Empower Your Home, Enrich Your Future
Solar Community and Shared Systems
There are options and alternatives to having one's own residential Solar PV environment.
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An overview of these options is below, and we will evolve and elaborate on these options over time.
"Community Gardens"
Community solar projects, also known as solar gardens or shared renewable energy plants, allow multiple participants to share the benefits of a single solar power facility. This model emerged to make solar energy accessible to those who cannot install panels on their own properties.
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Highlighting specific points:
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1. History and Proliferation:
- The first U.S. community solar project launched in 2006 in Ellensburg, Washington
- As of early 2024, about 22 states plus DC have enacted community solar legislation
- The U.S. has seen exponential growth, with installed capacity growing from negligible amounts in 2010 to over 5 GW by 2023
- Minnesota and Massachusetts have been leading states in deployment
- The Department of Energy's National Community Solar Partnership aims to enable enough community solar to power 5 million households by 2025
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2. Investment Options:
- Direct subscription: Pay monthly for a portion of the system's output
- Upfront purchase: Buy panels or a share of the system
- Third-party financing: Work with solar developers who handle financing
- Community investment funds: Pool resources with other community members
- Solar cooperative membership: Join member-owned cooperative organizations
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3. Benefits to Members:
- Electricity bill credits/savings (typically 5-15% reduction)
- No need for roof installation or property ownership
- Lower upfront costs compared to individual installations
- Portability of benefits within service territory
- Environmental impact through clean energy generation
- Potential tax incentives (varies by jurisdiction)
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4. Getting Engaged:
- Research local community solar projects through utilities or solar developers
- Check state policies and available programs
- Review subscription agreements carefully
Factors to Consider:
- Contract length
- Monthly fees
- Expected savings
- Cancellation terms
- Credit requirements
- Contact local solar advocates or sustainability organizations
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5. Success/Failure Metrics:
- Subscriber satisfaction and retention rates
- Actual vs. projected energy generation
- Financial returns for investors
- System reliability and maintenance costs
- Community engagement levels
- Environmental impact (carbon offset)
- Bill savings achieved
- Project completion time and budget adherence
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Key Considerations:
- Projects vary significantly by state and utility territory
- Contract terms can range from 10-25 years
- Some programs have income requirements or geographic restrictions
- Consumer protection frameworks are still evolving
- Project success often depends on proper sizing and subscriber management
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General Community Garden Cost and ROI Issues
Let's break down the costs and returns for individual participants in community solar programs.
Costs vary significantly based on the program structure, but generally fall into these categories:
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Subscription-Based Models:
No/low upfront costs ($0-100 typical enrollment fee)
Monthly subscription payments based on allocated capacity
Often structured as "pay-as-you-go" with no long-term commitment
Typically priced at 85-95% of standard utility rates
Ownership-Based Models:
Upfront costs: $5,000-15,000 for a typical residential share (2-5 kW)
Some programs offer financing options (3-7% interest rates)
Additional small monthly maintenance fees ($5-20)
May require minimum credit scores (650+)
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Return on Investment (ROI) Characteristics - Financial Returns
Bill Credits:
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Monthly credits on utility bills
Typically, 5-15% savings compared to standard utility rates
Annual savings of $150-400 for average household
Payback Period:
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Subscription models: Immediate savings (no payback period)
Ownership models: 7-12 years depending on:
Local electricity rates
Solar production
Initial investment amount
Available incentives
Investment Protection:
Performance guarantees often included
Many programs offer production guarantees
Contract transferability if moving within service area
Some programs offer buyback options
Value Appreciation:
Potential increase in savings as utility rates rise
Historical electricity price inflation: 2-4% annually
Fixed-rate agreements become more valuable over time
Tax Benefits and Incentives:
Federal Investment Tax Credit (30% through 2032)
State-specific incentives and rebates
SREC (Solar Renewable Energy Certificate) markets where available
Some programs offer additional local incentives
Community Garden ROI Examples
In general, this is a difficult question to generalize, but we'll answer this complex question about solar power's costs and productivity in a couple of simple examples.
Example One​
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Sample ROI Calculation (Ownership Model):
Initial Investment: $10,000
Annual Energy Production: 4,000 kWh
Electricity Rate: $0.13/kWh
Annual Savings: $520 (4,000 kWh × $0.13)
Tax Credit: $3,000 (30% of investment)
Net Investment: $7,000
Simple Payback Period: 13.5 years ($7,000 ÷ $520)
20-Year ROI: ~49% (not including electricity rate increases)
Risk Factors Affecting Returns
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Solar resource variability
Changes in electricity rates
Panel degradation (typically 0.5% annually)
Operation and maintenance costs
Program management effectiveness
Utility policy changes
Contract terms and conditions
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Optimization Strategies
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Compare multiple programs:
Contract terms
Production guarantees
Fee structures
Exit clauses
Consider timing:
Available incentives
Electricity rate trends
Technology improvements
Evaluate program track record:
Past performance
Customer satisfaction
Management stability
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Example Two​
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​This example shows the dramatic impact positive on your Community Garden investment under the realistic assumption of regular rate increases over time.
