Guides to Community Solar
Here are some guides to introduce you to community solar projects. These resources explain what community solar projects are; their benefits; steps and options in planning them; implementation steps; key considerations for consumers; and policy/regulatory issues affecting community solar
A Guide to Community Shared Solar: Utility, Private, and Nonprofit Project DevelopmentU.S. Department of Energy This community solar guide created by the U.S. Department of Energy outlines three approaches to implementing an effective community solar project.
The guide discusses the pros and cons of each model and provides recommendations.
There are many legal, financial, and project design considerations to address. This guide walks through five phases:
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Solar Energy Industry Association and Coalition for Community Solar Access – 2016This residential community guide to solar energy was created by the Solar Energy Industries Association and Coalition for Community Solar Access. It informs consumers on what community solar energy is, expert tips on how to be an informed consumer, and questions consumers should ask before entering into a subscription agreement for energy produced by the project. Among the key terms to look for in a subscription agreement are:
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Catalyzing Community Solar: a Handbook for Municipalities“This Handbook is intended to help municipalities clearly define and articulate the project’s objectives and understand the financial, legal, and policy issues they would need to address to initiate community solar investments in their communities and convey the resulting benefits to their constituents. “The Handbook identifies three obstacles to success — access to capital, expertise, and risk-allocation — and includes suggestions on how to overcome these obstacles, including the potential use of public funds to reduce the project’s cost and public-private partnerships. This study also includes ideas gleaned from other community solar projects that appear particularly interesting or innovative. In addition, it offers five possible deployment models municipalities could use to support, finance, or build a community solar project in their jurisdictions.” |
Among the useful information in this report are:
- In 2017, community solar programs installed about 387 MW of capacity. There was a 112% year-over-year growth in capacity.
- 33% of cumulative community solar capacity is administered by a utility, and 67% is administered by a third-party provider.
- 44% of community solar programs had low- to moderate-income customers
- "[P]rograms promising immediate bill savings almost universally garner a full subscription. Programs that provide either a hedge against potential rate hikes or payback the upfront payment after a set period experienced lower subscription rates."
- The Community Solar Decision Tree describes considerations and options in: (1) Who runs the program? (2) What is the subscriber's economic proposition? (3) What are the participation restrictions? (4) What are the other terms and conditions? The report provides links to programs illustrating various options.
- "Ultimately, there are many ways a community solar program can be successfully designed. The key is giving proper consideration to what target subscribers are looking for in a program and what the administrator is aiming to accomplish. For example, a program designed to satisfy the demand of the most environmentally concerned customers will and should look very different compared to a program aiming to reduce the electricity bills of low- to moderate-income customers."
Survey of thousands of residential and business customers. Marketing recommendations:
- Offer a comprehensive portfolio of options
- Emphasize reduced energy costs
- Emphasize good corporate citizenship
- Offer attractive financing
- Use messaging that resonates with the identified targets
Presentation to inform community groups on aspects of developing a community solar project
Addresses questions with information including:
Community Solar ToolkitMinnesota Clean Energy Resource Team
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Interstate Renewable Energy Council – 2017 This guide from the Interstate Renewable Energy Council outlines two potential pathways to enable greater solar access for renters, multifamily residents, and low-moderate income communities in Seattle. The first pathway is on-site shared solar that allows energy from a single solar system to be shared virtually among multiple tenant accounts. The second pathway is off-site/remote shared solar which allows multiple dispersed customers to share the economic benefits of a single renewable energy system. The guide further describes each pathway by mentioning specific mechanisms, challenges, and opportunities. It also discusses what is needed, who is involved, and how these programs are enacted. |
This guide includes a comprehensive plan guide to update land use plans, model zoning ordinances, and a local government permitting checklist.
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"[A]ll low-income solar programs should adopt the following basic principles:
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Describes three approaches to assisting organizations and potential subscribers with the upfront costs of participating in solar projects:
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Feldman, D. et al – 2015
This document looks at the shared solar energy market as a whole. It also estimates the market potential for community shared solar energy systems in the United States. Its main discussion focuses on the need for policies and regulations to be supportive of these shared solar energy initiatives.
"Emerging business models for solar deployment have the potential to dramatically develop the solar market, expanding the potential customer base to 100% of homes and businesses. Options such as shared solar can enable rapid, widespread deployment by increasing access to renewables on readily available land and rooftop sites, lowering costs via economies of scale, and fostering innovation.... By aggregating customer demand, shared solar programs can reduce financial and technical barriers to entry and lower costs via economies of scale." (p. 3-4)
