What’s the Difference Between Community Solar and an Energy Supplier?

It's a common misconception that Community Solar allows subscribers to power their homes with solar energy. But Community Solar is not a retail energy supplier. Instead of powering individual home directly, clean energy generated by shared solar farms goes into local electricity grids, and that energy is used in combination with energy derived from other sources (wind, coal, nuclear, etc.) to power households and businesses throughout that community.

Want to know more about the difference between Community Solar and energy suppliers? We’ll break it down for you.

Community Solar

Community Solar is a state-supported clean energy program that connects a geographical area and its residents, businesses, and institutions to a nearby solar project through a virtual subscription. As Community Solar provides clean electric power to that area’s energy grid, customers receive solar credits on their electricity bill for their share of the energy output.

Altus Power’s Community Solar program works that same way. Homeowners and renters alike can subscribe to Community Solar and start saving, since subscribers are guaranteed to receive solar savings of 5 to 20%, depending on their location. There’s no equipment to install, meaning anyone can access the benefits of solar power, even if they don’t own their property, don’t have the resources to install solar panels, or don’t have suitable space for panels. Even better, a Community Solar subscription through Altus Power is free, and subscribers can cancel at any time.

Energy Supplier

Meanwhile, “energy supply” refers to the energy source that powers your home.  

In regulated states, vertically-integrated utilities are responsible for the generation, transmission, and distribution of electricity. That means you don’t get a say in what kind of energy is being used to power up your lights and household appliances. Deregulated states, on the other hand, allow market competition for retail energy supply, while utilities maintain the distribution of electricity, as the U.S. Environmental Protection Agency (EPA) reports. This means you can shop around for an energy supplier of your choice, bypassing the standard supply provided by your utility company.

Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Ohio, Pennsylvania, New Hampshire, New Jersey, New York, Rhode Island, Texas, and Washington D.C. are fully deregulated, according to the EPA. California, Georgia, Michigan, Oregon, and Virginia are partially deregulated.

The U.S. retail energy suppliers with the most customers include Constellation, Energy Harbor, and Direct Energy Business, according to data shared by Diversegy.

If you use a retail energy supplier, you’ll pay both the supplier for the electricity generation and your utility for the delivery — perhaps even on the same bill, if consolidated billing is available to you.

Can I have both?

Absolutely! If you live in a deregulated state, you are free to shop around for the best retail energy rate, or if you’re passionate about sourcing your power from renewable sources like wind and solar, you can do that and benefit from a Community Solar subscription simultaneously.  

If you live in a regulated state, you won’t be able to select your energy provider — but if Community Solar is available in your zip code and utility zone, you can apply to join a nearby project and once enrolled, you will start saving on your electricity costs.

To check your eligibility and apply for Community Solar, head to join.altuspower.com, and email any questions to Altus Power’s Customer Experience Team at hello@altuspower.com.

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