The Importance of Seasons for Community Solar Savings

The Importance of Seasons for Community Solar Savings

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Article Title: Understanding the Impact of Seasons on Community Solar Savings

Introduction:
Community solar is widely regarded as one of the simplest and most effective ways to save on electricity bills. However, it is important to note that the amount of savings can vary significantly from season to season. In this article, we will explore the reasons behind these variations and understand the factors that influence community solar savings.

Key Points:
1. Savings with community solar can vary each month due to seasonal variations.
2. There may be months where you pay more to the community solar company than you would pay to your utility company.
3. On an annual basis, community solar can help you save between 5-20% on your electricity costs.
4. Most community solar programs require you to receive two separate bills – one from your utility company and another from your community solar provider.

Explanation of Community Solar Billing:
Contrary to popular belief, community solar billing typically involves separate bills from your utility company and your community solar provider. While your utility bill will include solar credits, you will receive a separate bill from your community solar provider for these credits. These credits are sold by community solar companies at a fixed discount, but your utility company credits them to your bill at full value. It is akin to purchasing arcade tokens at a discount and still being able to play the game using fewer tokens.

Rollover of Unused Solar Bill Credits:
When you sign up for a solar farm, your community solar company assigns you a share based on your annual electricity needs. Each month, your community solar provider will bill you for the credits generated by your allocated share. There may be times when you purchase more credits than you require to cover your utility charges. However, you can rollover these credits and use them for future utility bills.

Seasonal Impact on Community Solar Savings:
Solar panels tend to produce more electricity during the summer due to longer days and stronger sunlight. This higher electricity production corresponds to increased bill credits generated by the solar farm. Consequently, your community solar bill may be higher during the summer months. Conversely, electricity production decreases during winter, resulting in lower bill credits and charges from your community solar provider.

Variations in Electricity Usage by Season:
Just as solar production varies by season, your electricity usage also changes accordingly. Depending on factors such as electric heating or air conditioning usage, your utility bills may align more or less with your community solar credits in terms of timing. Although a 1:1 match between allocated credits and energy usage is unlikely, unused credits can be rolled over to future months, ensuring overall savings.

Example: Kerry’s Annual Community Solar Savings:
To illustrate the impact of seasons and electricity consumption habits on community solar savings, consider Kerry’s scenario. Kerry consumes more electricity during the summer months due to window AC units. Although her monthly solar production does not align precisely with her usage, she still saves approximately $170 annually, equivalent to around 9% of her electricity costs.

Conclusion:
Understanding the impact of seasons on community solar savings is crucial when assessing the potential benefits of participating in a community solar program. By comprehending the variations in electricity production and consumption throughout different seasons, individuals can make informed decisions to maximize their savings. To explore community solar options in your area, you can visit EnergySage’s Community Solar Marketplace for a list of available projects and estimates of potential savings.

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