Community solar vs. CleanChoice energy

While rooftop solar is a great way to lower your electric bill and support clean energy, it leaves out a key group: renters. According to the most recent Census Bureau data from 2019, renters encompass about 36 percent of households in the United States – and that number doesn't include homeowners who don't have complete control over their roof because they live in a multi-family dwelling. If you fall into this category, the good news is that solutions exist for you to support clean energy, and some will even save you money. In this article, we'll compare two alternatives to utility electricity: EnergySage's Community Solar Marketplace (herein referred to as community solar) and CleanChoice Energy's Clean Electricity (which we'll call Clean Electricity).

With traditional rooftop solar, you have to install solar panels on your roof physically – but with community solar, you can reap many benefits of going solar without altering your property! Community solar farms are large solar power plants owned and operated by solar developers. The renewable energy these farms produce is distributed throughout the grid, and subscribers purchase a share of bill credits for this energy, which offsets their monthly electric bill. On the EnergySage Community Solar Marketplace, all you have to do is enter your zip code, and we'll show you a list of open community solar farms in your area, which you can compare to find the best solution for you. We don't act as a third-party electricity supplier; we help connect you directly with a solar provider.

If you live in a deregulated electricity market, you might be eligible to purchase electricity through a retail energy provider (REP) that isn't affiliated with your utility, such as CleanChoice Energy. Essentially, these REPs act as third-party electricity suppliers and offer "green," "eco-friendly," or "clean" energy plans. When you subscribe to one of these plans, you're purchasing renewable energy certificates (RECs) associated with generating renewable electricity, allowing you to claim the environmental benefit of that electricity. If you use CleanChoice Energy as your REP, 100 percent of the electricity you consume is offset by energy from wind and solar projects.

While both alternative energy options will allow you to support renewable energy, they differ in some fundamental ways. For a more in-depth overview of the differences between various alternative energy sources, be sure to check out our article on comparing community solar to clean choice aggregation and green power plans (like CleanChoice Energy) – but below, we'll go into detail about the differences between EnergySage's Community Solar Marketplace and CleanChoice Energy's Clean Electricity:

1. Cost savings

The cost is probably the biggest – and most important – difference between community solar and Clean Electricity. Generally, with community solar, you can expect 5-15 percent savings on your annual electric costs. On the other hand, with Clean Electricity, you'll probably pay more than you currently do for electricity.

Let's use my home as an example. I rented an apartment in Somerville, MA, and in October 2021, I paid $47.27 to my utility (Eversource) for electricity.

Looking at my bill, you'll see I have two main categories of charges: supplier and delivery. The supplier charges cover the cost of the electricity itself, whereas the delivery charges cover the costs of bringing the energy to your home.

Over the month, I consumed 174 kilowatt-hours (kWh) of electricity at 10.519 cents per kilowatt-hour (kWh), totaling $18.30 for my supplier charge. My delivery charges added up to $28.97 for a total bill of $47.27. If we assume I use 174 kWh every month, this equates to $567.24 annually.

When I enter my information for CleanChoice Energy's Clean Electricity, they quote me 18.4 cents/kWh – according to their website, this cost covers both supplier and transmission charges – which amounts to $32.02 for the entire month. So, looking at my bill, this would cover the $6.13 for my transmission charge, plus the $18.30 for my supplier charge, meaning on top of the $32.02 I'd owe to CleanChoice Energy, I'd still owe $22.84 to my utility for distribution charges. This adds up to $54.86 monthly or $658.32 annually: a $91.08 premium above what I currently pay to my utility.

On the other hand, when I go through the EnergySage Community Solar Marketplace, I can see that I'm eligible for two different community solar farms, both of which include offers for a fixed 10 percent discount on my bill credits, which generally amounts to 5-15 percent in annual savings on my electric bill. These savings are estimated annually because your savings will fluctuate month-to-month depending on how much electricity the community solar farm generates (expect greater savings during summer and potentially pay more during winter). I'll save at least 5 percent annually with community solar. Doing the math means I'd pay $538.88 annually for electricity.

Cost example for a rental in Somerville, MA

2. Support for local renewable energy

Another thing you might want to consider when comparing community solar and Clean Electricity is the local environmental benefit. In the case of Clean Electricity, the actual renewable energy generated to back the RECs you're buying might not come from your state. So, while you'll still be supporting the development of renewable energy, it might not benefit your local community in terms of air quality and job growth.

However, with community solar, you can be sure that the electricity generation that you're supporting is directly helping your community. Through our Community Solar Marketplace, you'll see precisely where your community solar farm is located – and it will be in your area, driving the development of lower-emission energy sources and job opportunities locally.

3. Billing

If you subscribe to a community solar farm, you'll likely receive two bills: one from your community solar provider and one from your utility company. Your community solar bill will include charges for the energy generated from your portion of the solar farm. Your provider will then coordinate with your utility company to apply credits for the power you bought from the solar farm to your electric bill, reducing your overall cost.

In the case of Clean Electricity, you'll receive just one bill from your utility and will see CleanChoice Energy listed in the supplier charge category of your bill. Thus, you'll have consolidated billing with CleanChoice Energy.

4. Location & availability

If you're looking to switch to a clean energy source, you'll want to ensure that: 1. the source you're choosing is available in your area, and 2. it's available in your preferred time frame. As of November 2021, our Community Solar Marketplace has 12 states with community solar farms – however, it's important to note that you may or may not be eligible for these farms depending on your location or utility company. You also may need to wait a few months for a solar farm to launch before you start seeing credits (and savings!) on your electric bill.

With CleanChoice Energy's Clean Energy, you'll typically see CleanChoice Energy listed on your utility bill within one or two billing cycles of signup. Their Clean Energy is currently available in nine states – but similar to community solar, you may or may not be eligible depending on your utility.

States with available alternative energy plans (as of November 2021)

5. Clean energy benefit

While you support the development of clean energy with both community solar and Clean Energy, in both cases, your home isn't powered by clean energy – as in, the supply of electricity flowing into your outlets likely still consists primarily of fossil fuels. However, you purchase the RECs with Clean Energy, so you can technically claim your home is powered by renewable energy. On the other hand, with community solar, unless your contract specifically states that you own the RECs from your share of the solar farm, it's safe to assume you can't claim the environmental benefit of that electricity.

One of the biggest grievances with third-party clean electricity suppliers, such as CleanChoice Energy, is the lack of transparency with the plan. In 2021, the Office of Massachusetts Attorney General Maura Healey released a report analyzing if Massachusetts consumers benefit from these competitive electricity suppliers. The report found that these types of plans prey on elderly and low-income residents and, on average, result in them losing $241 annually. According to the report, other participants lose an average of about $194 annually.

Participants in these plans paid $426 million more between July 2015 and June 2020 than if they had stayed on their utility plan. In an interview with the Joint Committee on Telecommunications, Utilities, and Energy, Healey stated, "I can't sit here today and tell you that this industry brings any benefit to residential customers." In response to the report, state senators and representatives introduced legislation to bar these third-party electric suppliers from signing up new participants in Massachusetts. The ruling has not passed, but if it does, CleanChoice Energy's Clean Electricity would no longer be available to Massachusetts residents.

Community solar is an excellent option for anyone who can't or doesn't want to install solar on their property. Are you thinking about subscribing to a local community solar farm? On the EnergySage Community Solar Marketplace, you can compare the available farms in your area and quickly estimate your potential savings.