Community solar: A powerful tool for expanding low-income access to solar benefits

Berlyn Hubler, community solar program manager at nonprofit Energy Outreach Colorado, has seen the impact of community solar on low- and moderate-income (LMI) communities firsthand.

“We often hear that subscribers are excited to pay their bill because it’s affordable,” she said. “These households no longer need to make tough decisions related to their energy use. They can turn on their air conditioning and not worry about affording food or medicine next month.”

Many states have only recently enacted policies and practices linking community solar and low-income communities. It will take time for benefits like those seen in Colorado to become apparent in significant numbers. However, community solar’s ability to impact Americans in need is undeniable.

Community solar and low-income communities

Three-fourths of U.S. households cannot install rooftop solar, whether from unsuitable roofs or lack of homeownership. With 50 million people considered low-income and having a high energy burden, community solar becomes an accessible way for these families to save money on their electricity bills while supporting solar energy.

Community solar developer Standard Solar’s Megan Byrn, VP of business development, and Trevor Laughlin, senior analyst of policy and regulatory affairs, said that community solar evens the playing field for those taking advantage of clean energy. They said community solar enables LMI households to save money while stimulating local economies, strengthening the power grid and reducing carbon emissions “in places where environmental classism has been rampant for generations.”

Community solar is democratizing solar energy access and promoting equity, and industry stakeholders are focusing on this needed community connection.

Developers promote equity in community solar

Some solar developers are committed to developing projects that benefit communities in need. Standard Solar often ensures its projects will benefit LMI populations. Then during project commissioning, the company eliminates barriers to LMI subscribers, such as registration or cancellation fees.

“Initially, we confirm market and regulatory discount guidelines to ensure we’re providing the guaranteed savings available to LMI communities,” said Byrn and Laughlin jointly. “Then we consult with local planning and zoning authorities as we move through the engineering and construction phases to make sure we comply with regulations.”

Developer Pivot Energy, one of the largest low-income providers in the community solar space, works with community-based organizations to develop trust with LMI families. Pivot partnered with Energy Outreach Colorado to offer subscriptions to Pivot’s community solar gardens paired with energy bill assistance.

“As developers, it is our responsibility to make community solar subscriptions as meaningful as possible,” said Annie Lappée, Pivot VP of strategy and impact. “We need to also look for innovative partnerships with utilities and corporations looking to purchase renewable energy credits to help us offer the best build discount rate and simplify the subscription process.”

Kate Larkin, director of community solar for developer OneEnergy Renewables, said that community-focused groups have been a big help for OneEnergy’s community solar projects in Minnesota. The company created a unique partnership with a local cooperative association to ensure solar subscribers enjoyed direct ownership and profit sharing as well as typical subscription savings.

“It’s critical to continually engage local community groups to support and share community solar’s cost-saving and environmental benefits. Ensuring that we can save real people real money is the only way our projects are successful,” she said.

The vital role of policy

Of the 24 states with community solar programs, just 14 have a low-income participation provision. Some states have LMI capacity carveouts, while others try to align low-income assistance programs so community solar is positioned as another form of assistance, like 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 Solar Access (CCSA), have self-attestation qualification processes and consolidated billing. Minnesota and Maryland recently added consolidated billing to their programs. NREL has identified incentives like financial subsidies and voluntary utility-led programs as important for equitable community solar development.

Community solar programs don’t happen without industry advocates like Standard Solar, Pivot Energy and OneEnergy Renewables educating and promoting this growing solar market. Advocacy group Vote Solar has been especially vocal in its support of community solar, and Vote Solar policy managing trio Farudh Emiel, Marta Tomic and Nathan Phelps said the group “leverages strategic partnerships and engages in rule making, implementation and program review processes to ensure that community solar initiatives are effectively executed and equitable.” The organization also contributed to the creation of the “Low-Income Solar Policy Guide,” a resource for policymakers, community leaders and others.

This focus on equity has entered the federal conversation, too. The IRA has two programs focused on increasing low-income participation and community solar. One is the low-income bonus credit program, which allows community solar developers access to a higher investment tax credit if they develop projects that serve low-income customers at a meaningful level. The other is Solar for All, a $7 billion grant program to boost equitable access to both rooftop and community solar.

Still steps to take

Despite these positive developments, Richard Keiser, founder and CEO of community solar subscription manager Common Energy, said that for community solar benefits to reach low-income communities at a large scale, they need to be structured differently. The most ideal way, he said, is for utilities to automatically enroll low-income households that qualify, because this would both simplify the enrollment process and ensure that the higher savings rates reach those who need it most.

Keiser also believes that larger housing authorities should qualify for community solar programs and be permitted to directly push savings benefits to customers.

“This is much more effective than requiring individual enrollment of low-income households, which will ultimately limit the programs,” he said, noting that New York’s policies recognize 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 equitable access to community solar 

Pivot’s Lappée pointed to the fact that only 12% of community solar subscribers in America come from LMI households.

“Community solar is ready to serve low-income customers, but we have only just started to scratch the surface of its potential,” she said.

There is much the solar industry can do to help equitable community solar realize its full potential, though it will not be simple.

“Serving low-income customers is not the path of least resistance,” said CCSA’s Burgos-Veras. “It requires commitment from developers, legislatures, utility executives and community-based organizations to all work together to lower existing barriers.”