Berlyn Hubler, community solar manager at a nonprofit organization Energy Outreach Coloradohas seen firsthand the impact of community solar on low- and moderate-income (LMI) communities.
“We often hear that subscribers are happy to pay their bill because it is affordable,” she said. “These households no longer have to make difficult decisions regarding their energy consumption. They can turn on their air conditioning and not have to worry about paying for food or medicine next month.”
Many states have only recently adopted policies and practices that connect solar and low-income communities. It will take some time before benefits like those in Colorado are seen in large numbers. However, community solar’s ability to impact Americans in need is undeniable.
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Solar energy communities and low-income communities
Three quarters of U.S. households cannot install rooftop solar, whether due to unsuitable roofs or lack of homeownership. Of 50 million people Because they are considered low income and have a high energy burden, community solar becomes an accessible way for these families to save money on their electric bills while supporting solar energy.
Community solar energy developer Standard solar energy‘s Megan Byrn, vice president of business development, and Trevor Laughlin, senior policy and regulatory analyst, said community solar levels the playing field for those who benefit from clean energy. They said community solar allows LMI households to save money while boosting local economies, strengthening the electric grid and reducing carbon emissions “in places where environmental classism has been rampant for generations.”
Community solar democratizes access to solar energy and promotes equity, and industry stakeholders are focusing on this necessary community connection.
Developers promote community solar equity
Some solar developers are committed to developing projects that benefit communities in need. Standard Solar often ensures that its projects will benefit LMI populations. Then, during project commissioning, the company eliminates barriers for LMI subscribers, such as registration or cancellation fees.
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“Initially, we are confirming market and regulatory rebate guidelines to ensure we provide the guaranteed savings available to LMI communities,” Byrn and Laughlin said jointly. “We then consult with local planning and zoning authorities as we move through the engineering and construction phases to ensure we comply with regulations.”
Developer Turn energy, one of the largest low-income providers in the community solar sector, partners with community organizations to develop trust with LMI families. Pivot partnered with Energy Outreach Colorado to offer subscriptions to Pivot’s solar gardens, combined with utility bill assistance.
“As developers, it is our responsibility to make solar subscriptions as meaningful as possible for the community,” said Annie Lappée, Pivot VP of strategy and impact. “We should also look for innovative partnerships with utilities and companies looking to purchase renewable energy credits to help us provide the best construction discount and simplify the subscription process.”
Kate Larkin, director of community solar for developer OneEnergy renewable energy sources, said community-based groups have been a big help to OneEnergy’s community solar projects in Minnesota. The company has entered into a unique partnership with a local cooperative to ensure solar subscribers can enjoy direct ownership and profit sharing, as well as typical subscription savings.
“It is critical to continually engage local community groups to support and share the cost-saving and environmental benefits of solar energy for the community. Ensuring we can save real people real money is the only way our projects can be successful,” she said.
The crucial role of policy
Of the 24 states with communal solar programs, just 14 have a participation facility for low incomes. Some states have LMI capacity limits, while others are trying to align low-income utility programs so that community solar is positioned as another form of assistance, such as Pivot’s initiative with Energy Outreach Colorado.
Some of the more successful programs, said Stephanie Burgos-Veras, senior manager of equity programs for the Coalition for Community Access to Solar Energy (CCSA), have qualification processes in place for self-attestation and consolidated billing. Minnesota and Maryland recently added consolidated billing to their programs. NREL has identified stimuli such as financial subsidies and voluntary, utility-led programs that are equally important for equitable community solar development.
Community solar programs cannot happen without industry advocates such as Standard Solar, Pivot Energy and OneEnergy Renewables educating and promoting this growing solar market. Interest group Vote for solar energy has been particularly vocal in its support for community solar, and Vote Solar policy management trio Farudh Emiel, Marta Tomic and Nathan Phelps said the group “leverages strategic partnerships and engages in rulemaking, implementation and program review processes to ensuring that community solar initiatives are implemented effectively and equitably.” The organization also contributed to the creation of the “Low Income Solar Policy Guide”, a resource for policy makers, community leaders and others.
This focus on equality has also entered the federal discussion. The IRA has two programs aimed at increasing low-income and community solar participation. One is the bonus program for low incomes, allowing community solar developers to access a higher investment tax credit if they develop projects that serve low-income customers at a meaningful level. The other is Solar energy for everyonea $7 billion grant program to encourage equitable access to rooftop and community solar.
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Steps still need to be taken
Despite these positive developments, Richard Keizer, founder and CEO of community solar subscription manager Community energy, said that for community solar benefits to reach low-income communities at scale, they need to be structured differently. The most ideal way, he said, is for utilities to automatically enroll eligible low-income households, as this would both simplify the enrollment process and ensure that the higher savings quotas go to those who need them most.
Keizer also believes that larger housing authorities should be eligible for community solar programs and be given the opportunity to pass savings benefits directly to customers.
“This is much more effective than requiring individual enrollment of low-income households, which will ultimately limit programs,” he said, noting that New York policy recognizes this. “Unfortunately, the vast majority of those advocating for the low-income segment have no idea how to implement the programs for large-scale impact.”
The future of equal access to community solar energy
Pivot’s Lappée pointed to the fact that only 12% of solar subscribers in America come from LMI households.
“Community solar is ready to serve low-income customers, but we have only just begun to discover its potential,” she said.
There is a lot the solar industry can do to help a fair community realize its full potential, even if it won’t be easy.
“Serving low-income customers is not the path of least resistance,” says Burgos-Veras of CCSA. “It will require the commitment of developers, lawmakers, utility executives and community organizations to all work together to break down existing barriers.”