Community Solar and What it Means for New York

With the rise of renewable energy’s popularity, New York started using community solar as an easy and accessible way for residents or businesses wanting to get involved. This model lets multiple customers benefit from just one solar farm, making it easier to get renewable energy if you’re unable to install solar panels on your roof.

This initiative is one of New York’s biggest strategies to reach its renewable energy goals, making it so solar power is more widely available. In this blog, we’ll explore what this initiative is, how it works, and how New Yorkers can get involved.

So What is it?

Community solar is a subscription based model, where multiple customers subscribe to a shared solar farm located off-site. Instead of the traditional installation of solar panels on their rooftops, subscribers benefit from a portion of the power generated by a nearby solar farm. They then receive credits on their utility bills for the energy produced by their share of the solar farm.

This solution gets rid of many of the barriers to entry with solar, opening the door for residents and businesses that are unable to install solar panels on rooftops.

This initiative will play a key role in New York’s renewable energy strategy, which aims to get 70% of the state’s electricity from renewable sources by 2030 as part of the Climate Leadership and Community Protection Act (CLCPA). This initiative is constantly growing and is supported by The New York State Energy Research and Development Authority (NYSERDA) through programs like NY-Sun, which offers incentives for those involved.

How Does This Work in New York?

Instead of the traditional way of getting solar energy by having everyone installing solar panels in New York, this initiative makes it a lot simpler. The way this works is that developers set up a large solar array in a location with lots of sunlight, often in rural areas or open spaces. The electricity generated is then divided into “subscriptions” that are made available to local residents and businesses. Subscribers would then receive solar credits towards their electricity bill, based on their share of the energy produced.

The way the billing system works is very straightforward.

The solar farm produces electricity
The utility company credits the subscriber’s bill with the value of the energy produced
Subscribers pay a monthly subscription fee for their share of electricity produced

This fee is often less than the cost for the same amount of energy from the grid. The difference in cost plus the savings from solar credits can lead to significant savings on monthly utility bills.

What are the Benefits?

Easily Accessible Solar Energy: One advantage is that it provides access to clean energy for those who can’t install solar panels on their rooftops. It doesn’t matter if you’re renting or don’t get enough direct sunlight on your roof, this is something that anyone can take advantage of.
Environmental Impact: By becoming a subscriber, you can directly reduce your carbon footprint and support the transition to clean renewable energy.
Financial Savings: This method is often cheaper than traditional utility services for the same amount of energy, thanks to the solar credits that are applied to subscriber’s utility bills.

What to Consider When Choosing a Project in New York

As with any energy decision, choosing the right project is an important consideration for potential subscribers. Here are some key factors to keep an eye on when making your decision:

Location and Proximity: While solar energy is common across New York, the distance between the solar array and your home or business can impact the benefits. The closer you are to the project, the more reliable the connection will be while also increasing the availability of local programs and services.
Pricing and Contract Terms: The cost differs from person to person and there are a variety of reasons for this. Some projects might offer you a fixed rate, while others may charge you based on what the energy market rate is. Also make sure that you carefully review the contract terms as the details may differ between projects. Make sure you pay extra attention when comparing costs and looking at contracts, since these steps are crucial to finding the project that best suits your needs.
Potential Savings: Even though this project doesn’t have any high initial costs, it’s still important to look at what you could potentially save, depending on how much energy you use. NYSERDA has a Solar Calculator tool that can give you a rough estimate on your savings from a subscription.

The NY-Sun Program: Supporting Community Solar in New York

The NY-Sun program, established by NYSERDA, is a key element in the construction and development of community solar projects in New York. This program is an incentive for developers building new solar farms, by reducing the installation costs for both them and subscribers. This program also has a big focus on low to moderate-income communities, this gets rid of the barriers to entry which helps make solar power more affordable and accessible to everyone.

NYSERDA also provides incentives for those of you who already own solar panels, called the NY State Solar Energy System Equipment Tax Credit. This is a 25% tax credit, with a max of $5,000, that you can take advantage of if you own the solar system on your home. This is just one of the many solar incentives and reasons for why you should consider owning solar panels.

How to Get Started in New York

Research Available Projects: The first step to getting started is to do some research on what available projects are near you. A great resource would be NYSERDA’s website, which provides a detailed interactive map with a step by step guide on finding active projects.
Evaluate Your Energy Needs: Monthly energy usage is something you have to keep in mind, and how much of it you want to be offset by solar power. The majority of projects are going to allow you to choose how much of your energy usage you want to cover. The range could vary depending on the project, but most of the time they allow between 25% – 100%.
Start Saving: After subscribing to a project you’ll begin receiving credits on your utility bill, based on your share of solar energy produced. Over time, you’ll see savings and you’ll know that you’re contributing to New York’s renewable energy goals.

Conclusion

As there’s many options if you want to own a solar panel, community solar projects are still a viable option for those who have incompatible rooftops but would still like the benefits of solar energy. By joining a project, individuals and businesses can save money, reduce their environmental impact, and contribute to New York’s sustainability goals.