Community Solar has revolutionized the way we think about renewable energy. Since the first community solar legislation was passed in the United States, 43 states have installed at least one facility. Education is becoming more critical as the renewable energy industry grows, and more businesses and homes can use it to save money.
The benefits of community solar are that it is affordable, accessible, and exciting for anyone who has an electric bill. The same question is asked by thousands of people from different walks of life: how does it work?
First things first: the physical structure
What is a Community Solar Farm?
Solar farms are aggregated large projects in which multiple homes or businesses have shares of the larger solar project. Developers nationwide are building farms as small as 350kW and as large as 150+MW. According to a general rule, 1MW can power 160 homes. An average 5MW site can power more than 800 homes and businesses.
Solar projects in this category are built and developed in areas with a solar resource north of 1200kWh/kW or 93-95% of the total solar resources available at that location. Community solar systems can be up to 15% more efficient than roof-mounted ones.
The developer builds a solar farm in a specific location. All the solar power from the farm is aggregated into one “host meter,” which helps the developer and utility track the farm’s output. The meter is connected to the grid just like any other power plant. You get credit for the percentage of your farm and a share in this total power production.
Remote Net Metering: Modern Digital Energy
You are thinking …” So, off-site solar energy plant. It makes sense. How can they ensure that I get the power produced by my panels on this farm? “.
We’ll ask one favor before we explain the process: forget about the electron.
There is no way, short of running a dedicated cable from the solar farm to your door, to ensure that every electron you use at home comes from your solar farm. It is physically impossible. It doesn’t matter.
One concept, Remote Net Metering, makes it possible to derive value from a Solar Farm.
Remote net metering is an agreement between a state’s public service commission and our utility companies. It allows customers to generate electricity using alternative energy sources, like solar, but then transfer it back to the grid for credit on their utility bill.
Energy credits are directly related to the energy production of a farm. Each state uses a different system to calculate the credits. For example, this method is known as the Value of Distributed Energy Resources (VDER) Value Stack in New York. These value calculators consider the cost of electricity, the environmental impact, and the demand-reduction value to calculate a rate.
The impact of community solar on residential and commercial clients is enormous. You can offset your electric bill with this “digital” energy and eliminate your electricity expenses. This type of metering allows you to maintain flexibility, as you can use solar in less-than-ideal places (think rental homes, shady locations) or transfer credits to your next home.
Your monthly expenses: The bottom line
Community Solar is an affordable, flexible, and cost-effective way to use solar energy to eliminate your electric bills. Remote-net metering may be a different way to deploy solar power, but the financial benefits of owning a piece of a solar farm can be very compelling.
In general, there are three ways that clients can access community solar: they can buy panels, sign long-term power purchase agreements, or subscribe to a farm via shorter subscription contracts. Many companies and developers are experts in a specific type of solar access. Renovus Solar, a company in New York State, offers customers three different options at one location. This gives customers the best deal.