certs community solar subscriber tips · certs: minnesotans building a clean energy future how can...

TIPS FOR SUBSCRIBING TO ACOMMUNITY SOLAR GARDEN

What does a good contract look like?

UTILITY RATE

INITIAL PRICE & ESCALATOR

UTILITY RATE

PERCENT OR DOLLAR DISCOUNT

VS

Project Construction and TimingYou should ask the company where the project(s) that you would be eligible for are in thedevelopment and approval process. You will not see a credit on your utility bill until the project is installedand producing electricity. Ask your developer when you can expect to see your first bill credits, and learn moreabout the development and approval process at mncerts.org/solargardens/xcel-map.

Subscription Rate Tied to ProductionBe sure that your subscription agreement clearly indicates that your subscription payment is tied tothe garden’s actual electricity production.When this is the case, the developer or operator has moreincentive to quickly resolve system maintenance or repairs needs.

Transferability and Early TerminationIt’s important to know what happens if you move out of the service area, die, or cancelthe subscription. Many developers will have a different procedure for each of those three scenarios. For example, if you move out of the utility territory, some developers take back the subscription without penalty, whileothers charge a set fee. Some developers will not charge a fee if you transfer your subscription to another eligiblesubscriber. If you decide simply to cancel, there will be a higher fee. It is up to you what terms are acceptable, but theyshould be VERY clear in the agreement. You should also understand what procedures to follow, who is responsible foreach step, and what the associated costs may be.

Subscription Price: Escalator vs. Discount Models

n Escalator: This model sets an initial subscription price and subscription rateescalator. In general, the lower the starting rate and lower the escalator,the better. The initial subscription price should be close to your monthly billcredit (mncerts.org/csg-subscribers), and the escalator should be less thananticipated utility rate increases. Xcel Energy rates went up an average of3.5% annually from 2000-2014, so any escalator should be less than that.Your ultimate savings will depend upon the difference between yoursubscription price and actual utility rate increases over time. Developers willassume different utility rate increases in estimating your potential savings.Compare the estimates and assumptions at mncerts.org/csg-calc.

n Discount: In this model subscription prices are set to be consistently lowerthan your utility rate by either a stated percent or dollar amount. Though itcould provide smaller financial returns, this approach provides a higherlevel of certainty for future savings.

Maybe you’ve been approached by a company or attended a localevent, and now you’re thinking about subscribing to a communitysolar garden. This document provides guidance about how to getstarted and highlights key resources to help you move forward.

Updated 7/24/2017

mncerts.org/solargardensLearn more, ask questions, take action:

CERTs: Minnesotans building a clean energy future

How can you learn more about companies?

What other resources are out there for you?

You can research community solar developersat CleanEnergyProjectBuilder.org. It’s a goodidea to contact at least 2-3 companies tocompare their subscription terms.

Guide to CommunitySolar GardensThis guide provides anintroduction to key conceptsand definitions, as well asbasics about the how, why,how much, and who from asubscriber's perspective.mncerts.org/csg-intro

Subscriber AgreementDisclosure ChecklistThis checklist outlines whatsubscriber agreements shouldaddress and the questions thatcan be asked up front to ensureclear understanding ofagreement terms.mncerts.org/csg-disclosure

Questions SubscribersCan Ask of OperatorsThis document begins withwhat you should know as apotential community solargarden subscriber, thencontinues with questions youshould ask of companies.mncerts.org/csg-subscribers

Subscriber FinancialDecision Making ToolThis calculator tool allowsyou to test subscription ratesto help you understand yourpotential financial advantageor disadvantage as acommunity solar subscriber.mncerts.org/csg-calc

Updated 7/24/2017