Sign Up for Community Solar

Why sign up? A community solar subscription saves you money on your electric bill and helps tp support development of solar power in Massachusetts. This is a great option for homeowners, renters, condo owners and businesses or those who cannot install solar on their roof. You will be able to save 5-15% on your annual electricity bills!

How does it work? You sign an agreement with a community solar company to buy a share of the clean energy output produced by a solar project. After subscribing to a community solar program, you will begin receiving two separate bills: a bill from your community solar provider for the production you purchase during each month of the program; and you will continue receiving a monthly bill from National Grid, but this bill will include a credit from the community solar project.

How much does it cost to sign up? Sign-up or membership fees vary depending on the project, provider, and payment model – many community solar providers offer $0-down subscription options, while others may charge a small, initial sign-up fee to get you up and running.

What happens after I sign up? After you sign up for a project, your community solar company will contact you about your next steps. This may include signing a contract, confirming your electricity usage, and answering any other questions they might have.

Most community solar companies give you the ability to cancel with a six-month notice or adjust your purchase commitment with one- or two-months’ notice. National Grid processing times will likely add time to the sign-up and cancellation process.

Where are the projects? The project can be anywhere in National Grid’s service territory.

Steps to Take

Step 1: Find your electric bill – you will need your account number.

Step 2: Go online to our Community Solar partner EnergySage. Newburyport uses EnergySage because they act as a neutral public marketplace/broker for multiple community solar developers. This means you may find a community solar project that will work for you – i.e., one that is taking new subscribers using the amount of electricity you require. Plus, they have an easy-to-use marketplace and customer support through their expert Solar Advisors. Newburyport does not receive any compensation from EnergySage. Newburyport also offers its own solar coach that can assist in understanding the offers.

Step 3: On the EnergySage site compare projects and sign up.

1. Enter your zip code to find local community solar projects available to you. The projects available change over time, as projects become fully subscribed and new ones become ready to sign up subscribers. If you don’t see a project available, check back in a few days or weeks.
2. Compare the available options & choose a project.
3. Download, review, and save the proposed purchase agreement. If you have questions, reach out to the contact names listed or use the Newburyport solar coach See Step 4: Consult a Solar Coach below.
4. If you are satisfied with the proposal, you can provide basic contact information and click “subscribe”.
5. Your selected community solar company will reach out to you to finalize your subscription
6. You will begin to see bill credits appear on your electric bill once the project commences operations.
7. You will receive your first community solar bill.

For more information or comparison: You may want to check other community solar developers and aggregators. Here are a few that are very active in Massachusetts:
1. Nexamp
2. Relay Power
3. Arcadia

What should I look for? How will I know I’m getting a good deal? Fortunately for consumers in Massachusetts, the community solar terms are becoming simpler over time. The EnergySage site offers tips for being an informed buyer. Here are some questions you can ask when deciding between community solar offers:

1. How long is the term of your contract with the community solar provider?
2. How many credits each month do they suggest you buy? Ask how they calculate that amount (make sure you only buy credits that you can use).
3. Does the company charge a fee if you exit the contract early?
4. Will they provide a written contract? (Be sure to read it.)
5. How do you pay for your community solar subscription? Do they require a credit check?
6. How will the company bill you? Electronically? A paper bill? How do they accept your payments? Can you choose? Do they offer automatic deductions from your bank account?

Step 4: Consult a Solar Coach. Newburyport has residents who volunteer as coaches to help fellow residents understand and go through the process of choosing a community solar provider. To have a solar coach contact you please send an email to NewburyportEAC@gmail.com and include your full name, email, and phone number. We will try to respond promptly but it may take up to 5 days for a solar coach to contact you.

TIMING NOTE FOR COMMUNITY SOLAR: Many community solar companies sign up subscribers prior to the solar project finishing construction. You will only begin to receive solar credits on your National Grid bill and receive a community solar bill once the project begins producing electricity. This means that after you sign up, there may be a period of months before you begin seeing credits on your bill. Ask the community solar company to send you updates on the project and to give you their contact information and/or a website link. If you have any questions, don’t hesitate to contact them to ask for more information.

Deep Dive

Here is how it works.

1. You subscribe to a community solar project.

The community solar company develops a solar project. The project will be within National Grid’s service territory but not necessarily within your town. The developer elects to give all of the electricity generated to National Grid. In exchange, National Grid creates solar “net metering” credits in dollars to the community solar company equal to the value of the solar power. The community solar company then finds customers (like you) to support the project.

You sign a contract and agree to purchase a portion of the net metering solar bill credits generated by the local solar project. In general, it is preferable to limit the dollar amount of the credits you commit to buy annually to less than the annual aggregate amount of your National Grid bills (otherwise, you might be buying more credits than you can use during the year). Your purchase agreement, combined with agreements by other subscribers enable the community solar company to finance and build the solar project. Note – with a community solar project here in Massachusetts, you are not buying electricity. The solar electricity itself flows into National Grid distribution system as part of the overall mix. Instead, you are agreeing to purchase some of the net metering credits created by National Grid representing the value of that solar power.

