Catalyzing Community Solar
Photo by American Public Power Association on Unsplash
Background
Community solar, also known as shared solar, represents a promising frontier in the expansion and acceleration of solar deployment nationwide. Community solar programs enable multiple customers to participate in and share the economic benefits of a solar energy system, allowing more people to access the benefits of solar energy. These projects can either be remotely located (e.g., on a brownfield) or located on a facility that is shared by multiple participants (e.g., on the rooftop of a multi-tenant building). This toolkit provides guidance and resources to inform the development and implementation of community solar projects.
Ownership structures vary across states and programs; some projects are utility-owned or third-party owned, and others are community-owned. While the number of community solar programs across the country has grown, there remains enormous potential to expand, improve, and replicate these programs nationwide.
The Solar Market Pathways projects developed innovative solutions to help overcome barriers to community solar in new markets, enabling more people, businesses, and communities to participate in and benefit from community solar programs. Through their efforts, the teams:
- Developed and implemented programs in markets that have not previously had community solar.
- Identified best practices and consumer preferences to improve existing program models.
- Standardized community solar models to reduce costs and simplify program development and implementation.
- Provided technical assistance to expand and improve utility-administered community solar programs.
- Enhanced the value of community solar programs by integrating complementary energy resources, including demand response and energy storage.
Toolkit
This toolkit provides a suite of resources to guide the development of, and investment in, community solar and equip diverse stakeholders with tools to navigate relevant policy issues, program design and implementation, and consumer and community engagement. The resources in this toolkit are built for the audiences they serve—utilities, policy makers, investors and financiers; the renewable energy industry; and residential and non-residential end users. The toolkit may also be helpful for community groups and local governments interested in advancing community solar in their respective localities.
Fundamentals of Community Solar
Community solar programs give consumers an alternative to placing solar on their own property and enables multiple participants to benefit from electricity generated by a shared solar energy system, which is typically located off site. These programs offer great potential for long-term growth—between 2015 and 2020, cumulative community solar installations could constitute 5.5-11 GW of solar PV for residential and non-residential customers.
As a starting point for those who want to develop community solar projects, the National Renewable Energy Laboratory produced A Guide to Community Solar, providing a detailed overview of the different community solar ownership models for utility, private, and nonprofit projects.
The tools in the Solar Energy Resource Center provide an overview of key concepts, offering a helpful resource for those seeking to learn more about community solar issues, program designs, and models.
Resources
Community Solar Basics Community Solar Basics
A checklist to help guide decision-makers and program designers as they develop community solar programs, and useful relevant additional resources for reference.
Guiding Principles for Shared Renewable Energy Programs Guiding Principles for Shared Renewable Energy Programs
These five guiding principles provide an overview of the key elements for successful shared renewable energy programs designed to expand consumer access to clean energy.
A Guide to Community Solar: Utility, Private, and Non-profit ... A Guide to Community Solar: Utility, Private, and Non-profit Project Development
This guide provides an overview of the different community solar ownership models.
Community Solar: What is it? Community Solar: What is it?
An overview of community solar program elements and related issues.
Solar Energy Resource Center Solar Energy Resource Center
DOE curated online database of resources for a broad spectrum of solar topics.
Community Solar Opportunity Assessment for Cook County Community Solar Opportunity Assessment for Cook County
This analysis quantifies the shared solar market potential by site, characteristics or type, subscriber type, and ownership model in the county.
Policy
Utilities, customers, decision-makers, and other stakeholders should understand, and take into account, important policy considerations that may affect community solar program design and implementation. There are a number of policy options—including virtual net metering, group net metering, meter aggregation, and group billing—that enable community solar, and various resources available for exploring these options.
The Interstate Renewable Energy Council’s State Shared Renewable Energy Program Catalog assists policymakers, regulators, and other stakeholders in understanding the details of existing and proposed state shared-renewables statutes and program rules. The Center for Sustainable Energy offers a comprehensive summary of California’s virtual net metering tariff for general market multifamily housing, plus an overview of other state virtual net metering and community solar policies across the country.
The National Renewable Energy Laboratory also offers a country-wide overview of community solar in its report, examining the current U.S. shared solar landscape. This report provides an estimate of market potential for U.S. shared solar deployment and discusses the effects of federal securities regulations.
