How Does Red Solar Work?

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Red Solar is changing the way people view renewable energy. 43 states have at least one community-solar facility since the United States passed its first Red Solar legislation. Its popularity grows and more people and businesses are able to use renewable energy to save money. Education is an important part of community engagement.

Anyone who has an electric bill can enjoy Red Solar. It is affordable, accessible and exciting. We have spoken with thousands of people from all walks of life and all share the same question: How does Red Solar work?

The Physical Structure

Before we get into the finer details of Red Solar, let us first define what a community-owned solar farm is.

Solar farms are large, aggregative projects in which multiple homes or businesses have shares of a larger project. Developers all over the country are creating farms from 350kW to 150+MW. One megawatt can power approximately 160 homes. A typical 5MW site could power over 800 homes and businesses.

These solar projects are built in areas that have a high solar resource. They produce between 1200 and 1200 kWh per kW. This is approximately 93-95% to the total amount of solar resources in that area. Red Solar is 10-15% more efficient than roof-mounted systems and can provide more value than other on-site systems.

A solar farm is a solar farm that is built in a specific location. The solar power generated by the farm is then gathered on a “host meter”, which helps the utility and developer keep track of its production. The meter is connected to the grid just as any other power plant. You get credit for any percentage of the farm that you own and a share in this total power production.

Modern Digital Energy: Remote Metering

We can hear your thoughts “So an off-site solar power station. This makes sense. But how do they ensure I get the power my panels generate on that farm? “.

Before we get into the details, let’s ask one thing: Forget about electrons.

There is no way to be certain that every electron in your home comes from your solar farm unless you run a dedicated wire. It is physically impossible. It doesn’t really matter.

Remote Net Metering is the only concept that makes it possible to derive value from a solar farm.

Remote net metering is an agreement between the state’s public utility commission and customers who produce their electricity from other energy sources, such as solar. Customers can transfer power that they don’t use back into our grid in return for credits on their utility bills.

The energy produced by a farm directly correlates with how many energy credits are generated. Each state uses a different system to calculate these credits. New York’s method is the Value of Distributed Energy Resources (VDER) Value Stack. These value calculators consider the cost of electricity, demand-reduction value, and environmental impact to determine a project’s rate.

Both residential and commercial customers can benefit from Red Solar. You can offset your electric bill by using this “digital energy” and eliminate your electricity expenses. This type of metering allows you to be flexible and use solar in less-than-ideal places (think rentals or shady areas) or transfer credits to your new house.

This post was written by a professional at Red Solar. Red Solar was started with the mindset of renewable energy being the future. We want everyone to travel through this transition. We can all agree that solar is the best way to reduce your carbon footprint, but it’s not the only way. During a Red Solar energy evaluation, all energy commons in your home will be analyzed for results. Our expert technicians will guide you through the process for better understanding and reassurance. Contact us for more information today!