Community Solar For Subscribers FAQs
1. What is community solar?
Community solar is a mechanism that allows utility customers to subscribe to a portion of the electricity generated by a community solar project and receive bill credits that represent the value of that energy. It allows anyone to receive the benefits of solar energy. Solar companies will invest in projects that supply clean energy to the electric grid, and participating subscribers can receive credits on their utility bills and save money. The New Jersey Legislature authorized the BPU’s program in 2018, and the state provides incentives to support clean energy development.
2. Who is community solar for?
Community solar is designed for residents who are unable to install their own solar panels. This may be because they are renters, do not have control over their roof, do not have a roof or property that is suitable for a solar system, or cannot afford to install a solar project. New Jersey’s Community Solar Energy Program also requires that more than half of project capacity be subscribed be low- to moderate-income subscribers who have a gross household income below 80% of the area median income.
All electric utility customers and rate classes are eligible to become community solar subscribers, but many subscriber organizations prioritize residential subscriptions.
3. Where are community solar projects? Do I need to put solar panels on my roof?
Community solar projects are located across New Jersey. They are primarily sited on large commercial buildings such as warehouses, but can also be on landfills and contaminated sites, carports, mining sites, and bodies of water. You will not have to install anything yourself to participate! These projects must be large enough to serve at least 10 subscribers but can be as big as 15 acres and serve over 600 subscribers.
4. What does a community solar subscription cost? How much can I save with community solar?
There is not a fixed price for a community solar subscription. Each month you will receive credits on your bill that represent the value of the electricity generated on your behalf by your share of the solar system. You will receive a fixed percentage discount on those bill credits as your savings, and the remainder will be paid as the subscription amount to the solar project owner. These discount rates can be from 10% to more than 40%, which is applied to the solar bill credits, not your entire bill, which also includes taxes, fees, and fixed charges. Many subscribers will see savings of $20–$60 per month, depending on your subscription size, utility, and discount rate, but all subscribers are guaranteed net savings.
5. How will I be billed? Are there any fees?
All community solar projects now use consolidated billing, which means that the bill credit discount and subscription charge will both be on your utility bill. You will still receive the regular bill from your utility company, and there is no need to pay a separate bill or give your banking information to another party. There is no sign-up fee, no hidden costs, and no cancelation fee, so you may cancel at any time. The only charge is the subscription amount, which is calculated on your bill based on the discount rate provided. This charge will always be less than the total bill credit, so you are always guaranteed savings! Sample bills are available here.
6. How is this different from regular solar panels on my roof?
With community solar, you don’t have to install your own solar system and you receive a guaranteed discount for participating, but it will not replace all your electric usage with solar power. By installing your own panels, you receive the benefits of net metering, which allows you to export your system’s generation to the grid and receive the retail rate. In the long term, having your own panels may result in larger savings, but community solar is a good alternative for households that do not have a suitable roof for a residential solar system.
7. I received a mailer about signing up for community solar or a salesperson came to my door. How do I know it’s not a scam?
You can see if the marketer is listed on the BPU’s list of registered community solar subscriber organizations available here.
8. Who will be responsible for my electricity supply? Is community solar a third-party supplier?
Your local distribution utility will still provide your electricity, with no changes to your service. Community solar bill credits are applied separately from your supply charges. You may have a third-party electricity supplier and also subscribe to community solar.
9. How do I sign up?
You can sign up for community solar with a community solar subscriber organization. You will have to provide your address, contact information, and utility account information. If you qualify as low- to moderate-income (LMI), you can provide evidence of this status or sign the self-attestation form available here that will enable you to access projects’ capacity reserved for LMI subscribers. The Community Solar Project Finder has a list of projects seeking subscribers and links to enroll.
10. If I move, can I take my community solar subscription with me?
If you move within the same utility territory, you should contact your community solar subscriber organization with your new utility account number, and they may transfer your subscription to your new home. If you move to a different utility territory, you will have to cancel and re-enroll with a new project, but your current subscriber organization may also have an available project serving you there.
11. How do I cancel my community solar subscription?
Please contact your community solar subscriber organization. Subscribers will also receive a disclosure form and contract upon signing up that will provide instructions for cancelling your subscription.
12. What are the benefits for low- and moderate-income households?
51% of the capacity of every community solar projects is reserved for low- to moderate-income (LMI) subscribers, which also includes affordable housing providers. Some projects also offer a larger discount to LMI subscribers. To qualify as LMI, you may provide income statements, show evidence of participation in a variety of assistance programs, or sign the self-attestation of income eligibility.
13. How does community solar work if I am enrolled in LIHEAP or the Universal Service Fund (USF)?
LIHEAP benefits will be applied to your bill as normal and will not interact with community solar savings.
USF participants may see a reduction in benefits after subscribing to a community solar project. This is because USF is designed to reduce your energy cost burden to a certain threshold (4% of income). When community solar savings help reduce your energy cost burden, less USF funds are needed to meet this threshold. Because USF requires annual re-enrollment, these benefits may change at that time, even after you’ve been receiving both amounts.
14. I live in a condo or homeowners’ association. How can we support community solar?
If you pay your own electric bill, you can sign up your own unit for a community solar subscription. There is not a mechanism for the entire association to sign up together because everyone has their own utility account, but word-of-mouth is the best way to promote awareness! If your building has large enough suitable roof space, you may consider speaking to a solar developer about how to host a solar project. A traditional behind-the-meter installation may also be feasible.
15. Who do I contact if I have more questions?
Please email communitysolar@njcleanenergy.com.