What is shared solar vs. rooftop solar?

Electricity harnessed by solar panels from sunlight is one of the best sources of green alternative energy. Because sunlight is readily available in nature and we receive it every day. Shared solar power is a good option for renters or home and business owners with unsuitable roofs to produce their own clean energy.

In some rare cases, participation in a community solar project may even be an alternative to rooftop solar where property has viable roof for installing solar panels. On the other hand, rooftop solar is where homeowners install panels on their individual homes by buying panels. A private home owner uses harnessed electricity from the sun to conserve energy as well as reduce everyday electricity costs.

Environmental consideration

The best practice is for projects to be located in proximity to existing grid infrastructure and on otherwise unusable land (e.g. former landfill) to maximize environmental outcomes. Rooftop solar makes use of otherwise ‘empty’ space and is located close to the point of power consumption (i.e. home or business).

Billing and benefit payout

With shared solar, the billing is administered by utility, or solar project administrator or a combination of both. The benefits are delivered by either virtual net metering credit on the monthly electricity bill or a genuine arrangement with the community solar supplier, whereby the utility bill is reduced through solar credits and the community solar developer sends separate bills. With rooftop solar, billing and benefit payout is also administered by utility and benefits generally are paid via solar Net Metering credits on the participants power bill, or through avoided electricity purchase.

Property value impact

As agreements are between consumer and utility, any value associated with system (subscription or purchase) would not transfer to residence of the participants. With rooftop solar, it has been seen to improve property value.

System Lifespan

In this view, the typical expected life of system for both the rooftop solar and shared solar is 25-30 years, although there are instances where some projects may extend longer.

Maintenance

Regarding the shared solar panel, with both purchase and subscription, maintenance it is the responsibility of the project developer/administrator. However, with the rooftop solar, if the PV system is owned, you maintain the system. If leased, then the system maintenance is the responsibility of the solar company that owns the PV system.

Energy Independence

Rooftop solar allows inhabitants in a locality to produce their own energy, and shared solar brings the same benefits to communities. Both help the U.S to rely less on global energy markets, protecting us from unstable energy prices and supply disruptions. This concept is termed “energy resilience”.

Less pollution

A direct effect of our reliance on fossil fuel is pollution: their emissions contaminate local water sources, leading to cancer and other health problems. They also harm the economy and the natural world by destroying ecosystems and livelihoods. These are the harmful fuels that solar replaces. Other than that, the fuels used to manufacturer and transport the panels, shared solar panels, and rooftop solar produce no polluting gasses.

Equally important, shared solar can provide access to solar energy for people who may be unable to install their own rooftop solar panel systems. One of the largest community solar benefits is that it can include renters, who may be prohibited from installing solar panels, and homeowners whose roofs are too shaded or too small to accommodate solar panels.

In the same line of thought, the cost benefits of using shared solar panels quickly add up when looked at over a long period of time. The argument of many of the bigger corporations when looking at switching to solar power is the initial cost of the materials and installation versus the time it takes to be paid back. However, if the business is set up to last throughout the next decade, not having to have to pay for electricity immediately begins to offset the cost of installation. It is estimated that it can take anywhere from eight to twelve years for large companies to see a full return on their investment. However, being able to declare the company’s product has been made with a renewable source of power is another wonderful benefit to using solar power.

In conclusion, the shared solar vs. rooftop solar has quite a lot in common although they still portray significant differences.