Resources
Community Shared Solar: Policy and Regulatory Considerations Community Shared Solar: Policy and Regulatory Considerations
This paper explores the ways in which the shared solar business model interacts with existing policy and regulations and provides options for creating a supportive policy environment.
Community-Scale Solar: Why developers and buyers focus on this ... Community-Scale Solar: Why developers and buyers focus on this high-potential market segment
This report highlights the potential for community-scale solar (0.5–5MW projects) and the key attributes and opportunities associated with this untapped market.
The Ecology of Community Solar Gardening: A ‘Companion’ Planting ... The Ecology of Community Solar Gardening: A ‘Companion’ Planting Guide
This report provides an overview of community solar activities around the country, highlighting state activities as well as utility-led initiatives.
Virtual Net Metering Policy Background and Summary Report Virtual Net Metering Policy Background and Summary Report
This report summarizes California’s Virtual Net Metering Tariff for general market multi-tenant units and provides an overview of VNM and community solar policies across the country.
California NEM-V Market Assessment California NEM-V Market Assessment
This report assesses the current NEM-V Market within CA and highlighting potential market developments that could support greater NEM-V adoption throughout the state.
Shared Solar: Current Landscape, Market Potential, and the Impact ... Shared Solar: Current Landscape, Market Potential, and the Impact of Federal Securities Regulation
Overview of the shared solar landscape and estimate of market potential for the U.S., and the impact a shared solar program’s structure has on requiring federal securities oversight.
National Shared Renewable Energy Scorecard National Shared Renewable Energy Scorecard
The scorecard evaluates shared renewables programs across the US, offering insights into the strengths and weaknesses of programs relative to a set of core design criteria.
Access for All: Pathways to Expand Solar Options to Renters and ... Access for All: Pathways to Expand Solar Options to Renters and Multifamily Households in Seattle
This guide compares pathways, policies, and other considerations for those seeking to expand solar access to multifamily housing.
Community Solar Policy Decision Matrix Community Solar Policy Decision Matrix
The national trade association for community solar developed a helpful decision matrix for designing community solar programs.
Program Design and Implementation
There are many ways to design and implement a community solar program involving different business models, program design considerations, and project implementation tools.
Under the U.S. Department of Energy’s National Community Solar Partnership, utility cooperatives and developers installed solar in local communities. These organizations worked to streamline procurement, coordinate installation, drive down solar costs, and make solar more accessible for residents of all income levels. It is important for these organizations—developers, utilities, and nonprofits alike—to consider barriers to participation—such as income level—for potential energy program customers. Enabling policy guidelines and program design recommendations help ensure community solar programs are designed to be effective for all end users, especially low- to moderate-income consumers.
To foster utility-led community solar models closely aligned with the needs and interests of consumers and stakeholders, the Smart Electric Power Alliance published a report on 12 key community solar design decisions, surveying existing community solar programs and providing case studies for the most prevalent models. The types of utility-owned community solar projects outlined in this report are becoming increasingly prevalent across the U.S., especially among publicly owned utilities.
Cook County, Illinois pioneered new approaches, tools, and resources as they worked to jumpstart community solar in the county and across Illinois. Their experience demonstrates the importance of robust stakeholder engagement, analysis, and assessment tools as key ingredients to opening new community solar markets.
Community solar projects can also be designed to help utilities avoid costly engineering solutions and provide regional-level ancillary services. New business models can increase the scale, reach, and value of utility-based community solar. Utility solar program managers can include appropriate demand response measures to enhance the value of distributed solar and utility-driven community solar. Community Solar Value Project’s pricing model fact sheet provides a side-by-side comparison of community solar pricing strategies at seven utilities nationwide.
Resources
Community Solar Basics Community Solar Basics
A checklist to help guide decision-makers and program designers as they develop community solar programs, and useful relevant additional resources for reference.
Community Solar Best Practices Analysis Community Solar Best Practices Analysis
The study identifies model programs and national best practices in Community Solar and provides a baseline framework for policy positions to accelerate community solar in Cook County.
Multifamily Solar Market Development Plan Multifamily Solar Market Development Plan
This plan is intended to help policymakers, regulators, local governments, multifamily stakeholders and others in CA and beyond to expand multifamily solar in their jurisdictions.
