What happens after you sign up for community solar?
First comes the waiting period, then comes savings.
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It’s official: You’ve secured your spot in a community solar project and are excited to start saving on your energy bills. But unlike rooftop solar, there’s no installation to schedule or permits to apply for. So, what’s next?
Depending on the program, it might be a “hurry up and wait” scenario: Many community solar companies fill new projects with subscribers before breaking ground. Even if you join a solar farm that’s already up and running, it typically takes a month or two for the changes to start appearing on your utility bill.
Let’s explore what to expect when getting started with community solar, the billing process, and how to transfer or cancel your subscription if needed.
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Key takeaways
There may be a waiting period after you sign up for community solar. Many community solar companies fill new projects with subscribers before actually building the solar farm.
Once your program goes live, it’ll probably take a billing cycle or two for your credits to show up on your bill.
Most community solar subscribers save 5-20% on their annual electricity costs.
You can usually transfer or cancel your community solar subscription if you move.
Community solar offers you a way to go solar without installing panels on your roof or paying those hefty upfront costs. It’s a great option for renters, condo owners, or anyone who may be locked out of the rooftop solar market. It works like this:
A large-scale solar array, also known as a solar farm, produces a bunch of solar power. You may have seen one of these farms on the side of a highway or on top of a closed landfill.
The power generated by the solar farm is fed to the local grid, effectively reducing the utility’s carbon footprint and reliance on fossil fuels.
Residents and businesses serviced by the cooperating utility can subscribe to the community solar farm to offset their electricity bills. Each subscriber is assigned a portion of the solar farm based on their historic power usage.
Every month, subscribers pay the community solar company for their share of the generated electricity, but at a discounted rate compared to the utility company’s prices (usually it’s around a 10% savings).
Subscribers receive credits towards their monthly electric bill for the energy their community solar share generates, reducing what they owe the utility company.
In the end, community solar subscribers typically save 5-20% on their annual electricity costs, while also supporting renewable energy sources.
You’ve compared your options, selected a community solar project, reserved your spot, and signed on the dotted line. Now what?
First thing’s first: Your provider will size your share
Once you’ve secured your spot in the project, your community solar provider will review your electricity bills to determine the size of your share. The goal is to match your electricity consumption to a portion of the community solar farm; an undersized share leaves savings on the table, while an oversized share could result in you paying for credits you may not use.
If you intend to further electrify your home with things like heat pumps or an electric vehicle charger, you can ask your community solar company to adjust the size of your share to meet your changing energy needs. Just keep in mind that depending on the regulations and policies where you live, you may be limited on how much and how often you can tweak your project share.
The waiting period: It’ll take a billing cycle or two before you see savings
Many community solar projects “fill” the project with subscribers before even breaking ground on construction. If this is the case for you, you’ll have to wait until the solar farm is built and “turned on” before you start saving.
Once your community solar project is live, it still might take a billing cycle or two for your savings to show up on your electric bill. Your community solar provider should communicate the timeline of your specific project and when you can expect to start to see those credits roll in.
Community solar isn’t available everywhere (yet). States must enable community solar programs through legislation, but even if you live in a community solar state, there may not be any open projects in your utility area. What then?
You can sign up for emails notifying you when new projects pop up in your area. Luckily, community solar is constantly growing: 41 states and counting have at least one community solar project. EnergySage is here to connect you with projects as they open up in your neighborhood through our Community Solar Marketplace.
We’ll admit it: Community solar billing isn’t the most intuitive process. You typically receive two monthly bills: one from your community solar provider and another from your utility company. One consolidated bill would be ideal, but for now, this is the typical community solar billing breakdown:
Your community solar bill includes charges for the energy generated from your share of the solar farm. You pay for this solar electricity at a discounted rate compared to utility prices.
Your utility bill reflects your monthly electricity consumption minus the credits you earn from your community solar share.
Example: Your community solar share generates $100 worth of electricity. You receive a 10% discount as a subscriber, resulting in a $90 community solar bill. Your community solar credits are reflected on your utility bill, bringing what you owe down by $100 (but remember, you only paid $90 for those credits!). You save a total of $10 this billing period.
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Solar panels produce more electricity in the sunnier months than in the darker winter months. Since your community solar savings depend on how much power your share produces, your electricity usage and community solar credits won’t always match up.
There will be months when your community solar share produces more electricity than you consume, and there will be months when your community solar credits fall short. Luckily, unused credits roll over from month to month; you can use credits earned in the summer to offset your winter bills when solar generation tends to be lower.
Solar panels last up to three decades, so there’s a good chance you might move before your community solar program sunsets. Every program is different, but you can usually transfer or cancel your subscription when you move.
Albeit confusing at times, community solar is a low-risk, low-effort way to benefit from solar energy. You get to save some money on the electricity you’re already using (win), you don’t have to invest a bunch of money upfront (win), and you contribute to a cleaner local grid for your entire community (win). Sure, you’ll save more money in the long run with a rooftop solar panel system, but for folks who can’t or don’t want to install solar panels at their homes, community solar is a solid option.
- 100% free to use, 100% online
- Enjoy 5 - 20% off your annual electricity bill
- Unbiased Energy Advisors ready to help
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