The key question about any “community solar farm” is: “Who owns the project?”
You see, those mailers inviting you to join a “community solar farm” are from investor or developer owned solar projects. These are legitimate, but they are not owned by anyone in your community. More accurately, they should be called “subscription solar farms” because what they are offering is a chance to subscribe to their project with no upfront cost, and reap a small savings on your electric bill. For many who cannot build their own solar project, these projects are a good way to participate in solar energy. (For more: click HERE and scroll down)
Community owned solar farms are entirely different—they offer the opportunity to buy into a locally owned solar project. This model brings with it the full advantages of solar ownership including tax credits, sales of Renewable Energy Credits (RECS) and much higher savings on your electric bill.
There are important community advantages to community owned solar, too. For one, profits stay and circulate in the local economy. Another is the community resilience and pride that comes from collective action, reduced carbon emissions, and providing a local educational opportunity.
There are several ways a community owned solar farm can be even more environmentally proactive. If solar panels are located on land not suitable for forests or agriculture, or co-located with grazing or crops, for example. Solar farms can also retire their RECS, instead of selling them to polluters, which further reduces carbon emissions. Some solar farms offer an opportunity for low and moderate income residents to become co-owners, making clean energy more equitable.
This combination of advantages has motivated a growing number of groups to pursue community owned solar. Quite a few community owned solar farms now operate in Maine and other states.
The biggest hurdle for establishing community owned solar is the high upfront cost. Mitigating the cost has led to a number of different business models, including having a host or anchor organization that can offer financial support, having a lease to own arrangement, or establishing a cooperative.
The cooperative model offers self-governance and equity to its owners. Two organizations in Maine currently pursuing this model are the Center for Ecology Based Economy (CEBE) in Norway, ME and A Climate to Thrive (ACTT) on Mt. Desert Island.
No matter what business model is selected, setting up a community owned solar farm can be a lengthy process. Members need to be recruited and educated. Ownership, management, and financing structures need to be set up. A physical location needs to be identified and negotiated with landowners. Local buy in and permits need to be obtained. Contractors need to build the project, and then it needs to be connected to the grid. Ongoing maintenance like snow removal and grass cutting need to be attended to. Typically, it takes dedicated volunteers several years to pull together the pieces.
The good news is that as more projects go online, more templates and models become available. Community solar leaders are usually willing share what they’ve learned, so no one has to start from scratch. Each community will find the structure that best suits their needs and goals. And as they do, they will help us meet our state and national climate goals.
For Further Information:
Revision Energy: For MORE
Institute for Local Self Reliance: For MORE
Cooperative Development Institute: For MORE
People’s Solar Energy Fund: For MORE
Center for Ecology Based Economy: For MORE
A Climate to Thrive: for MORE