US cities take green power to low-income homes

Carey L. Biron, Reuters

To hear Emil King tell it, the benefits of the 8,000-odd solar panels shimmering before him on an industrial lot in Washington DC go far beyond helping the US capital city fight climate change. The city-administered solar park was built on polluted land that had become an eyesore, and the power it produces has been used to halve the electricity bills of about 700 low-income local families, said King, a city environmental official. “The community saw that they’d be getting money off their bills, but that it was also going to be about a vacant property getting some attention and getting cleaned up,” he told the Thomson Reuters Foundation.

Solar projects like the Oxon Run Community Solar Farm reflect part of a growing push by cities across the United States to include lower-income communities that are increasingly seen as vital to achieving emissions goals. In Washington’s case, that means reaching 100% renewable energy by 2032.

Part of that target involves supplying solar power to 100,000 low-income households from city-subsidized community projects, using the new electricity source to reduce their energy bills. Unlike traditional rooftop units meant for a single household or business, community solar broadly refers to installations in which none of the electricity is used onsite, instead being fed into the grid but often earmarked for “subscribed” users.

That arrangement sets them apart from utility-scale solar projects, while community projects are also typically far smaller, able to fit into a variety of sites. “Community solar is the keystone element,” said King, a program analyst with the D.C. Department of Energy and Environment.

“We do a lot of rooftop (units), but this is the most efficient way to get a lot of capacity built fairly quickly,” he said, standing amid the ground-mounted solar modules that make up the city’s largest community project to date — even as new ones are regularly brought online.

Across the country, similar projects are seen as a key way to expand access to solar energy for lower-income residents or those for whom traditional installations do not make sense such as renters, people who do not own their roofs, and those with roofs unsuitable for solar installations.

“Community solar becomes this democratizing element for electric customers,” said Jeff Cramer, chief executive of the trade group Coalition for Community Solar Access (CCSA), “especially those that have been most left out by the clean-energy revolution and the grid of the past.” As cities set ambitious renewable energy targets and with an unprecedented wave of federal funding set to start arriving this year, the initiative is picking up so much momentum in places like Washington that officials are grappling to find new sites.

“We’re running out of space,” King said.

Earlier this year, the federal government, which has a goal of increasing community solar output by 700% from 2020 to 2025, hosted a summit stating that it was community solar’s “time to shine.”

“We went from a handful of projects in 2015-16 to thousands around the country,” Cramer said, amounting to nearly 5 gigawatts (GW) today.

The sector is currently growing by about 1 GW a year, equivalent to about 200,000 customers annually, and he expects that rate to jump in the coming years.

In January, the CCSA set a new target of providing community solar access to 10 million Americans by the end of the decade, or about 30 GW. Community solar has no set definition, said Nate Hausman, who manages the clean energy markets program at the World Resources Institute, a think-tank. “Unlike with rooftop solar, where it’s clear what you’re getting, subscriptions can be structured in different ways,” he said.

Payments can come upfront or over time. Some projects are offered at a premium as a way to support clean energy, while others aim to provide savings to low-income customers.

Whatever the approach, they are likely to become increasingly important to satisfy cities and states’ new sustainability goals.

“To reach the level of market penetration (cities) aim for, they’re going to have to involve the low- and moderate-income markets. It will involve reaching beyond the standard customer base,” Hausman said.

As in Washington, that is prompting local officials to look widely for potential sites, whether on roofs, parking lot canopies or on contaminated or other low-value land.

Federal legislation passed last year will create new tax credits for community solar projects, including money earmarked for installations on affordable housing complexes and in former fossil fuel communities, Hausman said.