July 23, 2024
Understanding Maine's Net Energy Billing (NEB) Program, its impact on Community Solar, and how Community Solar billing works for Maine subscribers.
Maine’s Net Energy Billing (NEB) Program is a vital initiative designed to promote the development of solar energy in the State of Maine, which includes provisions for Community Solar projects, making solar energy more accessible and financially viable for residents and businesses.
This article will expand upon the NEB program and how it’s Community Solar initiative plays a critical role in Maine’s renewable goals.
The NEB Program enables Maine residents who generate their own electricity (through owned solar panels or through subscribing to a community solar project), to earn kWh credits for the surplus energy they supply back to the grid. These credits are then applied to their future electricity bills, effectively reducing their overall energy costs. The program is available to all utility customers in Maine and supports both individual and Community Solar projects.
Community Solar projects allow multiple customers to benefit from a single solar installation. The NEB Program supports Community Solar by providing a framework through which participants can earn and utilize kWh credits. Here’s how it aids Community Solar:
Community Solar is a renewable energy program that allows multiple residents to purchase the solar energy directly from a developers’ local solar garden at a discounted rate.
Step 1
A developer builds a solar garden and delivers solar energy directly to the local utility. Residents connected to that utility can “subscribe” to the solar garden, reserving a portion of that solar energy for their electricity needs.
Step 2
The utility sends electricity to the residents as usual. Community Solar subscribers will now receive “credits” on their monthly electric bills, reducing what they pay their utility provider for electricity.
Step 3
After paying the remaining balance to the utility, subscribers then pay for their solar credits at a guaranteed discount from their community solar provider, resulting in cost-savings.
Subscription: To start, residents or businesses sign up with a community solar provider and reserve a certain percentage of the solar project’s output. This percentage determines how many of the credits generated by the project you will receive on your electric bills.
Energy Production: The community solar project generates electricity (kWh), which is fed into the local utility grid. The total amount of electricity produced is measured and recorded.
Allocation of Credits: Based on the project’s production and your percentage of the subscription, a proportional amount of credits is allocated to your electric utility account. For instance, if the project produces 100,000 kWh in a month and you are entitled to 1% of the project’s output, you would receive 1,000 kWh in credits.
Application of Credits: These credits are then applied to your monthly electric bill as a kWh deduction, offsetting the cost of the electricity you consume. If the credits exceed your monthly electricity usage, the excess credits typically roll over to the next billing period.
Billing Statement: Your utility bill will detail your electricity usage (kWh), the amount of credits applied (kWh), and the remaining balance (if any). It’s important to understand that you will still receive two bills: one from your utility company (reduced by your credits) and another from your community solar provider for your subscription, at a discounted rate compared to standard electricity rates.
Subscribers can see their solar credits on page 2 of their CMP under the “Your Generation Details (kWh)”.
CMP Electric Bill
Approximately 2 weeks after receiving your CMP electric bill (with solar kWh credits applied to your bill), you will receive a separate bill from your Community Solar provider for the same kWh credits you received.
These kWh credits are then purchased at a guaranteed 15% discount, resulting in overall savings.
Your community solar discount may vary by provider though Solar Gardens offers a guaranteed 15% discount to all new Central Maine Power subscribers.
To calculate your Community Solar Savings: Subtract what you paid for your solar credits + remaining CMP balance to what you would have paid CMP for electricity without receiving solar credits.
See example below
If you’d like to better understand how Community Solar billing works and what the billing timeline looks like for subscribers, check out our support videos below:
Maine’s Net Energy Billing Program is essential for promoting solar energy, particularly through Community Solar projects, by providing a stable and supportive framework. Community Solar offers significant advantages, including cost savings, environmental impact, and greater accessibility to renewable energy. Maine residents can enjoy these benefits through the NEB Program, supporting local solar projects and contributing to a sustainable future.
For more information on how to join a Community Solar project in Maine and start saving on your electricity bills, visit JoinSolarGardens.com
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