How do Banks benefit from Community Solar?
Overview: Community solar provides the option for predictable energy savings for banks and credit unions across their portfolios. It does so without capital investment, operational disruption, or impact to customer experience while potentially aligning with CRA goals.
Operating a successful bank branch means meeting the highest standard at all times. Customers depend on spaces that feel safe, well lit, and comfortable, with critical systems operating continuously behind the scenes. Security, ATMs, lighting, and climate control run day and night, creating a steady and unavoidable source of electricity to use across every location.
As electricity rates continue to rise, that constant demand has branch managers across the country looking for practical ways to protect operating margins against inflated energy costs. However, a viable solution must be one that doesn’t impact the security of the location, or the ability of customers to access the financial services they need. That’s where community solar can offer a practical path to greater control over operating expenses, while avoiding any impact on day-to-day operations.
What does Community Solar offer for Banks & Credit Unions?
Community solar is a partnership that exists between a solar farm operator and electricity users in the same utility territory. Each participating electricity user, like an individual bank branch, gets bill credits every month from the solar farm to reduce their electric bill and pays for the credits at a 10-15% discount.
The unique benefits those locations may be able to take advantage of include:
Improved Branch Efficiency ratio: By reducing electricity costs through a community solar partnership, banks can decrease their operating expenses in a dependable fashion and support improved overall cost efficiency with no impact on revenue drivers.
No changes to security or compliance: Since community solar partnerships are with projects located off-site, there are no changes to branch buildings, electrical systems, or internal technology. Banks don’t need to bring in contractors, install equipment, or give third parties access to their facilities. That means existing security controls, access policies, and audit standards remain unchanged, while the bank still benefits from lower energy costs.
Simple & scalable: Whether signing up 1 or 100 facilities, community solar offers a uniform solution that can be implemented across every branch in as little as 60 days, with savings starting shortly after.
No Impact on customer experience: Because there’s no on-site installation, your branch avoids construction-related noise, disruptions, or temporary closures, ensuring that customers can continue to access services without interruption.
As a final benefit: by reducing overhead through community solar, banks can preserve competitive rates and low fees. For member-owned credit unions, those same savings can be redirected toward higher member dividends or expanded community-giving initiatives.
Want to learn more? Visit our What is Community Solar page
How Community Solar impacts Community Reinvestment Act compliance:
The Community Reinvestment Act (CRA) encourages banks to support their local communities, a goal that aligns strongly with the community solar value proposition. However, a bank’s ability to use involvement in a community solar project for CRA purposes depends greatly on the role it plays in the project.
As a project participant: A bank may have limited ability to claim local impact unless its participation represents a significant portion of the project and clearly benefits other subscribers.
As a project financier: the CRA case is stronger with clear line of sight between investment and local benefits, though these opportunities are rarer and more complex.
In all cases, Turquoise Trail recommends that banks should exercise strong discretion and work with internal counsel when making claims regarding CRA compliance and community solar.
How can Turquoise Trail Energy Solutions help?
Often the hardest part about community solar is knowing where to start. At Turquoise Trail Energy Solutions, we help banks & credit unions navigate the community solar process from start to finish by evaluating eligibility, estimating potential savings, and providing clear, personalized guidance.
If community solar is a good fit for your business, we work with pre-vetted, industry-leading community solar partners who are offering the best options in the market. Contact us today to learn more about how you can take control of your electricity expenses.
