Generally, a company that installs a commercial solar array has the goal of reducing energy costs. However, there are many ways to measure solar electricity and subtract it from energy bills. When a commercial building has enough space for on-site solar panels, electricity can be consumed directly while excess production is exported to the grid in exchange for bill credits. However, not all commercial energy users have a suitable area for a large solar panel, but they can save on energy bills with an outdoor installation.
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Here we will discuss the top 3 energy metering options available for commercial solar installations:
- On-site net metering
- Remote measurement
- Community solar energy
Being able to reduce energy costs with an outdoor solar panel is especially useful in places like New York City, where finding space for a commercial photovoltaic system can be a challenge. Here we will compare the three measurement options listed above, mentioning the cases in which each of them is viable.
On-site solar energy
This is the simplest setup: have a commercial solar system and the building using its electricity behind the same energy meter. Solar electricity is consumed directly by on-site loads and surplus production can be easily exported to the grid. In New York State, compensation received for solar exports is determined by the size of the project:
- Commercial solar projects below 750 kW AC receive Net Energy Measurement (NEM).
- Larger solar panels get the Value of Distributed Energy Resources (VDER) .
Net energy measurement or NEM is a simple concept. The excess electricity from a commercial solar panel is measured and subtracted from your energy bill. If there is a month in which the solar energy credit is higher than the amount charged by your electricity company, the difference is accumulated for the following month.
The Value of Distributed Energy Resources or VDER is a compensation method that considers the location of solar panels and when they provide electricity. NYSERDA has developed a calculation procedure that considers several factors:
- energetic value
- Capacity value
- Environmental value
- Demand Reduction Value
- Significant value of the locational system
- Market transition credit, or community credit, for community solar projects
The VDER compensation method is the default option for solar projects greater than 750 kW AC. Solar PV systems below 750 kW AC get net energy metering by default, but you can choose VDER if the project only serves one load.
Remotely measured solar energy
As mentioned earlier, not all commercial buildings have enough space for a solar panel. For example, tall buildings have a very small roof area relative to their floor area, and Mechanical Equipment further limits the space available for solar panels. Remotely measured solar energy is an excellent option in these cases:
- A commercial solar panel is installed on another property with sufficient space.
- Electricity generation from the remote photovoltaic panel is credited using the VDER method, and the resulting value is subtracted from your building's energy bills.
- The savings achieved by a remotely metered solar panel can be split across multiple buildings with different energy meters.
Commercial buildings with different utility bills can share the savings achieved by a remotely metered solar panel. However, they must all be located in the same dealership's service territory for this to be possible.
Community Solar Energy
A community solar project is very similar to a remote metering project in that many consumers share in the savings from a remote PV array. However, a commercial photovoltaic array must meet certain requirements to be considered a community solar project in NY State:
- Have at least 10 subscribers, each receiving at least 1,000 kWh per year.
- Community solar projects serving tenants in multifamily buildings may have fewer than 10 subscribers.
- Subscribers with demand greater than 25 kW are permitted in community solar projects, but cannot use more than 40% of electricity generation.
In addition to these general requirements, commercial solar projects must meet technical requirements provided by the local utility. Community solar energy is often referred to as Community Distributed Generation (CDG).
If your community solar project is located in Con Edison's service territory, the NY-Sun Megawatt Block Program offers an additional $200/kilowatt incentive in addition to the normal incentives offered for non-residential solar panels.
