How does Solstice make money?

If you're always saving money by being a Solstice customer, you may be wondering how Solstice makes money - fair question!

First, it's important to know that Solstice does not own the solar farms our customers are subscribed to. We work with solar development companies that specialize in the development and maintenance of these solar farms - this includes identifying plots, financing, building, and maintaining and operating the solar farm once it has turned on. However, many of these solar developers do not have the resources or expertise to sign up local residents.

This is where Solstice comes in. We specialize in working with individuals and organizations to educate people on community solar, signing them up for a local solar farm if they are interested, and providing customer support and management when the solar farm is live. In short, solar development companies contract Solstice to acquire households and businesses to subscribe to their local solar farm and to provide the best customer experience possible!

Now you may still be wondering how the developer makes money in order to pay Solstice. Solar developers are responsible for financing and building solar farms, which often cost several million dollars. They earn revenue over time as Solstice customers pay for their monthly solar credits from the energy generated by the solar farm. Instead of selling the energy directly to the utility company at the wholesale rate, they can be profitable over the lifetime of the project (usually 25 years) by offering it directly to households and businesses at a discount on the normal supply and delivery rates.

The fact that developers can earn a higher rate for electricity is due to government incentives at the state and federal levels. Both governing bodies are invested in more clean energy and are willing to provide financial support in order to make that a reality. State governments have increasingly been adopting community solar programs because they’re great for swift increases in renewable energy development and they allow residents to benefit from the lower cost of solar. If you’re the kind of person that doesn’t like subsidies, consider the fact that fossil fuels receive millions in subsidies every year, so we're leveling the playing field!

At Solstice, we use the lessons we learn from interacting with customers to advocate for the best product possible when talking with solar developers. The more people we sign up, the more leverage we have in these negotiations. 

If you have any questions or concerns, please don’t hesitate to reach out to us at [e-mail] or 845-853-0768.