Community Solar vs. Utility-Scale Solar Projects

Our team at New Era Land Services LLC typically supports utility-scale solar projects, but recently there’s been some industry chatter about “community solar” projects. What is community solar and how does it differ from a utility-scale project? Let’s take a closer look.

Utility-Scale Solar Projects

Utility-scale solar projects are usually between 50 MW and 300 MW and require at least 600 acres of land. Replacing a retiring natural gas or coal-fired energy facility is a common use case. Utility-scale solar projects have become increasingly common across the United States (including states like Indiana with regulated energy markets) as communities, individuals, and utilities seek to harness renewable energy.

Proximity to an existing substation with the right capacity can make or break a utility-scale project. After all, building a new substation can cause significant delays and lead to millions of dollars in additional costs. Project developers often turn to companies like New Era Land Services to acquire land in the right location—ideally, near a substation with a 345 kV line. That said, upgrading an existing substation or constructing a new one could still be feasible depending on the project’s size. Spending $10 million on substation upgrades is a relatively small expense on a $200 million project.

Community Solar Projects

The U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy provides a helpful community solar overview on its website. In summary, community solar allows people within a specific area to enjoy the benefits of solar energy—without having to install solar panels on their homes or businesses. Energy produced by community solar projects is funded by the utility’s subscribers who, in turn, receive a financial incentive in the form of a credit on their electricity bills.

Compared to utility-scale projects, community solar projects may produce less energy (approximately 10 MW to 25 MW) and likely require less land. This simplifies life for solar energy developers, especially when it comes to planning areas of interest and engaging landowners. Acquiring 50 acres from one landowner for community solar is usually faster and easier than trying to piece together 2,000 acres for an industrial project. Existing substations are better equipped to handle energy produced from smaller community projects, thereby reducing the need to upgrade or construct new infrastructure. Perhaps best of all, community solar offers energy-minded consumers a way to benefit from solar energy without altering their property.

Community solar is not yet a reality in all 50 states, however. Consumers living in states with deregulated electricity markets (such as California, Illinois, and Ohio) are more likely to find community solar programs in their areas.

Land Services for Utility-Scale and Community Solar Projects

Contact New Era Land Services to discuss your upcoming utility-scale or community solar projects. Solar energy project developers across the lower 48 states can partner with us for lease acquisition, project management, right of way, and other land-related needs.