Investing in Community Solar

Understanding exactly what goes into community solar is important before signing any contracts. Community solar is a great concept because it allows you to invest in solar if you’re a renter or if you live in an apartment, but there’s a lot more to it than that, and you’ll want to make sure you’re fully prepared to take it on before you start investing. Before you get in there and sign up, check out this blog to get a fuller picture of what exactly goes into community solar.

What is community solar?

To put it simply, community solar is a way to rent or buy out panels on a solar farm that allows you to get the benefits of going solar without the hassle or impossibility of installing solar panels onto the roof of your own home. These community solar farms are usually on large areas of land that stretch for several miles, such as landfills and open fields. This allows everyone in the area to take full advantage of the solar panels. Community solar is also a community in the sense that a large group of people is all investing in solar panels near you, creating a sense of shared culture with your solar neighbor.

How is this possible?

You may be wondering how this is possible since it seems like such an alien idea. However, community solar is not that much different than rooftop solar. It allows net metering in just the same way, meaning that you can sell back any excess energy you generate from these large solar panels and get a great return on investment. This means that you’ll be able to make payments on your solar panels no problem if you’re renting them or be able to pay back the price of the panels in as little as seven years if you bought them. While it may seem like it’s impossible, it’s actually not as complex as it seems.

Should I rent or buy?

If you’re one of the people who want to buy rooftop solar but can’t because of the situation of your living space, you might want to go the route of outright buying the panels. Doing so will allow you access to tax credits and incentives, and you’ll get the best return on your investment.

However, if you can’t afford to do that, one of the great things about community solar is the monthly plan you can get. You’ll have to pay every month for solar, but the savings you’ll get because you won’t be paying a utility bill anymore will be as much as 5 to 15 percent, making it a worthwhile investment.

What are the requirements?

If you do plan on going the monthly payment route, you should know that a majority of solar companies do seek some requirements from people who go this route, just like someone renting a car would. These requirements are typically a locked-in 20-year contract to satisfy the life of the solar panel so they’ll make the most, plus a 700 credit score. Both of these make sense: they don’t want to rent out old panels, and they want to rent out to someone who they know can make repeated payments on time. However, if you don’t fit into these requirements, you might try looking for a community solar farm that doesn’t require as much.

Want to learn more about bringing solar into your lifestyle? Check out the HahaSmart blog!

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