Comprehensive definitions of technical and regulatory terms used throughout community solar frameworks
Community solar programmes involve specialized terminology drawn from electrical engineering, utility regulation, and renewable energy policy. Understanding these terms clarifies how shared solar models operate and how different programme structures compare.
This glossary provides detailed definitions of key concepts, organized by category for easier navigation. Each term includes context about how it applies within Canadian community solar frameworks.
A solar energy installation shared by multiple subscribers who receive credits or benefits from the system's electricity production. Unlike individual rooftop installations, community solar allows participants without suitable property or capital to access renewable energy. The shared model distributes costs and benefits across multiple parties, making solar participation accessible to renters, condo owners, and others who cannot install individual systems.
The broader category encompassing community solar and similar models where multiple parties benefit from a single renewable energy installation. This term applies to various technologies beyond solar, including community wind projects and shared geothermal systems. The defining characteristic is multiple beneficiaries sharing output from centralized generation capacity.
An individual or entity participating in a community solar programme by purchasing or leasing a portion of the installation's capacity. Subscribers receive credits or billing adjustments based on their proportional share of system output. The subscriber relationship is contractual rather than ownership-based—participants hold subscription rights, not necessarily direct ownership of physical equipment.
The structural framework defining how participants engage with community solar programmes. Models vary from capacity purchases (buying a fixed share of installation size) to ongoing service agreements (paying monthly fees for credit allocation). The subscription model determines financial obligations, credit mechanisms, term lengths, and exit provisions.
A billing mechanism that credits solar system owners for electricity they add to the grid. When a solar installation produces more energy than the property consumes, the excess flows to the grid and the meter runs backward, creating a credit. Net metering allows customers to offset consumption during periods when their system produces less than they use. This mechanism forms the foundation for many individual and community solar programmes.
An extension of traditional net metering that allows credits from a single solar installation to be allocated across multiple meters or accounts. This mechanism enables community solar by separating the generation location from consumption points. Virtual net metering tracks production at the solar array, then distributes credits to subscriber accounts based on predetermined allocation percentages. The "virtual" aspect refers to credit allocation happening through accounting rather than physical connection.
Generation that occurs on the customer side of the utility meter. Behind-the-meter systems directly serve on-site loads before any interaction with the grid. In community solar contexts, this term describes arrangements where multiple customers share generation capacity located behind a single meter point. The electricity serves subscribed accounts through credit allocation rather than physical delivery.
The monetary value applied to a subscriber's electricity bill based on their share of community solar production. Credits typically appear as line items offsetting consumption charges. The credit calculation method varies—some programmes use retail electricity rates, while others apply wholesale rates or fixed values. Bill credits reduce what subscribers owe for electricity, with excess credits often rolling forward to subsequent billing periods.
The process of distributing production credits among community solar subscribers. Allocation typically follows subscription percentages—a subscriber with 5% of system capacity receives 5% of monthly production credits. The allocation mechanism must account for actual system performance, which varies with weather and seasonal patterns. Proper credit allocation requires accurate metering, clear subscription records, and transparent calculation methods.
A fixed unit of solar generation capacity available for subscription. Programmes using block structures allow participants to purchase one or more blocks, with each block representing a specific amount of generation potential—often expressed in kilowatt-hours per year. Block-based models simplify subscription sizing and pricing, making it easier for participants to match subscriptions to consumption patterns.
A subscriber's percentage ownership or subscription allocation within a community solar installation. If a 100 kW system has 20 equal subscribers, each holds a 5% proportional share. This percentage determines credit allocation—subscribers receive credits equal to their share multiplied by total system production. Proportional shares can be adjusted through subscription modifications, subject to programme rules.
A large subscriber—often a commercial or institutional customer—that commits to a substantial portion of community solar capacity. Anchor tenants provide revenue stability that helps finance project development. Their participation can make projects economically viable by reducing the number of smaller subscribers needed to fill capacity. Some programmes require or encourage anchor tenant participation as part of project structure.