1. Typical terms are 5 – 15% savings off the value of your solar bill credits (not your entire electric bill). The number of solar credits you agree to purchase will determine the amount of your savings as a percentage of your entire electric bill.

2. You are assigned a number of “community solar shares” that will cover a portion of your electricity use. It may take some time (possibly months) between the time of your purchase commitment before the project goes into operation. Behind the scenes, the developer is finding the remaining buyers, securing permits and financing to build the solar project, building the project, and getting National Grid’s permission to operate the project.

3. Once in operation, the community solar project produces electricity for the distribution system each month. National Grid buys that electricity and creates the related net metering credits. The community solar company tells National Grid to allocate the net metering credits to you and the other customers. The credits will show up on your monthly National Grid bill. The amount of the credits you receive each month will vary based on the seasons, with more credits arriving during the sunny months and fewer over the less sunny months, which are then allocated to each participant in the community solar project. Your community solar company tracks the solar bill credits that you should receive on National Grid bill each billing period.

2. You receive a monthly bill from the community solar company. You pay the community solar company for the solar net metering credits from the solar project that appear on your National Grid bill. Typically, the community solar companies will offer a 5 – 15% discount on the value of the credits, meaning you will save 5 – 15% on the value of those credits received on your bill!.

3. Your monthly National Grid electric bill shows a credit for the net metering credits generated by your subscription to the community solar project.

4. Subscriptions can be cancelled or adjusted. Most community solar companies currently offer a long-term commitment with a locked-in savings percentage rate on the value of the credits. Most offer the ability to cancel with a six-month’s notice or adjust the purchase commitment with one- or two-months’ notice. National Grid processing can extend the sign up and cancellation timeframe.

FAQs

Why do we recommend EnergySage? They act as a neutral public marketplace / broker for multiple community solar developers. You can enter your zip code on EnergySage to find and compare multiple subscription options in our area. Best of all, EnergySage has expert, unbiased Energy Advisors available via phone and email to support you.

What are the benefits of community solar? Community solar is a way to support local clean energy development and jobs right here in Massachusetts. The developers need our subscriptions to get financing to build their projects. It can also lower electric bills for subscribers. Subscribing is a great way to save money and support local solar development!

Do subscribers directly receive power from the community solar project? No. Unlike a home with its own solar panels, the power generated by community solar cannot be delivered exclusively to a subscriber’s home. Like all electricity, power produced by a community solar project is sent to National Grid’s distribution system and distributed by National Grid to users the moment it is created.

Am I purchasing solar energy directly? No, but you are supporting development of solar projection. With a community solar project, while you will not be purchasing “green electricity” for your own use, purchasing net metering credits from a community solar project is still an effective and easy way to support local clean energy development and jobs in Massachusetts. The developers need our subscriptions to get financing to build their projects and they want satisfied customers.

What if I move? If you move to a new home within National Grid’s territory, you can continue your subscription. If you move outside the territory, you must cancel your subscription.

I signed up for community solar two months ago. Why do I not see solar credits on my National Grid bill yet? Many community solar companies sign up subscribers prior to the solar project being finished. You will only begin to receive bill credits and a community solar bill once the project become operational. This means that after you sign up, there may be a period of months before you see credits on your National Grid bill.

Why do my community solar and electric National Grid bills not match each month? Solar electricity production and your home’s electricity consumption are two independent processes; both vary by the month and season. Solar electricity production is driven by the amount of sunlight and is highest during the summer, medium during the spring and fall, and low in the winter. For an average home, electricity use is highest during the summer, medium during the winter, and lowest in the spring and fall.

National Grid accounting practices generally mean credits generated in one billing period typically arrive one, or sometimes two, billing periods later on a homeowner’s bill. Thus, your total electric National Grid bill, the solar bill credits that appear on your National Grid bill, and your community solar bill with the charges for those solar credits will vary by month and not in a coordinated manner. Community solar companies typically will bill you only for solar credits after you receive them on your bill, and/or provide a periodic reconciliation.

I have an electricity supplier. How would that work with community solar? You will not be buying electricity from the community solar company; you will only “buy” solar credits (in the form of dollar credits on your National Grid bill). Your National Grid bill lists the name of the company generating your electricity; this supplier will continue to be National Grid unless you make a separate decision to purchase your electricity from an alternate electricity supplier. If you want to consider changing your electricity supplier, the state has developed the Energy Switch website to help you identify companies offering supply to your community.

My municipality has a contract for electricity prices for its residents (known as community choice aggregation). Can I still sign up for community solar? Yes, you are eligible to sign up for community solar even if your electricity is provided through community choice aggregation. There is no change in the process for you to sign up for community solar.

I would like more information. What are some additional links to learn more?

What is Community Solar?

Comparison Shopping for Power from Community Solar Farms (Forbes magazine)

Is Community Solar Worth It?

How Community Solar Can Help Social and Environmental Justice

The Importance of Public Benefit Corporations, Stakeholder Capitalism and Corporate Responsibility