Understanding Savings and Billing with Nexamp Community Solar
Community solar offers an easy way to lower your electricity costs while supporting renewable energy. To help you make the most of your subscription, here’s a clear breakdown of how savings and billing work, along with what to expect throughout the year.
Once you are placed on a solar farm, or your farm becomes operational, your solar share begins generating community solar credits based on the power it produces.
Once credits are applied to your utility bill, Nexamp bills you separately for the credits at a discounted rate. This allows you to see savings directly on your utility bill without any upfront costs or long-term commitments.
What are community solar credits?
These are credits that reflect the clean energy your share of the solar farm generates. They’re applied directly to your utility account to offset the charges for the electricity you use.
How Billing Works
As a Nexamp subscriber, you’ll receive two separate bills each month: one from your utility company and one from Nexamp. Your utility bill reflects your total energy charges minus the value of the community solar credits applied to your account. Nexamp then sends you an invoice for those credits, billed at a discounted rate. This means you’re only paying a percentage of the credits' value. The difference is your savings.
Here’s a simple example:
- Your solar share generates $100 of electricity that is sent to the grid.
- Your utility gives you a $100 credit on your bill to compensate you for the electricity your solar share produced.
- Nexamp bills you <<100-discount>> for the $100 credit
- The difference is yours to keep.
Note: Your savings will vary from month to month and are fully realized over the course of the year.
It’s also important to understand that Nexamp charges you for your solar credits after you receive them, not in advance. There is always a delay between when you see credits on your utility account and when we bill you. This is because we are validating that everything is accurate and waiting for confirmation from the utility that credits have been placed on your account.
While the two-bill system may seem unusual at first, it’s designed to make your savings clear and straightforward. The credits reduce your utility bill, and Nexamp invoices you separately to reflect the discounted cost of those credits.
Seasonal Variations in Savings
Solar energy production naturally fluctuates throughout the year, which means the credits your solar share generates will vary with the seasons. This seasonal variation affects how your utility bills and Nexamp invoices look month to month, but your subscription is designed to balance out over the course of the year.
Please Note: Your savings do NOT vary based on your electricity usage, they change based on how many community solar credits your share of the farm generates.
It’s important to understand that savings can vary month to month but over the course of the year. You will save <<discount>> annually on your total electricity costs.
Summer: Banking Extra Credits
During the sunny summer months, your share of the farm typically generates more credits than you need. When this happens, your utility will “bank” the extra credits for future use. For example, if your July bill is $100 but your farm generates $200 worth of credits, the remaining $100 in credits is saved for future use.
This surplus can make your Nexamp invoice during summer higher than your utility bill because Nexamp invoices you for the full value of the credits generated. However, these excess credits help you "prepay" for winter months when solar production is lower.
Winter: Using Banked Credits
During winter, shorter days and less sunlight mean your share of the farm generates fewer credits. This often results in a utility bill that isn’t fully offset by credits generated during that period. For example, if your January utility bill is $200 but your farm generates only $100 worth of credits, the utility applies credits from your “bank” to cover the difference.
When Do Savings Start?
Your savings don’t begin immediately after signing up. Due to the high demand for community solar, customers often enroll while their solar farm is still under construction. Once you are placed on an existing farm, or the new farm goes live, it takes about two to three billing cycles for the credits to start appearing on your utility bill. About 30 days after you begin seeing credits on your utility bill you will receive your first Nexamp invoice for the applied solar credits.
Key Takeaways
- This is not an across-the-board discount on your utility bill: The credits generated from your solar share are not free, but you get them for <<discount%>> less than they are worth. It's like buying discounted gift cards for your electric provider.
- You will not be charged the same each month: Billing varies depending on the credits generated by your share of the solar farm and the timing of their application to your account.
- You will see greater savings at different points during the year: Summer months typically generate more solar credits while winter months rely on banked credits to balance out costs and create consistent savings.
- You will receive two separate bills: Your utility bill reflects your usage, minus the solar credits applied to your account. Your Nexamp invoice charges you for those credits at a discounted rate.
- Nexamp bills for credits after they are applied: There is a delay between when credits appear on your utility account and when you’re invoiced by Nexamp. This allows Nexamp to confirm that your credits have been correctly applied to your utility bill.
Savings begin after you are placed on a farm: It may take 2–3 billing cycles after the farm goes live for credits to appear on your utility bill.