Community Solar: A New Win-Win Approach

More state and local governments and utilities are encouraging new solar plants to enhance flexibility of sources of electricity and to meet “green” goals. Building and maintaining a solar farm is now cheaper than that of a new fossil fuel-fired power plant, encouraging this even more. A problem that solar developers face – like any entrepreneur – is ensuring demand for the new plant. One approach is the many people who want to have solar panels but cannot have them on their homes because of shading or because they live in apartments without the space. Such people can invest in solar projects to get credit for creating solar power while the electricity generated from these plants go either to their community or certain spots, such as poor neighborhoods or nursing homes to help defray their costs. Such projects are called community solar.

For example, a community solar farm just began commercial operation in in Greene County, NY. The 3-MW solar project is under the category of “community” and, therefore, received funding and administrative support from the New York State Energy Research and Development Authority (NYSERDA).

In this project, residential and small business electricity users near the proposed project were given the choice to invest in this project simply by switching their electricity to solar energy generated by the project. Such a switch even allowed them to receive State credits reducing their electricity bill. The commitment of a minimum number of utility customers to solar was what was needed to know that the output of the proposed plant would be accepted into the grid. In this case, having the community choosing solar even if each could not house their own solar panels was sufficient for allowing the electricity into the grid and to allow the investment and construction to start.

But this project did not end there. The project also called for the development of 2.5 acres of pollinator-friendly habitat to be planted around the site. In addition, the project included nearly $10,000 in funding to a local land trust to restore floodplain forest and enhance public access to a nearby nature preserve.

Solar projects used to be individual homes or buildings installing solar panels on their roofs or nearby yards. That’s fine. However, solar is and will go farther with this new emphasis on the community contributing together to support the construction of a new solar plant in or near the community and contributing to its electricity mix. And with solar farms now being cheaper than conventional power plants, this can even lead to a decrease in electricity rates for the community.

CCES has the experts to help you decide whether solar or any other potential renewable project is right for your building or company. We can bring in the experts to design the source for you and project manage it to ensure you get the maximum benefits and utility and government incentives. Contact us today at 914-584-6720 or at karell@ccesworld.com.