Community solar can be confusing as it involves the coordination of multiple organizations, and subscription terms vary greatly at the state level and the utility level. Due to state policy, many folks currently have to deal with getting a separate bill from Neighborhood Sun and their utility: a system known as dual billing. We often find that people who are unhappy with their subscription don’t fully understand the way community solar savings work, and that is the source of their frustration. That’s why we’re spotlighting some less-than-positive notions of Neighborhood Sun to dispel a few community solar myths.

Myth #1:  Community solar costs you extra.

When we hear subscriber’s frustrations like “I am not seeing any savings!” or “You’re overpriced,” we understand the confusion and are eager to clarify the misunderstanding. 

On an annual basis, Community Solar will always save you money and NEVER cost you “extra.” It’s important to understand how billing works to see where your savings are coming from, so let’s break it down…

• Solar Credits: When you subscribe to a community solar farm, you are allocated a share of the energy it generates based on your historical usage. Your utility company applies this energy as “community solar credits” on your bill, reducing your utility costs by 80-90%.
• Utility Charges: Depending on the amount of solar credits received, you may need to pay the remaining balance on your utility bill.
• Billing Process: Your utility deducts the solar credit amount from your bill, reducing your payment to them. Neighborhood Sun invoices you separately for the energy generated by your solar share, applying a guaranteed discount per your contract.

A community solar subscription generates only savings– not additional costs. What does differ, however, is how those costs are divided and who they are paid to. In short, community solar credits mean your utility company “buys” solar power from you by deducting it from your bill. We then charge you for that amount, minus your discount, resulting in savings.

Myth #2:  Since there is no additional cost involved, I don’t need to pay anything.

Subscriber frustration: “Y’all say it’s no charge but you do charge.”

The fact that community solar involves no additional cost and yet there is still some form of payment can feel confusing or off-putting if you don’t understand why it’s necessary. States that have already enacted consolidated billing, like New York, make it easier for subscribers to benefit from community solar without having a separate bill. However, in states without consolidated billing, subscribers must pay Neighborhood Sun separately for the community solar credits applied to their utility bills, which come at a discount compared to the standard utility rate. So yes, you are paying for something as a subscriber, but it’s the energy you would have been paying for anyways if you were not a subscriber minus whatever discount is guaranteed in your contract.

Myth #3:  Savings will be consistent all year long.

Subscriber frustration: “While there were initial cost savings. The last two months of charges were unexpectedly high and not cost effective.”

Community solar follows a seasonal cycle beginning and ending each spring. You’ll notice your credit amounts increase as daylight hours extend, peaking around July and August, then gradually decreasing. By the end of summer, you may accumulate a surplus (negative balance) that will help offset your lower solar credits during the winter months. This balance typically returns to $0 by late winter, and the cycle then repeats. Savings should be considered on an annual basis due to these monthly fluctuations.

If there are every any concerns with how many community solar credits you’re receive, you can always contact us or fill out the Allocation Adjustment form. This way, we can reassess your most recent electricity usage and adjust it accordingly.