Project Makes Solar Ownership Possible for More Customers in ... Project Makes Solar Ownership Possible for More Customers in Lansing and East Lansing
An overview of Michigan Community Solar’s work under the U.S. Department of Energy’s National Community Solar Partnership to develop a large solar installation in the community.
Bringing Community Solar to Virginia Bringing Community Solar to Virginia
An overview of BARC Electric Cooperative’s work under the U.S. Department of Energy’s National Community Solar Partnership to bring the first community solar project to Virginia
Community Solar Value Project Resource Library Community Solar Value Project Resource Library
This online resource library provides presentations and publications relating to ownership and financing models, solar+storage and demand response, and marketing, among other topics.
Tools You Can Use for Community ... Tools You Can Use for Community Solar Webinar
An overview of the Community Solar Toolkit and case studies by SMP awardees featuring innovative tools and approaches to advance community solar programs across diverse markets.
Community Shared Solar: Implementation Guidelines for Massachusetts ... Community Shared Solar: Implementation Guidelines for Massachusetts Communities
This comprehensive guide is intended as a resource for project organizers seeking to implement community solar projects in their community.
Community Solar Hub Community Solar Hub
This online resource provides various implementation tools, resources, software, and other services to help support and streamline community solar project development.
Local Government Community Solar Toolkit Local Government Community Solar Toolkit
This online toolkit and guide is designed to help local governments interested in community solar gardens.
Model Rules for Shared Renewable Energy Programs Model Rules for Shared Renewable Energy Programs
A consolidated overview and discussion of community solar program design components and an adaptable template for policies and rulemaking purposes.
Re-Powering America’s Land Re-Powering America’s Land
This website provides useful resources for communities, developers, industry, state and local governments or anyone interested in reusing these sites for renewable energy development.
Solar Success for Nonprofit Utilities: Grand Valley Power’s ... Solar Success for Nonprofit Utilities: Grand Valley Power’s Low-Income Community Solar Program
This case study spotlights the Grand Valley Rural Cooperative Community Solar project in Colorado completed in partnership with GRID Alternatives.
Texas Community Solar Guidelines for Cooperatives and Municipally ... Texas Community Solar Guidelines for Cooperatives and Municipally Owned Utilities
A summary of community solar, its recent growth in Texas, technical resources to reference, and an overview of the major community solar decision points.
Utility Community Solar Handbook Utility Community Solar Handbook
An overview of the utility’s perspective on utility managed community solar program development and the major design elements the utility needs to address during program development.
Community Solar Scenario Tool Community Solar Scenario Tool
This tool allows users to see how various inputs, such as system size, location, and project costs, impact the economics of a project from both the customer and utility perspectives.
Pricing Model of Interest for Utility-driven Community Solar ... Pricing Model of Interest for Utility-driven Community Solar Programs
This table provides a side-by-side comparison of community solar pricing strategies at seven utilities nationwide.
State Shared Renewable Energy Program Catalog State Shared Renewable Energy Program Catalog
The catalog is intended to assist policymakers, regulators, and stakeholders in understanding the details of existing and proposed state shared renewables statutes and program rules.
Shared Renewable Energy for Low-to-Moderate-Income Consumers: ... Shared Renewable Energy for Low-to-Moderate-Income Consumers: Policy Guidelines and Model
This report provides an overview of key barriers to LMI customer participation in shared renewable energy programs and key policy guidelines and program design recommendations.
Community Solar: Program Design Models Community Solar: Program Design Models
This report provides an overview of community solar program models through 12 key design decisions and discusses what options are most prevalent. Case studies of each model type are provided.
Incorporating Demand Response into Community Solar Programs Incorporating Demand Response into Community Solar Programs
This report assists utility solar program managers in including appropriate demand response measures to enhance the value of distributed solar.
Crowdfunding Models Brings Solar to Community Organizations in ... Crowdfunding Models Brings Solar to Community Organizations in Appalachia
An overview of Solar Holler’s work to develop a creative crowdfunding model to leverage revenue from energy efficiency to put solar on nonprofit buildings.
