What is the difference between Solstice and an Energy Service Company (ESCO)?

These days, there are a lot of energy options out there and it can be hard to understand the difference between them. Many people know about or have even joined Energy Service Companies (ESCOs). ESCOs function as energy suppliers that acquire energy - be it electricity, renewable energy, or natural gas - from a wholesale market and sell it to homes and businesses. Because many ESCOs supply customers with energy acquired from renewable sources - wind and solar - many people mistake Solstice for an ESCO. However, Solstice is not an ESCO and even households whose energy is supplied by an ESCO can join their local community solar farm. 

Below is a breakdown of how Solstice is different from an ESCO and why even those with ESCO supply contracts can benefit from community solar: 

The Short Answer:

• Solstice is not an ESCO. Community solar and ESCOs are two distinct mechanisms that are not mutually exclusive. 

• Community solar is an additional layer, which will offer you savings on your total electricity bill - whether or not you have a third-party supplier like an ESCO. 

• Community solar is a subscription service! You aren't changing where you buy power or who it is supplied from. You're just getting a discount on your electricity for supporting the solar farm.

Community solar acts more like rooftop solar: you get credits on your electric bill for the energy your panels produce. These credits act as an add-on to your utility bill. Nothing about your electricity supply or delivery will change - you just receive a community solar discount on your bill for supporting your local solar farm. 

Community solar offers a guaranteed rate of savings on the energy your panels produce. So while your energy costs may fluctuate from month to month, at the end of the year, you’ll still see savings on your energy costs.

The bottom line is that community solar subscriptions are flexible. Joining Solstice will not change anything about the way you currently receive your energy. If you are part of an ESCO, you can still access community solar with Solstice without violating the terms of your contract. Joining community solar will simply allow you to access an energy discount for taking part in renewable energy.