FAQ and Answers for Community Solar
Solar panels absorb the sun’s energy throughout the day and convert it into direct current (DC) electricity. Most homes and businesses run on alternating current (AC) electricity, so the DC electricity is then passed through an inverter to convert it to usable AC electricity. See how solar panels produce electricity for homes, businesses, and farms.
Home and business owners may realize a 10% ROI or better. Given their longevity, the systems may pay for themselves well within their lifetime. As energy prices continue to rise, the return on investment should also improve.
Solar is one way to reduce carbon dioxide production by offsetting coal burning for power production. The Midwest is powered largely with coal, so each kWh produced from a solar system may save one pound of coal from being burned. A solar electric system will offset the energy to produce the modules in less than 3 years – that means truly clean energy for the remaining life of the system over the next 25+ years!
Your best starting point is to determine how many kilowatts of power you need is to look at how many kWhs (kilowatt hours) home, business, or organization used in each of the previous 12 months. With this, we can compare expected monthly solar energy production to your electricity usage. Annual electricity usage total is also a good start. You’ll find your monthly kWh records via paper copies of your utility bills, a phone call to your utility provider, or through your online utility account.
A south-facing area that gets sun from approximately 9 am to 3 pm is best. Solar systems also work well even when facing west or east, if that’s your best option. We can mount the systems on the majority of roof types, including a variety of materials used on pitched and flat roofs. Systems can also be ground-mounted.
Solar electric systems are designed last more than 25 years. Many solar electric systems from the 1970s and 1980s are still functioning today. Solar electric systems need very little maintenance and have a long functioning life. The solar electric panels themselves have a 25-year production warranty and will sustain 1-inch hail impact at 50 mph.
A community “shared” solar array is a single array that provides solar energy to multiple subscribers. Community solar is contrasted to the typical rooftop solar array, in which one solar array provides solar energy to a single energy user. Virtual net metering is the billing arrangement that allows energy users to subscribe to community shared solar arrays and receive bill credits.
Customers of the three Investor Owned Utilities in Illinois, including Ameren Illinois, ComEd, or MidAmerican – including those who purchase their electricity supply through a third-party or retail electric supplier (RES) – may subscribe to a community solar array in their utility territory. The minimum subscription amount will be 200 Watts (or 0.2 KW).
For larger commercial and industrial electricity users, there is a limitation that no single subscriber may subscribe to more than 40% of a community solar project in Illinois. However, a single subscriber may subscribe to multiple community solar arrays.
Virtual Net Metering allows electricity produced (in KWHs) by a community solar array, located anywhere in the same utility service territory as your electric meter, to be credited towards the amount of KWHs that you used – although the KWH credits will only apply to the electric supply charges, not the delivery charges, taxes, or fees charged by the utility.
The energy production of each community solar array will be metered and divided among the subscribers based on the amount of KWs included in individual subscription contracts. The community solar array’s KWHs are credited to your electric bill through a policy called Virtual Net Metering.
Here is a basic example of how a community solar subscription will affect an Ameren IL electric bill:
Household Electric Usage in the month of September = 800 KWH
Community Solar Energy Production in September = 500 KWH
September Electric Bill with Community Solar Subscription
300 KWH @ Non-Community Solar Electric Supply Rate
800 KWH @ Delivery Rate
800 KWH @ Taxes & Fees
500 KWH @ Community Solar Subscription Rate (approximately 10% lower than non-Community Solar supply rate)
Subscriptions to community shared solar arrays will be both transferable and portable within the same utility service territory. You are able to cancel your subscription at any time.
Despite the clear advantages, billing and and regulatory complications can pose a significant challenge, and so adoption in Missouri has been slow.
There are just a handful of community solar arrays around the state. These have been sponsored by either a rural electric coop or a municipal electric utility.
At this time, Ameren Missouri has developed their own community solar program, and has already issued all subscriptions for existing community solar arrays developed by the utility in 2019.
You can do your part to expand community solar in Missouri by calling your legislator about your desire to increase community solar subscription options for utility customers.