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March 2019

Community Solar= Environmental Justice. March 2019. Liz Robinson, Philadelphia Solar Energy Association (PSEA) Mark Connolly , RER Energy Group. Philadelphia Solar Energy Association. What is Community Solar ?.

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March 2019

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  1. Community Solar= Environmental Justice March 2019 Liz Robinson, Philadelphia Solar Energy Association (PSEA) Mark Connolly, RER Energy Group Philadelphia Solar Energy Association

  2. What is Community Solar ? “Community solar” (“shared solar” ) is a program that allows consumers to lease or own a portion of a shared solar energy system. Fully 70% of Pennsylvanians cannot currently access solar energy because they rent, have shaded or unsuitable roofs, or may not have access to capital.

  3. Community Solar Programs • 17 states and the District of Columbia have legislatively enabled statewide community solar programs. Many other states are conducting pilot programs. Community solar has grown exponentially in the last six years. • By the end of 2017, over 768 MW of community solar was installed in both policy-driven markets and voluntary markets.

  4. How does Community Solar work?

  5. Community Solar: Customer Perspective Community solar enables multiple customers to share the benefits of a single solar energy project. Participating in a community solar project allows you to get credits on your electric utility bill for your portion of the power produced. 

  6. How does Community Solar work? • Ownership: community members, 3rd party solar providers or utilities • Subscribers: Individuals, businesses, schools, or apartment building owners • Participating mechanism: Subscribers sign up for energy from a community solar installation. Subscribers receive a credit on their electric utility bill based on the amount of energy produced by their share of the PV system. • Credit rate: Important that the credit is at the full retail rate to make the economics work and also ensure that community solar customers are treated the same as rooftop solar customers in terms of credit received. Statewide program design elements are developed at the legislative level and refined at the state’s Public Utility Commission.

  7. How does Community Solar Billing Work?

  8. Why Choose Community Solar? • Equal Access:  Gives ALL consumers equal access to solar • Hassle-free clean energy:  Customers can sign up to participate in a community solar project without having to worry about on-site contractors, permits, or maintenance. • Flexibility:  Community solar allows customers to move within the utility territory and still participate in the community solar project, making it an easy, portable energy solution. • Economies of scale: Larger projects provide a lower cost per watt. • Consumer choice: Individuals have more control in their energy choices. • New investments: Spurs new development and impacts local economies. • Job creation: Local workers gain employment opportunities • Environmental goals: Community solar allows more individuals to benefit from clean energy, expediting the transition from fossil fuel to clean energy.

  9. How PA Ranks

  10. Net Metering = A+ in PA ! • System Capacity Limit: • 50 kW for Residential • 3 MW for Non-residential • 5 MW for micro-grid and emergency systems • No Aggregate Capacity Limit • Net Excess Generation: Credited to customer's next bill at full retail rate; generation above usage reconciled annually at "price-to-compare“

  11. Community Solar Platform Virtual Net Metering vs Virtual Meter Aggregation • Virtual Net Metering – very similar to a customer with on-site solar - same benefits of net metering to the customer. Participating customers see their share of the community solar facility’s output net metered on their own electric bill. PA currently does not allowvirtual net metering. • But, PA does allow Virtual Meter Aggregation, which is similar except all participating meters must be in the same customer name, and all meters and the solar PV system must be located within two miles of each other.

  12. Cost of Solar has Fallen Dramatically !

  13. Lower PV Installed Cost for Community SolarResidential/Commercial/Grid Scale Source: GTM/SEIA: U.S. Solar Market Insight; Exec. Summary - Q4 2017

  14. Comparing Installation Costs Between 100 kW and 100 MW Community Solar Incorporates Net Metering, So These Systems Will Probably Be Limited to 5 MW or Less NREL; U.S. Solar Photovoltaic System Cost Benchmark: Q1 2017

  15. Community Solar vs. Clean Electric Choice • A community solar customer or subscriber is directly linked to a real solar project, where they own, lease or purchase the electricity generated from a portion of the large solar array, and reap net metering benefits; they must also be a customer of an electric supplier. • A clean electric choice customer purchases all their electricity, along with renewable energy attributes from a third-party supplier or broker; net metering doesn’t apply, and the RE attributes are from an aggregate of RE generators (i.e., wind and/or solar farms) located anywhere, most likely – out of state.