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Original Base Assumptions (from Example One):
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Initial Investment: $10,000
Annual Energy Production: 4,000 kWh
Starting Electricity Rate: $0.13/kWh
Federal Tax Credit: $3,000 (30%)
Net Investment: $7,000
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Now, let's add rate escalation:
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Conservative Rate Increase: 3% annually
Historical Average: 2.5-4% depending on region
Some regions seeing higher increases (5-7% recently)
20-Year Analysis with 3% Annual Rate Increase:
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Year 1: $0.13/kWh = $520 savings
Year 2: $0.134/kWh = $536 savings
Year 3: $0.138/kWh = $552 savings
Year 4: $0.142/kWh = $568 savings
Year 5: $0.146/kWh = $585 savings
Year 10: $0.169/kWh = $678 savings
Year 15: $0.196/kWh = $786 savings
Year 20: $0.227/kWh = $911 savings
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Total 20-Year Savings: ~$13,900
Net Return (after $7,000 investment): $6,900
ROI over 20 years: ~99%
New Payback Period: ~10.5 years (vs. original 13.5)
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Key Improvements ...
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Higher Total Returns
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Original calculation: 49% ROI
With rate increases: 99% ROI
Difference: 50 percentage points improvement
Faster Payback:
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Original: 13.5 years
With increases: 10.5 years
Improvement: 3 years faster
Additional Benefits:
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Protection against rate volatility
Predictable cost structure
Increased savings in later years when rates are highest
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This analysis demonstrates that historically realistic electricity rate increases significantly enhance the investment case for community solar participation.
The effect is particularly pronounced in:
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Regions with historically high-rate increases
Areas with aging grid infrastructure requiring investment
Markets transitioning away from fossil fuels
Regions with high energy demand growth
For more Information on Community Gardens
There are published case studies that describe this process (from engagement to investment to devestiture.in the following section.highlighting a comprehensive list of resources for investigating community solar, along with notable case studies.
Online Resources
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Government & Research Organizations:
National Renewable Energy Laboratory (NREL)
Community Solar Project Database
Market Reports & Technical Assistance
Website:
www.nrel.gov/state-local-tribal/community-solar.htmlDepartment of Energy
(DOE)National Community Solar Partnership
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Website: www.energy.gov/communitysolar/community-solar.html
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Interstate Renewable Energy Council (IREC)
Regulatory databases
Best practices guides
Website: www.irecusa.org
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Industry Organizations:
Coalition for Community Solar Access (CCSA)
Policy updates
Market reports
Website: www.communitysolaraccess.org
Solar Energy Industries Association (SEIA)
Market researchPolicy tracking
Website: www.seia.org/initiatives/community-solar
State-Specific Resources:
NY-Sun (New York)
www.nyserda.ny.gov/communitysolar
Minnesota Clean Energy Resource Teams
www.cleanenergyresourceteams.org
Massachusetts SMART Program
www.mass.gov/solar-massachusetts-renewable-target-smart
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Notable Case Studies:
Colorado Community Solar Gardens
Location: Denver metro area
Developer: SunShare
Key aspects:
One of the earliest large-scale programs
Multiple phases of development
Strong utility partnership
Documented subscriber acquisition strategies
Minnesota Community Solar Garden Program
Location: Xcel Energy territory
Timeline: 2013-present
Highlights: Rapid growth from 0 to 800+ MW
Multiple developer participation
Varied subscription models
Well-documented regulatory evolution
Massachusetts Community Solar + Storage
Location: Various sites
Developer: BlueWave Solar
Features:
Integration of battery storage
Low-income participation
SMART program incentives
Detailed financial modeling available
New York Community Distributed Generation
Location: Multiple regions
Various developers
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Documented aspects:
Value Stack compensation
VDER implementation
Market evolution
Consumer protection frameworks
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Research & Academic Publications
NREL Technical Reports:
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"Community Solar: Challenges and Opportunities"
"Sharing the Sun: Understanding Community Solar Deployment and Subscriptions"
Academic Studies
Energy Policy Journal
Solar Energy Journal
Renewable and Sustainable Energy Reviews
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Tools & Calculators
NREL's System Advisor Model (SAM)
Free software
Detailed financial modeling
Technical performance simulation
PVWatts Calculator
Solar resource assessment
Production estimates
Location-specific data
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Community Solar Value Calculator
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Available through SEIA
Subscription value assessment
ROI calculations
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Monitoring & Tracking Resources:
EnergySage Community Solar Marketplace
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Compare local offerings
Review terms and conditions
Contact verified developers
Clean Energy States Alliance
Program tracking
Policy updates
Case studies database
Solar Reviews
Consumer reviews
Developer ratings
Program comparisons