How Community Solar Credits Work on Your Bill: Complete Guide

Community Solar helps you save money with something called a bill credit. You don't need to install anything on your home or switch electric utility companies. You just see credits on your electric bill each month, and you pay for them at a discount. The difference is yours to keep!

The Short Answer

Community Solar credits show up on your electric bill as a line-item deduction reducing what you owe. They represent your share of the electricity generated by a nearby solar farm, and your share is sized to your home's typical yearly usage. Each month, the solar farm's output is measured, your utility figures out your portion, turns it into a dollar amount using a state-set formula, and posts that amount as a credit on your bill. You then pay your Community Solar provider a discounted price for those credits, usually 80–95% of their value. That 5–20% difference is your savings.  

What Are Community Solar Credits?

A Community Solar credit represents a specific quantity of electricity generated by a solar project, valued in dollars by your utility's rate structure.

How It's Different from Net Metering

Residential solar panels produce electricity that flows into your home. Excess goes to the grid, and your utility gives you credits. This is called net metering.

Community Solar works similarly but with one key difference: the panels aren't at your home. The program is called virtual net metering because credits are calculated virtually.

How Community Solar Credits Are Calculated

Examples below are hypothetical and for illustrative purposes only.

Step 1: The Solar Project Generates Electricity
Example: A 5 MW solar project produces 600,000 kWh in June.

Step 2: Production Is Allocated to Subscribers
Example: If you subscribe to 0.1% of the project, your share is 600 kWh.

Step 3: Your Allocated kWh Is Valued in Dollars
Example: If the credit value is 18 cents per kWh, your 600 kWh is worth $108 in credits.

Step 4: The Credit Appears on Your Utility Bill
Example simplified utility bill:

Electricity supply charges: $66.00
Delivery charges: $55.00
Taxes and fees: $8.00
Subtotal: $129.00
Community Solar credit: -$108.00
You pay utility: $21.00

Step 5: You Pay for Your Credits at a Discount
At a 10% fixed discount on $108 in credits, you pay $97.20.  

How you pay depends on your utility's billing setup:

One bill (Utility Consolidated Billing): Your utility handles everything on a single bill. You'll see your Community Solar credit and your discounted Community Solar charge together, and you pay your utility one amount: $118.20.

Two bills (Dual Billing): You get your usual utility bill with the credit applied ($21.00), plus a separate bill from your Community Solar provider for your discounted credits ($97.20).

Either way, you pay the same total and get the same savings. Read more about the two billing types here.

Step 6: Add It Up
Utility charges after credit: $21.00
Discounted Community Solar charge: $97.20
Total: $118.20

Whether this arrives as one bill or two, your total is the same.

Without Community Solar: $129.00.  
With Community Solar: $118.20.  

Savings This Cycle: $10.80  
Savings Over a Year: ~$130  

What the Credit Value Actually Represents

The credit value isn't the same as the retail rate you pay. It's a tariff value set by the state, typically between the utility's wholesale generation cost (lowest) and retail rate (highest).

Seasonal Variation

• Summer months: Largest credits, largest savings.

• Winter months: Smaller credits, smaller absolute savings.

Many programs will "bank" your excess summer credits and apply them during winter months to offset the lower savings. You can learn more about excess credits and how they are applied here.

Example: Credit Mechanics in New York

NYSEG customer with $180 average bill.

Summer (July):

• Your share: 520 kWh

• VDER credit value: $0.25/kWh

• Your credit: $130

• Bill before credit: $180

• Bill after credit: $50

• Pay Altus Power: $117 (10% discount)

• Total monthly cost: $167 vs. $180

• Savings: $13

Winter (January):

• Your share: 280 kWh

• Credit: $70

• Bill before credit: $200 (higher winter usage)

• Bill after credit: $130

• Pay Altus Power: $63

• Total: $193 vs. $200

• Savings: $7

Annual: ~$120-$180 savings

Common Questions About Credit Mechanics

Why does my savings percentage seem lower than the advertised discount?

Your discount applies to your Community Solar credits, not your whole electric bill. Your subscription is sized to cover most of your electricity use (usually around 80%), so part of your bill isn't covered by credits. That uncovered portion may also include some delivery charges or taxes.

For example, if your bill is $129 and you get $108 in credits at a 10% discount, you save $10.80. That's 10% off your credits and about 8% off your total bill. You're still getting the full discount in your agreement; it just applies to your credits, not your total bill.

Do Community Solar credits expire?

Many states roll excess credits forward month-to-month with annual true-ups. You can read more about that here.

What if the solar project produces less than expected?

No need to worry. Your credits are based on how much electricity the solar farm actually produces. If it produces less in a given month (because of cloudy weather or shorter winter days, for example), you'll get fewer credits that month. But you only pay for the credits you actually receive, so you're never paying for solar energy you didn't get. Your discount stays the same while your dollar savings fluctuate with production. Solar output naturally changes with the seasons, with higher production in summer and lower in winter, so it tends to balance out over the course of a year.

Can I see my credit amount in advance?

Not usually, though your provider may be able to provide an estimate based on your household usage and discount rate.

What if the credit value drops?

Your credit depends on two things: 1) How much electricity your share of the solar farm produces, and 2) How much each unit of that electricity is worth. That value is set by your utility and state rules, and it can change over time. If it goes down, your credits will be worth less, and you'll pay less for them too, since your discount always stays the same. You're always paying less than your credits are worth, so you keep saving, even if the dollar amount changes.

Are credits the same as SRECs?

No. SRECs are separate instruments sold by solar project owners. Your credits are bill credits.

Frequently Asked Questions

How do Community Solar credits work in simple terms?

A nearby solar project produces electricity. Your utility gives you credits representing your share. You pay the provider a discounted rate for those credits. The difference is your savings.

Where do I see Community Solar credits on my bill?

As a line item on your utility bill, labeled "Community Solar Credit," "Virtual Net Metering Credit," or similar — it depends on your state and utility.

How much is a Community Solar credit worth?

Typical credits range from $20 to $150 per month for residential subscribers.

Do I pay two separate bills?

Depends on your utility. Some combine everything into one bill (Utility Consolidated Billing) while others send your utility bill and a separate Community Solar bill (Standard Dual Billing). Your savings are the same either way.

Can I cancel any time?

With Altus Power, yes — you can cancel anytime, for any reason. In many cases you can transfer your Community Solar subscription to a new meter if you are moving. Just reach out to hello@altuspower.com.

What happens to unused credits?

Many states let excess credits roll forward, and annual true-ups address any remaining imbalance. You can read more about that here.

Is virtual net metering the same as Community Solar credits?

Virtual net metering is the rule that makes Community Solar credits possible. It lets your utility credit your bill for your share of an off-site solar farm, just as if the panels were on your home. States call it different things, but it works the same way.

The Bottom Line

Community Solar credits are the mechanic behind how you save: a nearby solar project generates electricity, your utility gives you a credit equal to your share at a state-regulated value, and you pay the provider a discounted rate for those credits.  

See Community Solar options in your state →

Altus Power is a leading commercial-scale power company with 1.3+ GW of operating solar across 30 states and Washington DC. One of the pioneers of Community Solar, Altus serves more than 40,000 subscribers across 9 states including New York. Learn more about Altus Power or explore our Community Solar FAQ.