Bringing equitable access to solar energy for low-to-moderate-income communities starts with addressing the financial and knowledge barriers
Millions of Americans in low-to-moderate-income communities face steep cost barriers to benefiting from traditional models of solar energy in addition to a myriad of other barriers, and it doesn’t stop there. The organizations that serve them are facing similar hurdles when it comes to accessing clean energy programs. While community solar programs have been established in multiple states to address this issue of accessibility, participation has typically been low even though the programs often cost nothing or require only a very minimal fee to join. Furthermore, they even offer savings on energy costs.
Community solar is not always on the radar when it comes to organizations considering options that serve disadvantaged communities – and this is part of the problem. Community solar is the most accessible option for clean energy initiatives and is designed to increase participation in solar. In an ideal situation, community solar should be one of the first options to be considered. However, this can only happen through increased education about the solar programs available to these organizations.
Case Study: Christopher Community’s Journey to Community Solar
Take for example the path Christopher Community, an affordable housing provider, took to selecting community solar. Initially, they had considered rooftop solar for their properties but discovered that it would not have the impact they had initially imagined. Not all their rooftops were suitable for solar panels, and there was also the additional consideration of time and cost burdens of investing in solar systems.
What people often don’t consider is the time it takes to take on a solar project themselves. Learning about solar arrays, the permitting process, and the installation process can all take time away from the primary focus.
When Christopher Community learned about community solar, they weighed the overall cost of rooftop solar against community solar and decided on community solar. Subscribing to a community solar project was their ideal solution that would allow them to participate in renewable energy programs while saving money on their electricity bills. Furthermore, they wouldn’t need to worry about any upfront costs or maintenance fees.
Here are some additional benefits to community solar:
| Rooftop Solar | Community Solar | |
| Solar Array Ownership | Must be purchased | Shared subscription to project |
| Initial Capital Investment | High installation costs | No upfront costs |
| Electricity Cost Savings | Up to 15% | Up to 10% |
| Maintenance and Operation | Required | Not Required |
| Good Credit Score | Yes | Not Required |
| Tax benefits | Yes | No |
Community solar programs are made possible through solar farms where the solar developer assumes the cost and responsibility for building and operating the solar farm. If the farm is designated as one that offers a community solar program, then local businesses and households can subscribe to the project without fees or other costs. Many developers can pass on a 5%-10% discount on energy to the subscribers.
A single community solar project can power hundreds and sometimes even thousands of homes. For those who do not have the means or space to install solar panels onto their rooftops, community solar is the perfect option. It also favors renters and those who live in apartment complexes who are unable to install solar rooftop panels.
Organizations that service low-to-moderate income households can simply partner with a solar developer or broker to find a community solar program in their area. First, the community solar provider will size their electricity usage, usually for a year to get the most accurate picture. Then, the provider will match the organization to a community solar program in their utility region and assign a share of the program to the organization. The savings typically range from 5% to 10% and usually have no fee attached. Some providers may attach a nominal fee of around $5 per month to administer it.
Furthermore, businesses and organizations that sign up for community solar can redirect money back into their programs, creating a “knock-on” effect. These money-saving strategies positively impact the financial needs of an organization and set a leading example for other organizations to do the same. It’s a win-win strategy: it lowers the energy bill while taking an active role in addressing climate change.
Largely, these solar programs are working towards expanding access to affordable energy in every household. A survey conducted by Uplight found that low-to-moderate income (LMI) customers tend to be less aware of energy-saving programs, and 32% of LMI households reported having financial challenges with their electricity bills. This is three times the rate of higher-income households. Being able to communicate the long-term benefits of community solar as a money-saving solution, is key in granting LMI households the opportunity to reap the rewards of a practical program.
Despite having enough solar energy to power nearly every American household, many still face obstacles to affordable solar-powered electricity. Community solar is a powerful solution that provides affordable solar energy to any household regardless of their income level. It’s not necessary for a person to own their own home or have a suitable rooftop space in order to participate in community solar’s incentives. Furthermore, cutting down costs for low-income households can provide some financial relief while allowing them to be environmentally responsible.
Community solar is solar for everyone,” says Pallavi Balakrishnan, Community Solar Manager at OYA Solar, “Whether you’re interested in sustainability, saving money on electricity, or developing your long-term energy strategy, community solar is the accessible, low-risk option.”
A community solar program is a viable option for everyone, one that targets all income levels. It is also a progressive step towards achieving the Biden-Harris Administration’s goal of 100% clean energy by 2035, ensuring that each household can partake in clean energy incentives while building community wealth. Community solar really is a two-bird-one-stone formula where subscribers are able to save money while contributing to a more sustainable future.
1 Flanegin, K. (2018, September 12). Can Low-and-Moderate Income Households Play a Role in Realizing U.S. Rooftop Solar Technical Potential? Retrieved November 5, 2021, from https://www.nrel.gov/state-local-tribal/blog/posts/can-low-and-moderate-income-households-play-a-role-in-realizing-us-rooftop-solar-technical-potential.html
While community solar programs have been established in multiple states to address this issue of accessibility, participation has typically been low even though the programs often cost nothing or require only a very minimal fee to join.
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