Leveraging Funding Sources to Bring Solar to Low-Income Households ... Leveraging Funding Sources to Bring Solar to Low-Income Households in Minnesota
An overview of Rural Renewable Energy Alliance’s work to provide weatherization, solar thermal and solar electric systems for low-income households.
Bulk Purchasing Power for Cape Cod Communities Bulk Purchasing Power for Cape Cod Communities
An overview of Cape & Vineyard Electric Cooperative’s work to streamline procurement, coordinate installation and drive down costs of solar in the community.
Shared Solar for the Community Shared Solar for the Community
An overview of Kit Carson Electric Cooperative’s work to engage their community to bring a solar array to residents of multiple income levels.
Cook County Catalyzes Community Solar in Illinois (and Beyon... Cook County Catalyzes Community Solar in Illinois (and Beyond)
This case study spotlights Cook County’s efforts to jumpstart community solar in a nascent market through effective stakeholder engagement.
Solutions Outside the Box: Process Solutions Outside the Box: Process
This website provides resources to help utilities evaluate and customize internal processes as they work to develop community solar programs and projects. This toolkit serves as a tool for unifying diverse team members and as a checklist of key program-design considerations.
Shared Solar Model Rules Shared Solar Model Rules
Guiding principles for model rules development, as well as the core components for consideration, and a discussion of the states with restructured energy markets.
IREC’s Shared Renewable Energy ... IREC’s Shared Renewable Energy for Low- to Moderate-Income Customers: Policy Guidelines and Model Provisions
An overview of key barriers to LMI customer participation in shared renewable energy programs and key policy guidelines and program design recommendations.
Opening Doors to Community Solar: ... Opening Doors to Community Solar: Insights from Cook County, IL and Other Local Governments
Local government representatives share key considerations for site owners, municipalities, and others interested in community solar.
Tools You Can Use for Community ... Tools You Can Use for Community Solar
Case studies by Solar Market Pathways awardees featuring innovative tools and approaches to advance community solar projects and programs across diverse markets.
Finance
Understanding project economics, as well as available financing tools, is critical to successful community solar program design and implementation. The Community Solar Business Case Tool provides a flexible financial model that projects the costs and benefits to the system developer and subscriber of a single community solar project. Stakeholders can use this tool to determine the value proposition of investing in community solar.
The Cook County Department of Environmental Control, with support from the National Community Solar Partnership, polled various regional and national stakeholders to develop the Shared Solar Value Proposition, which contains an analysis of the value proposition for subscribers and developers and an overall summary report of the value proposition for community solar. The Department of Energy provides an overview of three ways to finance community solar projects.
Utility billing and bill-crediting mechanisms are key to allocating benefits to participants, but they have been a barrier for some programs and states. Cook County’s Utility Billing Impacts of Community Solar presentation analyzes potential bill-crediting processes for subscriber management of community solar projects.
Utility-led community solar programs have options for structuring and financing that vary based on the structure of utility (investor-owned, municipal utility, or cooperative), state policies, and upcoming changes to the federal solar tax incentives.
Resources
Shared Solar Value Proposition – Part I Shared Solar Value Proposition – Part I
This document contains the analysis of the value proposition for subscribers and developers and an overall summary report of the value proposition for community solar.
Shared Solar Value Proposition – Part II Shared Solar Value Proposition – Part II
Building from Part I, this analysis includes utility impacts and provisions of the 2016 legislation. Results show a positive business case for system owners and subscribers.
Federal Resources for Community Solar Federal Resources for Community Solar
A DOE curated resource list of federal programs and incentives applicable to community solar development.
Low-Income Solar Policy Guide: Financing Tools Low-Income Solar Policy Guide: Financing Tools
This online resource library provides examples of different models and financing mechanisms to help expand solar access to LMI customers.
Three Ways to Finance Community Solar Projects Three Ways to Finance Community Solar Projects
From revolving funds to tax equity loans, this blog provides three examples of how to bring solar into communities.
Private Letter Ruling on the Eligibility of an Individual Panel ... Private Letter Ruling on the Eligibility of an Individual Panel Owner in an Offsite, Net-Metered Community-Shared Solar Project to Claim the Section 25D Tax Credit
From the Internal Revenue Service (IRS) determining that an owner of PV panels in an offsite community shared solar garden is eligible for the residential tax credit.
