CleanChoice Energy, Arcadia, Community Solar, etc. Legit? Scam?

January 18, 2024 8:46 AM

Over the past year we've received 2 advertisements in the mail from different clean energy companies that supposedly work with PSE&G, our current energy provider, to provide clean energy. We're in NJ. Has anyone use these services? How exactly do they work? Do you see savings on your electricity bill? Are there things to watch out for? Tax benefits/implications?

The 2 companies are Arcadia, which promises savings from community solar, and CleanChoice Energy, which claims that they tell PSE&G to switch to CleanChoice Energy which is 100% wind/solar energy.

We are very interested in using renewable energy, but are a few years away from installing solar panels on the roof for various reasons. I'll also do my own research on these companies and read the fine print, but I would love to hear from someone who has experience with these types of companies, especially if you're in NJ (but other states are welcome to weigh in too!).

We currently use less than an average amount of electricity and our bills aren't high, but will add an electric vehicle and electric stove sometime in the next decade.

posted by dabadoo to Home & Garden (7 answers total)

Community solar is not a scam! I had the same reaction, and talked to my friend who works in energy policy, and she is 100% in favor when you can't (yet) get your own solar. We don't save very much money (a few cents a kilowatt, iirc) but it helps fund the transition to renewable energy. The one caveat was that you want to make sure you're either signed up for a project that's already started, or you do your homework to make as certain as possible that it's *going* to start on time. (I'm in MA, so the details likely differ, and we signed up for a project that was already going, so I didn't have to do that research.)
posted by restless_nomad at 8:55 AM on January 18

Arcadia may not be a scam energy-wise, but they are very bad actors in other ways. Their door to door "salespeople" tell outright lies (your energy company sent us here to set you up on solar), have been physically aggressive (literal foot/shoulder/arm in doors that people are trying to close) and take polite "no" answers as an opportunity to act in a threatening manner with plausible deniability (reading your name and address out loud repeatedly, insinuating they'll be back with less friendly backup, saying your house is trash and no one would even notice if something happens to it). They've been at my house twice, if you're wondering how I know, and I have friends and neighbors with similar stories. There's literally no way to contact a human at their company to complain, and my emails received generic bot responses. Their online reviews show this isn't exclusive to Maine.
posted by donnagirl at 9:19 AM on January 18 [4 favorites]

Pennsylvania here. I signed up with CleanChoice a few months back and when I got my first bill, they were charging me 4 cents per kWh more than the rate they had advertised and that I had signed up for. I called them to fix the problem and they claimed I had signed up incorrectly and therefore did not qualify. The rate I was actually charged was higher than I was paying the local utility (PECO) who also had lowered their prices, so I switched back. CleanChoice would not give me a refund for the usage I overpaid them for nor switch me to the correct rate. A few weeks later they called to follow up on my sign up since it appeared it did not go through! Needless to say, I do not recommend them.

BTW, this was exactly the sort of thing I was worried about when I moved to Pennsylvania and started hearing that I could switch electricity providers, and it turns out my suspicions were right, the area is rife with scammers. If you have never heard of a company before there's probably a reason for it.
posted by kindall at 11:26 AM on January 18

I have been using one or another of these for several years now, in Illinois. One thing to watch out for is that they may start you out with a 12-month rate which is quite good, but when that finishes unless you take action they might default you to some crazy high rate. We got burned by that one. When I called to complain, they said I could sign another 12 month contract, but I just ended up switching. (I switched to CleanChoice most recently, so I don't know how they are in this regard!)
posted by wyzewoman at 11:31 AM on January 18 [1 favorite]

I've been using CleanChoice for years and honestly don't check the rate that closely; I didn't join to save money. IDK if all their plans work like this but they auto-sign me up for a new 12 month contract at whatever the rate is when mine expires. I get a letter and an email telling me about it before it takes effect. Last year I think it was higher than my local utility but this year it dropped several cents per kwh, so it doesn't only go up. I mainly use it so I feel less guilty using air conditioning.
posted by misskaz at 12:59 PM on January 18

ESCOs are virtually always some sort of scam, though unfortunately they've managed to get legal cover in many states. At the very least, they're lying to you about what you'll save. Their sales tactics are generally despicable enough that they should not be encouraged.
posted by praemunire at 7:26 PM on January 19

Check out propublica's article on Washington state's environmental permitting shenagans for solar in eastern WA. Same company, different state. While community solar is valid and can be awesome, careful of who you hire and what you agree to.
posted by esoteric things at 1:55 AM on January 21