  16. Advantages of Solar for Farmers • Lower electricity costs • Diversification of the revenue stream • Increased ability to install high-value, shade-resistant crops for new markets • Marketing opportunity to sustainability-mindful audience • Ability to maintain crop production during solar generation • Allow for nutrient and land recharge of degraded lands

  17. Pollinator Friendly Solar • The solar energy system can host pollinators such as bees and butterflies as well as grazing animals such as sheep if planted with the right mix of vegetation. Benefits include: • Lower operations cost: e.g. No mowing • Higher yield on adjacent fields due to concentration of pollinators • Improves soil and water quality • Improves stormwater • management Photo credit: Rob Davis, Fresh Energy

  18. Voluntary Standards for Pollinator Friendly • Minnesota • Maryland • Penn State https://ento.psu.edu/pollinators/public-outreach/cert • Vermont Scorecard: https://www.uvm.edu/sites/default/files/Agriculture/ • Pollinator_Solar_Scorecard_FORM.pdf

  19. Solar for LMI Customers – The Challenge • Public subsidies for solar go predominately to homeowners - inequitable. • Tax credits much less useful to low-income/ low-tax households. • Low-income customers have difficulty securing financing – seen as a credit risk by most lenders. Problem is solar PV systems cannot be easily repossessed like cars. • Higher percentage of LMI customers rent. • Many LMI homeowners have difficulty maintaining their homes: Poor roofs and High maintenance costs

  20. Community Solar for Low and Moderate Income Customers • Current subsidies, e.g. CAP program can be used for Community Solar • With community solar, subscribers who move, die or stop paying can be quickly removed from subscriber pool and replaced with another subscriber. • Subscriber agreement needs to include basis for losing subscriber status – more than 60 days in arrears on subscriber payments • Much less administrative cost than utility shut-off or eviction. • Credit risk is spread across many subscribers. • Both reduce non-payment risk to lender.

  21. The Goal = Solar Power < Default Rate Financial modeling shows a community solar project can deliver electricity at less than default electricity price provided: • Long-term (15-20 year) financing – the surest way of reducing P&I monthly payment. • Sufficient scale to get down < $2/watt. • Developer, tax equity investors and lender not too greedy. • Subscriber organization able to maintain strong subscriber waiting list.

  22. Community Solar for LMI Customers • Utilities can reduce loan servicing costs by collecting subscriber payments on electric bill (as they do for energy payments to Electric Generation Suppliers for shopping customers). • Energy assistance programs such as the Customer Assistance Program (CAP) and the Low-Income Home Energy Assistance Program (LIHEAP) could provide payments to community solar project provided it delivers electricity at a rate at or below the utility’s default price. • Price Stability is a major advantage of solar • Utilities can administer community solar programs

  23. Next Steps

  24. Next Steps • House Bill 531 has been introduced and referred to the Consumers Affairs Committee • Build Broad Stakeholder Support • Build Bi-partisan support in both House and Senate: You can contact your Rep and Senator • Public Education to build demand

  25. Resources • Interstate Renewable Energy Council Guiding Principles: http://www.irecusa.org/publications/guiding-principles-for-shared-renewable-energy-programs/ • Coalition for Community Solar Access Policy decision matrix: http://www.communitysolaraccess.org/wp-content/uploads/2016/03/CCSA-Policy-Decision-Matrix-Final-11-15-2016.pdf • Low Income Solar Policy Guide http://www.lowincomesolar.org/practices/community-solar/ • Shared Renewables HQ http://www.sharedrenewables.org/

  26. Thank You Liz Robinson Philadelphia Solar Energy Association lizhrob2@gmail.com

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