Stoel Rives Memorandum to NREL RE: Securities Law Issues Relating ... Stoel Rives Memorandum to NREL RE: Securities Law Issues Relating to Community Solar Projects
A legal memo issued to NREL discussing the federal securities legal issues surrounding community solar development.
Community Solar Business Case Tool Community Solar Business Case Tool
This downloadable spreadsheet is a flexible financial model that projects the costs and benefits to the system developer and subscriber of a single community solar project.
Utility Billing Impacts of Community Solar Utility Billing Impacts of Community Solar
This report analyzes the potential bill-crediting processes for subscriber management of a community solar project.
Connecticut Green Bank Programs ... Connecticut Green Bank Programs for Low- to Moderate-Income Customers
An overview of the LMI-specific financing mechanisms offered by the Connecticut Green Bank to expand solar deployment.
Consumer and Community Engagement
A successful community solar program relies on effective outreach and education, which can include project-specific marketing.
The Smart Electric Power Alliance provides insights into consumer preferences for solar in a summary report of two new surveys of U.S. energy customers. It includes methods for identifying and marketing to the right audiences for community solar. To engage contractors, property owners, and developers, the Multifamily Online Solar Marketplace offers a process to simplify complex multifamily solar projects by providing resources and assistance for making smart solar decisions, and to help property owners easily gather and compare solar quotes. Multifamily and contractor toolkits featuring roadmaps, checklists, and worksheets guide solar deployment for apartment and condominium communities. These toolkits also include interconnection resources and a group of interactive multifamily density maps to aid in targeting outreach regions and acquiring customers.
Resources
Shared Solar NYC Portal Shared Solar NYC Portal
This platform connects community shared solar developers to interested owners of potential host sites, including rooftops and open land.
Community Solar Garden Financial Decision-Making Tool Community Solar Garden Financial Decision-Making Tool
This free online calculator and information guide helps potential subscribers of Minnesota’s Community Solar Garden’s program better understand the financial impact of participation.
Consumer Protection Trio Consumer Protection Trio
The Consumer Protection Trio spotlights safeguards and pointers for buyers, government agencies, the industry, retailers, and others.
Community Solar Consumer Preferences: ... Community Solar Consumer Preferences: Qualitative Research Findings
Findings from SEPA and the Shelton Group’s first phase of research involving focus groups to gauge general perceptions of community solar models.
Guide to Land Leases Guide to Land Leases
A guide for landowners to help them understand the opportunities and implications for leasing their land for solar development.
Key Considerations in Choosing a Community-Owned Solar Garde... Key Considerations in Choosing a Community-Owned Solar Garden
This provides an overview of issues for consumers to consider when evaluating community solar options.
How to Start a Community Solar Project How to Start a Community Solar Project
This tool allows users to see how various inputs, such as system size, location, and project costs, impact the economics of a project from both the customer and utility perspectives.
Residential Consumer Guide to Community Solar Residential Consumer Guide to Community Solar
This consumer guide provides a brief overview of key terms in agreements, questions to ask solar professionals, and other issues to consider when choosing community solar programs.
Virtual Net Metering Toolkits Virtual Net Metering Toolkits
Created for California, the multifamily and contractor toolkits feature roadmaps, checklists, maps and worksheets to support use of the virtual net metering tariff.
Multifamily Solar Online Marketplace Multifamily Solar Online Marketplace
This site helps simplify the process for owners of multifamily properties offering resources and the ability to gather and compare solar quotes.
What the Community Solar Customer Wants What the Community Solar Customer Wants
This report highlights findings from two new surveys of American energy customers regarding solar energy, with a focus on community solar.
Selling Out 1.55 MW of Community Solar in 7 Weeks: Inside the ... Selling Out 1.55 MW of Community Solar in 7 Weeks: Inside the City of Fremont, Nebraska‘s Community Solar Program
This case study covers the importance of knowing customer concerns and needs when building community solar programs. It includes a discussion of the value of community solar to commercial and industrial customers.
Perspectives on Solar: Consumer ... Perspectives on Solar: Consumer and Community Advocates
Highlights addressing consumer equity issues in solar policies, campaigns, and new market pathways, plus managing challenges between solar interests and consumer and community interests.