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What is community solar?
Community solar is a large solar farm or garden that supplies electricity to multiple customers. Residential customers, businesses, non-profit organizations, and other entities can join community solar. Electricity generated from a shared solar facility gets distributed to customers, also known as subscribers, through the power grid. Customers reduce their energy costs by receiving a credit on their monthly electric bills for the energy generated from their portion of their community solar system, typically located offsite. Community solar programs usually provide all the electricity needs of their customers. Electric utilities benefit from shared solar programs because they supply clean and affordable energy.
If you live in a rental home or cannot afford to buyresidential solar panels, but want green electricity, consider joining a community solar program.
Benefits of community solar
- Savings. Community solar can save you 10% off your electric bill.
- Affordable. All you need is an electric bill to join a community solar program, whether you rent or own your home. Some companies may also require a credit score check. The process of joining is generally easy, with minimal requirements and red tape.
- Support local jobs and the economy. Community solar facilities are typically located off-site from the customers they serve. By choosing community solar, you support the local workforce who build and maintain the facility and keep the money in the local economy.
- Cut carbon emissions. When you join a community solar program, your electricity is generated from a renewable energy source that doesn’t cause pollution and doesn’t contribute to climate change
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Community solar savings in Maine
Residential community solar customers in Maine save between10% and 15% on their electric bills. When you enroll in a community solar program, a solar developer will review your energy consumption over the past 12 months. This helps determine the kilowatts you need to balance your entire electric bill. Adopted in 2019, theNet Energy Billing (NEB) program in Maine provides two types of benefits for customers to offset their electric bills.
| NEB kWh Credit Program | NEB Tariff Rate Program |
| Residential, industrial, and commercial community solar participants in Maine receive kilowatt per hour credits equivalent to their utilities’ full electricity retail rate. | Non-residential customers get a dollar credit on their electric bill, equal to 75% of their transmission and distribution charges and service rates. Maine’s Public Utilities Commission, a utility regulating body, sets the tariffs annually. |
Community solar companies in Maine
There are several established and trusted community solar companies in Maine, such as Arcadia, Ampion Energy, Nexamp, and Common Energy.Arcadia is the largest manager of residential community solar programs in the U.S. Unlike some community solar companies, Arcadia doesn’t require a credit check to join a shared solar program. Arcadia works with your utility company to manage your energy usage, billing, and Renewable Energy Certificates (RECs) that you earn by using solar energy. Here is a step-by-step process to sign up with Arcadia.
- Step 1: Verify the availability of community solar in your area by entering your ZIP code and utility provider throughArcadia.
- Step 2: Set up your Arcadia account with your utility login details and payment information.
- Step 3: Monitor your energy-saving credits that Arcadia applies to your monthly utility bill.
Community solar vs. rooftop solar in Maine
There are significant distinctions between owning a rooftop solar system and joining a community solar program.
| Community Solar | Rooftop Solar | |
| Homeownership Requirement | Homeownership not required | Must own your home |
| Roof Condition | No specific roof requirements | Must have a west or south-facing roof in good condition with a 15 to 40-degree tilt |
| Cost | No upfront cost to join | High upfront cost |
| Savings | Immediate savings for the duration of the contract | Savings over the long-term |
| Accessibility | Available for low and middle-income households, often with no credit score requirements | Accessible for homeowners with good credit scores and the financial ability to buy solar panels. |
| Maintenance | No maintenance is needed — the owner of a community solar project is responsible for maintenance | Solar panel owners are responsible for cleaning and fixing their solar panels |
| Flexibility | No long-term commitment and no cancellation fee | Several years to reap financial benefits from investing in solar panels |
| Tax benefits | No tax benefits since a subscriber doesn’t own the solar system | Homeowners can apply a30% federal tax credit, known as the Residential Clean Energy Credit, on their federal tax returns when they purchase solar panels and install them on their property. There may be additional tax incentives specific to a solar system owner’s state. |
FAQs about community solar in Maine
A community solar contract length varies from company to company. Some community solar companies in Maine require a 20-year contract, while others have no fixed agreement. It’s vital to ask a community solar company about their contract terms before you join their program.
Not all community solar companies provide a consolidated bill, which is one bill that includes your electric utility charges and your community solar subscription. If your community solar provider doesn’t provide a consolidated statement, you will get two bills: one for your community solar use and another for your electric utility charges. It’s essential to research billing when you shop for a community solar program if you need to have a single bill.
Most companies have free cancellation clauses in their agreements with customers. Depending on the company, you may need to give a 60 or 180-day cancellation notice before ending your contract at no charge.
Arcadia has no cancellation fee with notice, but it may take about 90 days for your utility in Maine to complete the cancellation process. If you are moving, Arcadia can also help you find a new community solar project in your new location and transfer your account.
Community solar farms are typically located away from their customers’ homes. They are constructed on open fields, brownfields (previously used land), capped landfills, and roofs of large buildings (churches, warehouses, community organizations, etc.).
A community solar company serves as an intermediary between a solar farm developer and subscribers by handling customer acquisition and subscriber accounts. A solar developer pays the company for each new subscriber enrollment. The solar developer earns a profit from subscribers’ monthly utility payments. Solar developers will have more incentives to build community solar projects with the help of the Inflation Reduction Act (IRA), a 2022 federal climate law. The IRA will provide a 30% investment tax credit for solar developers together with a 10% adder and other federal grants for building solar projects in underserved and disadvantaged communities.