Community Solar is a program designed to allow individuals to partake in the benefits of solar energy, even if they are unable to install solar systems on their properties. The reasons for this inability could range from renting their homes to lacking sufficient sunny space on their rooftops for a full-fledged solar panel system. Community Solar offers these individuals the chance to own their renewable energy system and receive credit on their electric bills.
The electricity generated by Community Solar projects, which harness sunlight, flows into the utility grid. Share owners then sell this energy back to the local utility company. There are two primary models for Community Solar: Ownership and Subscription.
In a subscription-based Community Solar model, a third-party developer owns and operates a solar field, thus receiving some of the financial benefit. Members of the Community Solar initiative pay for a share of the electricity generated by their project and receive credit from the dollar value produced by it. They can either be allocated a certain number of solar panels in the project or purchase a specific amount of electricity.
When members purchase panels, it falls under an ownership model. Under this model, members receive credits based on the panels they own in the project, leading to potential savings on their electric bills. All benefits – including tax benefits and electric savings – go to the owners of the solar field, making it an owned asset for member-owners.
Community Solar provides everyone with an opportunity to reap the benefits of solar energy and save on their electric bills while also locking in their electricity rates. It also aids communities in earning money and creating jobs.
Currently, Community Solar is under debate in Ohio’s legislature. House Bill 197 was introduced in 2023 with an aim to make Community Solar an option for Ohioans – something that isn’t currently available. State Representatives Jim Hoops (R- District 81) and Sharon Ray (R- District 66) introduced House Bill 197 with an objective to establish Ohio’s first Community Solar Pilot Program. If adopted, third-party developers and interested owners are expected to quickly adopt the benefits of a Community Solar program in Ohio.
