State and federal initiatives have made sustainability goals a fact of life for many businesses. While solar energy can also help businesses lower their energy costs, installing a solar system isn’t always easy. For small businesses, the high upfront cost of solar, and allocating the roof space for panels can be a challenge.
Thankfully, community solar programs provide a solution, allowing small businesses the opportunity to enjoy the sustainability and energy savings of solar panels without the limitations of installing them on their property.
What is Community Solar?
Community solar is a system that allows businesses and residences alike to receive the benefits of solar energy without needing the property or capital to invest in and install solar panels themselves. Unlike a Power Purchase Agreement, or PPA, that often comes with a fee for the energy generated, most Community Solar programs guarantee savings each month as you receive a share of whatever energy is generated by an offsite solar array. These arrays are sometimes called “solar farms.”
The size and location of a community solar farm can vary, but they are large enough to be shared by multiple subscribers at a time, each receiving a share monthly for a portion of the panel’s generated energy.
Contrary to popular belief, subscribing to a community solar project does not mean any equipment needs to be installed on a business or residential property.
How Does Community Solar Work?
The energy generated by the panels of a community solar farm is channeled into the energy grid. Utility companies in the local area then pay the operators of the solar farm for the energy they generate, and every subscriber to the community solar project receives a percentage of that payment in credit. This credit goes toward a business or residence’s monthly utility bills, lowering them on a consistent basis.
While each subscriber pays a monthly rate to use that solar energy, that rate is less than the energy savings they enjoy per month, typically 10% of your bill. For example, if your total energy savings for a given month amounts to $100, the cost of your subscription fee would be $90.
For small businesses, whose margins are increasingly tight, this allows them to operate with reduced energy costs without needing to fully invest in a solar system.
Community Solar Projects in New York State
For small businesses interested in community solar, there’s no better state to be in than New York. According to NYSERDA, New York is the leading community solar state in the country, with over 800 currently active community solar projects, totaling six gigawatts of solar energy for businesses and residences alike to use.
With New York community solar programs like the NY-Sun Project, the State’s new goal is to achieve 10 gigawatts of shared community solar energy by 2030. That means frequent new projects will continue to come online.
How Do Small Businesses Benefit from Community Solar?
Economic uncertainties and other challenges make finances tighter and competition fiercer between small businesses with each passing year; with these difficulties mounting, it’s clear that small businesses can benefit considerably from reduced energy costs.
While buying solar panels could amount to a greater overall return on investment long term, the cost of installation and the need for viable roof space make this a challenge for many small businesses.
Businesses of any scale can take advantage of many benefits by subscribing to a community solar plan, including:
- Ability to meet sustainability goals.
- Lower, more consistent energy costs.
- No installation cost or maintenance.
- Different plans for a variety of flexible financing options.
What Makes a Small Business Ideal for Community Solar?
Small businesses are ideal candidates for community solar if they:
- Struggling with high energy costs.
- Share a building, either with other businesses or residential tenants.
- Have minimal roof space and can’t fit solar panels.
EnergyMark: Affordable Energy Solutions for Small Businesses
EnergyMark can help small businesses save money on their energy costs while contributing to a more sustainable future with community solar. Want to find out if your small business is a good fit? Contact us today for a free custom quote to decide if community solar is right for you.
