How to Choose a Community Solar Provider | EnergySage

How to choose a community solar provider

)

Community solar is an excellent option if you want to save money on electricity costs. While you'll save less over time than if you install solar on your property, signing up for community solar allows you to enjoy some of the benefits of going solar without any upfront investment – it's also a great option if you're a renter or don't have a suitable roof for solar!

When you subscribe to a community solar project, you'll pay your project's provider a discounted rate for the energy generated through your subscription – but who are these project providers? And how do you choose one? This article explains how to evaluate community solar companies and some companies you should know about.

Key takeaways

How to evaluate community solar companies

If you live in an area with many surrounding community solar projects, deciding which one to choose might be difficult. Here are some ways you can compare project providers near you:

Savings percentage

If you're subscribing to a community solar project, odds are you're looking to save money – so the savings percentage should be top of mind! This number indicates the fixed discount on energy that you're receiving from your project provider. The savings discount will vary depending on the community solar company and the specific project you choose, but generally, you can expect a bill credit of about 10-20%.

Remember that this isn't exactly what you'll save each month because the amount of electricity you consume (and are subsequently charged for by your utility company) will vary. Additionally, the amount of energy generated by your share of the community solar project varies – in some months, you'll probably save more, and in other months you'll save less.

Cancellation terms

If you're a renter or aren't in your forever home, you may need to cancel your community solar subscription at some point. While subscriptions can sometimes be transferable to new properties, it depends on whether you're moving to a location in the same electricity service territory as your current home.

Most community solar companies will allow you to cancel without penalty fees, but you must give minimum notice (about 30 to 90 days).

Credit score requirement

Some community solar companies require a minimum credit score to sign up for their projects. They set this requirement because the project's investors want to see a return on investment, and a credit score is one factor they often use to determine how likely you are to default on your bill payments.

However, your credit score isn't the only (or even most accurate) indicator of your ability to pay your bills, and it can hinder many people – especially those in low and moderate-income (LMI) communities – from signing up for community solar. So, if your credit score is lower, you'll want to examine your provider's credit score requirements.

Organization affiliation

The Coalition for Community Solar Access (CCSA) is a "national Coalition of businesses and non-profits working to expand customer choice and access to solar for all American households and businesses through community solar." You may want to check if your community solar provider is a member of CCSA because these companies are all working together to improve the industry. The CCSA has four categories of members: leadership members, general members, utility-affiliate members, and nonprofit members.

Ratings & reviews

One of the best ways to get a feel for a company is to check out ratings and reviews by current or previous customers. For any community solar companies on the EnergySage platform, you'll be able to check out reviews from people who have subscribed to projects through them in the past.

What are some community solar companies you should know?

There are several community solar companies out there, and those available to you will vary substantially depending on where you live – but we've compiled a list of some of the most widely known community solar companies. We will explain how each of them compares:

Community solar companies compared

Company Project locations Savings percentage Cancellation terms Credit score requirement Organization affiliation
Solstice IL, MA, MN, NJ, NY, D.C. 10-20% No fee Some projects min. score 650 CCSA non-profit member
Nexamp Across the country 10-15% No fee No credit check required CCSA leadership member
Ampion Across the country 10-15% No fee Min. score 600 CCSA general member
Arcadia Across the country 5-10% No fee No credit check required CCSA leadership member
PowerMarket Northeast & CO 10-15% No fee No credit check required CCSA general member
Common Energy Across the country 0.1% No fee Min. score 650 Not a CCSA member
Perch Energy ME, MD, MA, MN, NJ, NY, D.C. 5-20% No fee Some projects min. score 650 CCSA leadership member
Clearway Community Solar IL, MA, MN, NY 0.2% For a limited time no fee Requires credit check, no min. score listed CCSA leadership member

Solstice

Solstice is a community solar provider established in 2016 and currently operates in five states (Illinois, Massachusetts, Minnesota, New Jersey, and New York) plus Washington, D.C. Here are some things to know about Solstice:

Nexamp

Nexamp was founded in 2007 by two U.S. Army veterans and serves as a community solar developer and provider, building and operating projects nationwide. Here's what you should know about Nexamp:

Ampion

Ampion was established in 2014 and is a community solar provider for projects across the country. Here are some things to know about Ampion:

Arcadia

Founded in 2016, Arcadia is a community solar provider in states nationwide. Here are some facts about Arcadia:

PowerMarket

PowerMarket was established in 2014 and currently provides community solar throughout the Northeast and Colorado. Here's what you should know about PowerMarket:

Common Energy

Started in 2018, Common Energy already serves as a community solar provider to projects across the country – and is quickly adding more states to the list. Here are some facts about Common Energy:

Perch Energy

In 2021, Perch Energy spun off BlueWave Solar as a community solar provider. Perch has projects throughout the Northeast and Minnesota, with plans to expand across the country. Here's what you should know about Perch Energy:

Clearway Community Solar

Founded in 2015, Clearway Community Solar is a community solar provider in four states: Massachusetts, Minnesota, New York, and Illinois. The separate but affiliated Clearway Energy Group is one of the largest developers and operators of clean energy in the U.S. Here are some things to know about Clearway Community Solar:

What are some other ways to choose a community solar project?

Beyond the project provider, there are some other things you'll want to consider when choosing a community solar project. For one, you'll want to know the timing or how long it will take until that project goes live – some community solar projects might be available now, while for others, you'll have to wait until the project is completed, which could take a few weeks to several months.

You may also care about the location of the project: the closer the project is to you, the more it supports local jobs in your community. If this is important to you, you might want to prioritize projects within a certain proximity to your home.