of community solar project, the community doesn’t own the project but instead pays a certain amount to use the project. The payment made for access to the service is referred to as subscription fees. Subscription-based projects allow participants to subscribe to an existing solar energy project and pay their electric bills monthly.
Due to the different rules and regulations governing the use of energy and its distribution, the subscription method used by each state varies a lot. For instance, in some states, most subscribers get two bills, one stating the cost of their solar energy usage, while the other shows the amount of local electricity they have consumed for the month.
Importantly, before you can access a subscription-based project, you may be required to live a certain distance from where the community solar project is installed. This is usually done to ensure close monitoring of the solar energy users. Also, some providers may go as far as to set a limit on the amount of solar power each household can access monthly.
Community solar is an excellent option for a community of renters or shared apartments because it does not require one to have a suitable rooftop before you can enjoy solar energy. It is also a cheaper energy option because the entire membership of the community carries the installation burden. It is an effective way to offset your electricity bills as it is cost-effective. It is not only smart, simple, and cost savings; it is also green.
Community solar is found to be 20-25% more efficient than the ones mounted on the rooftop. Furthermore, the overall financial benefits that come from using the community solar system are pretty enormous, and to crown it all; they are not taxable!
With the numerous benefits associated with the use of community solar, it is evident that a lot of businesses and homes across the country will love to access this power source. Unfortunately, as of the present, very few locations are equipped with community solar infrastructure.
