There are three different ways in which community solar programs are structured to help save on electric bills. Depending on the available projects in your area, they will typically offer one of the following rate-structures:
- Savings per kWh: This type of program guarantees a certain monetary savings per kWh on your utility’s rate. The most common discount for this program type is $0.01/kWh savings. For example, if you currently pay $0.19/kWh to your utility, you would pay $0.18/kWh under this type of program instead. Even if your utility raises or lowers its electric rate, you would still pay $0.01/kWh less.
- Percentage based savings: This type of program may save you approximately 5 to15% on your current monthly electric bill. Savings rates will vary by program in your area.
- Rate-based savings with fixed escalator: In this type of program, the solar facility will match your utilities current kWh rate. Based on both historical utility rate hikes and future projections, the solar facility will set a pre-determined annual rate increase that is projected to be less than that of the utility rate increases. As an example, if it is projected that utility rates will increase 25% in the next 10 years, the solar facility may set a rate increase that would equate to only a 15% increase over that same period.