Solar energy is accessible to you in many different ways.
Most people only know about residential solar systems but there are other types of solar installations beyond solar panels for your home.
Each of them are best suited for different types of customers but they all share the collective purpose of empowering communities to benefit from sustainable, clean energy for many years to come.
In this article, we’ll explore the three most common types of solar installations (rooftop solar, community solar, and utility-scale) and explain who they’re best suited for as well as the various pros and cons associated with them.
Rooftop Solar Panel Installation
It’s best for: homeowners and businesses (with proper roof conditions)
Rooftop Solar Explained: A rooftop solar system is the ideal option for homeowners or businesses interested in going solar. Solar panel installation on your property is the best way for you to gain access to solar energy and save on your electric bills while gaining full ownership of your energy generation.
If you’re considering installing panels on your roof, it is crucial that you set up a consultation with a qualified installer. They will help you assess the condition of your roof to make sure that it’s in suitable shape to support solar panels.
Pros: Rooftop solar owners are eligible for different tax credits or incentives (depending on where they live) that make rooftop solar even more attractive to them. For example, thanks to Solar Renewable Energy Certificates (SRECs), they get to earn money from selling any extra energy produced by their solar system to their utility.
Additionally, through a net metering billing system, homeowners can receive solar panel tax credits for sending to the grid leftover energy produced by their system during peak generation hours. These credits can later be used to offset higher electric bills when their system underproduces. Keep in mind that participating states have different net metering policies so it’s important to first check with your local utility.
Cons: Rooftop solar is not cheap. The high initial investment can be a turnoff for solar prospects but in addition to federal and state tax credits, there are various financing options available to make going solar more affordable. Even though cash payments provide the best return on investment, solar loans and leases are also viable options to help you pay for your solar panels without breaking the bank.
Community Solar
It’s best for: Renters, businesses, low-to-medium income households or anyone with inadequate roof conditions for rooftop solar.
Community Solar Explained: Joining community solar is a simple and affordable way to benefit from solar energy and electric savings if you’re not a good candidate for rooftop. By subscribing to the right solar farm (at a discounted monthly fee of 5-25%), you subscribe to a specific portion of the solar energy produced by the farm for your energy needs. After that energy is generated and transferred to your local utility grid, you will start to receive solar credits based on the share of the energy generated for you by the solar farm. You will see those credits applied to your utility bill every month helping you save up to 25% in electricity every year!
Pros: Community solar is cost-effective and helps you save thousands of dollars in utility costs over the lifetime of the project. Since it’s also a collective effort, it helps more people join in on solar. This helps with the promotion of renewable energy and its benefits like less air pollution and better health outcomes. This is especially useful for low-to-medium income communities that are disproportionately affected by environmental concerns.
Cons: Since community solar subscribers don’t own their panels, they don’t qualify for tax credits like rooftop solar owners do. Still, if their solar developer is able to claim those credits for their solar farm, they can pass on those savings to community solar subscribers resulting in additional savings for them.
Utility-Scale Solar
It’s best for: utilities or other large-scale energy buyers like corporations or government entities
Overview: This type of solar installation involves industrial-scale solar farms that produce electricity on a much larger scale. The energy produced by these power plants is sold to the grid at a wholesale rate through power purchase agreements. It is later distributed to households, businesses or other buyers that need to purchase energy in bulk.
Pros: Utility-scale solar helps to “clean up” the grid by feeding more renewable energy into it. The more solar energy gets added to the grid, the less dependent it will be on fossil fuels.This also helps utility companies meet their renewable energy targets as some states like California and Massachusetts require them to have a specific portion of their energy come from renewable sources.
Cons: Land availability is often an issue for utility-scale solar as these solar plants require a massive amount of space to be built. According to the U.S Energy Information Administration, a utility-scale solar power plant has a total generation capacity of 1 megawatt or greater. Also, utility-scale solar doesn’t benefit energy consumers in the form of direct savings. However, it helps clean up the grid energy that consumers rely on, offering them cleaner energy as well as more stable electric costs over the long run.
If you want to go solar, there’s a way for you to do it no matter your situation. If you are interested in our community solar or rooftop solar offerings, reach out to us and we will answer any questions you may have!
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Written By Alfreda Adote | Edited By Lauren McGregor