Quick definition: Community solar refers to a shared solar power system where multiple businesses can subscribe to receive clean energy and cost benefits without installing panels on their own premises.
Table of contents
- Understanding community solar
- Key benefits for businesses
- Implementation in India
- Practical applications
- How Neufin can help?
- Related terms
- FAQs
- Additional resources
Understanding community solar
Community solar represents a revolutionary approach to renewable energy adoption where multiple participants share the benefits of a single solar installation. This model allows businesses to access solar power without the need for individual rooftop installations, making it particularly attractive for companies operating in rented spaces or buildings with limited roof access.
Key benefits for businesses
1. Cost savings: Businesses can reduce their electricity expenses by 10-30% through community solar subscriptions. The shared infrastructure model eliminates individual installation and maintenance costs.
2. Environmental impact: Participating businesses can reduce their carbon footprint significantly. A typical 1MW community solar project can offset approximately 1,500 metric tons of CO2 annually.
3. Flexibility and scalability: Subscribers can adjust their participation levels based on energy needs, making it ideal for growing businesses. No long-term infrastructure commitment is required.
4. ESG compliance: Community solar participation helps businesses meet environmental, social, and governance (ESG) targets, enhancing corporate reputation and stakeholder relations.
Implementation in India
In India, community solar projects are gaining traction under various state policies. Maharashtra’s community solar policy allows multiple commercial entities to participate in solar parks, while Gujarat’s solar policy promotes industrial cluster-based installations. The Ministry of New and Renewable Energy (MNRE) has set guidelines for group captive projects, enabling businesses to collectively invest in solar installations.
Practical applications
Indian businesses are implementing community solar in various ways:
- Industrial parks in Tamil Nadu sharing 5MW solar installations
- Commercial complexes in Bengaluru utilizing shared solar facilities
- SME clusters in Maharashtra participating in group captive projects
How Neufin can help?
Neufin helps companies successfully participate in community solar projects and make the switch to renewable energy. We provide the fastest way for companies to buy renewable energy in India. Companies choose Neufin because we provide –
- Guaranteed cost savings – Lower your electricity bills without operational headaches.
- End-to-end execution – From feasibility to power delivery, we handle everything.
- Zero upfront investment options – Easy and flexible financing through Neufin Capital
Related terms
- Group captive projects
- Power purchase agreements (PPAs)
- Virtual net metering
- Renewable energy certificates (RECs)
Frequently Asked Questions (FAQs)
What is the minimum investment required for community solar participation?
The minimum investment varies by project but typically starts from ₹5 lakhs for business subscriptions in India.
How long does it take to implement a community solar subscription?
Implementation typically takes 2-3 months, including documentation and regulatory approvals.
Can businesses change their subscription capacity?
Yes, most community solar programs offer flexibility to adjust subscription levels annually based on energy needs.
Additional resources
- MNRE guidelines for group captive projects
- State renewable energy policies
- Solar energy corporation of India (SECI) documentation
Last updated: January 2024
Disclaimer: Information provided is based on current regulations and market conditions. Specific implementations may vary based on state policies and local regulations.