The duration of a participant's commitment to a community solar programme. Terms range from annual agreements to contracts spanning 20 years or more. Longer terms often feature more favorable pricing but reduce flexibility. Subscription terms define when participants can modify or exit their commitments, what happens if they move, and how credits are handled at term expiration.
The contract between a solar installation owner and the utility governing how the system connects to the grid. Interconnection agreements address technical specifications, safety requirements, metering arrangements, and operational protocols. For community solar projects, these agreements must accommodate the multi-subscriber structure and credit allocation mechanisms. Securing interconnection approval is a critical step in project development.
The utility responsible for delivering electricity to end customers through local distribution networks. In provinces with vertically integrated utilities, the distribution company may also handle generation and transmission. In deregulated markets like Alberta, distribution is separated from retail functions. Distribution companies oversee interconnection processes, maintain metering infrastructure, and often administer or facilitate community solar programmes.
In deregulated electricity markets, the company that sells electricity to consumers and manages billing relationships. Retail providers can develop community solar offerings independently of distribution utilities. Alberta's competitive retail market allows providers to structure community solar subscriptions differently, creating variety in programme designs and pricing approaches.
The geographic area where a utility provides electricity service. Service territory boundaries affect community solar subscription eligibility—many programmes restrict participation to customers within the territory where the solar installation is located. Understanding service territory limits matters for subscription portability and transfer provisions when subscribers move addresses.
Electricity production occurring at or near the point of consumption, rather than at large centralized power plants. Community solar represents one form of distributed generation. These systems connect to the distribution network rather than transmission infrastructure, creating different technical and regulatory considerations than utility-scale generation. Distributed generation policies shape how community solar programmes operate within provincial frameworks.
A tradable instrument representing the environmental attributes of renewable energy generation. One REC typically equals one megawatt-hour of renewable electricity production. In community solar programmes, REC ownership can be allocated to subscribers or retained by project owners, depending on programme structure. REC allocation affects the renewable energy claims subscribers can make about their participation.
The ongoing payment subscribers make to participate in community solar programmes. Fee structures vary—some charge monthly amounts, while others require upfront capacity purchases. Subscription fees cover project costs including installation, maintenance, administration, and financing. The fee structure affects programme economics and accessibility for different participant groups.
An upfront payment to acquire a share of community solar installation capacity. Capacity purchase models transfer more financial risk and reward to subscribers compared to ongoing subscription fees. Participants who purchase capacity own their proportional share, receiving all associated credits over the system's lifetime. This model requires more initial capital but may offer better long-term value.
The value assigned to each kilowatt-hour of subscriber allocation. Credit rates determine the monetary benefit subscribers receive from their community solar participation. Some programmes use retail electricity rates, meaning credits offset consumption at the same rate customers pay. Others apply wholesale rates or fixed values that differ from retail prices. The credit rate directly impacts programme economics and subscriber value.
Credits that fluctuate based on actual solar array output each billing period. Production-based systems tie subscriber benefits directly to system performance—sunny months yield higher credits, while cloudy periods produce less. This approach contrasts with fixed-credit models where subscribers receive predetermined amounts regardless of actual generation. Production-based credits introduce variability but reflect real system performance.
These terms interconnect throughout community solar programme documentation. A typical programme description might reference how "subscribers receive bill credits through virtual net metering, with credit allocation based on their proportional share of the installation's capacity."
Provincial frameworks use these terms with subtle variations. Ontario's virtual net metering pilots, Alberta's retail provider partnerships, and Nova Scotia's block-based programme all employ similar vocabulary but apply concepts differently within their distinct regulatory environments.
When reviewing community solar programme materials, understanding this terminology helps decode subscription agreements, credit calculation methods, and regulatory requirements. The language may seem technical initially, but these concepts form the foundation for how shared renewable energy operates in practice.
Contact us for clarification on programme structures, terminology, or provincial framework details.
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