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Community Solar in the United States (existing section)
Many states have adopted virtual net metering (VNM) policies, which allow businesses or households who have solar panels on-site to get net metering credits for any power generated by their solar panels that they do not use.[1] Relatedly, virtual net metering policies let businesses or households that subscribe to an offsite community solar project receive the net metering credits from that remote project.[2]
Community solar subscribers can only claim to use renewable energy if they receive the renewable energy certificates (RECs) associated with the electricity they are using.[3] Often, RECs are split from the electricity that community solar projects create and sold to utilities in order to help them comply with renewable portfolio standards implemented by states.[4]
Federal Programs
The solar Investment Tax Credit (ITC), implemented in 2006, is a one-time, 26 percent tax credit for commercial solar developers, including those who develop community solar projects.[5] While the solar ITC rate was scheduled to gradually decrease over time, Congress passed a two year extension of the 26 percent rate in 2020 alongside a COVID relief package.[6]
The Solar Energy Technologies Office (SETO) in the U.S. Department of Energy has sponsored various community solar related projects and research efforts.[7] One such program is the National Community Solar Partnership, a partnership of various community solar stakeholders with the aim of increasing accessibility and affordability of community solar programs in the U.S.[8]
Massachusetts (existing section)
In 2018, Massachusetts implemented the Solar Massachusetts Renewable Target (SMART) program as a replacement for the state’s former Solar Renewable Energy Credit (SREC II) program.[9] Under the SMART program, Massachusetts pays solar energy system owners at a fixed rate per kilowatt hour as an incentive.[9] This program was updated in 2020, and updates included an expansion of the definition of Low Income Customers and expanded consumer protection standards.[10]
Minnesota
In 2013, the Minnesota State Legislature passed a new law requiring Xcel Energy, the largest electric utility in the state, to begin a community solar pilot program.[11] Other utility companies in the state do not have the same requirement, but some are voluntarily developing community solar programs.[12] Xcel Energy still operates a community solar program in Minnesota, and the utility company oversees the Solar*Rewards program, the largest community solar program in the country.[13][14] Most of its participants are not individual households, but rather large-scale clients like businesses.[13]
In 2019, the Interstate Renewable Energy Council gave Minnesota an A grade for shared renewables programs, a category which includes community solar.[15] As of June 2020, Minnesota had the largest community solar market of any U.S. state in terms of megawatts alternating-current installed capacity.[16] In January 2021, there were 784 megawatts of community solar operational capacity in Minnesota.[17]
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- ^ "Virtual Net Metering: What Is It? How Does It Work? | EnergySage". Solar News. 2019-05-04. Retrieved 2021-02-23.
- ^ "Community Solar: What is it? | EnergySage". www.energysage.com. Retrieved 2021-02-23.
- ^ "The Role of Renewable Energy Certificates in Community Solar". guidehouseinsights.com. Retrieved 2021-02-23.
- ^ Heeter, Jenny (November 2014). "Status and Trends in the U.S. Voluntary Green Power Market (2013 Data)" (PDF). NREL.
{{cite web}}
: CS1 maint: url-status (link) - ^ "Solar Investment Tax Credit (ITC)". SEIA. Retrieved 2021-02-23.
- ^ "Solar investment tax credit extended at 26% for two additional years". Solar Power World. 2020-12-21. Retrieved 2021-02-23.
- ^ "Community Solar Basics". Energy.gov. Retrieved 2021-02-23.
- ^ "National Community Solar Partnership™". Energy.gov. Retrieved 2021-02-23.
- ^ a b "The Solar Massachusetts Renewable Target (SMART) Program | EnergySage". Solar News. 2020-07-07. Retrieved 2021-02-23.
- ^ Fekete, Emily (November 20, 2020). "States with Community Solar Policy Updates and Capacity Growth Potential" (PDF). NREL.
{{cite web}}
: CS1 maint: url-status (link) - ^ Eleff, Bob (January 2016). "Xcel Energy's Solar Community Garden Program" (PDF). Minnesota Legislative Reference Library.
{{cite web}}
: CS1 maint: url-status (link) - ^ "Community Solar Gardens | The Office of Attorney General Keith Ellison". www.ag.state.mn.us. Retrieved 2021-02-23.
- ^ a b "Xcel to state: Community solar program needs overhaul". MPR News. Retrieved 2021-02-23.
- ^ "Community Solar in Minnesota | EnergySage". www.energysage.com. Retrieved 2021-02-23.
- ^ "Key Takeaways | IREC Scorecard". 2017-03-03. Retrieved 2021-02-23.
- ^ "Community Solar". www.nrel.gov. Retrieved 2021-02-23.
- ^ "Why Minnesota's Community Solar Program is the Best – Institute for Local Self-Reliance". ilsr.org. Retrieved 2021-02-23.