Community Solar Promises Sustainability, Affordability, and Equity in the Electricity Market

Community Solar Promises Sustainability, Affordability, and Equity in the Electricity Market

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Solar Panels

Community solar promises to bring clean, green energy to homes and businesses where traditional rooftop solar is not feasible. (Public domain, from https://www.pexels.com/photo/black-and-silver-solar-panels-159397/)


While California makes flashy headlines for our impressive progress on rooftop and utility-scale solar, we have typically struggled to take advantage of the benefits of an approach to localized and clean energy production known as community solar. With ongoing legislative advancements at the state level, billions in available federal funding, and countless innovative models and variations to fit local needs, now is the perfect time for that to change.

Broadly speaking, community solar refers to a range of different project models that aim to bring the advantages of cheap, local solar power to homes and businesses where traditional rooftop solar is not an option. Due to the incredible and ever-growing cost competitiveness of solar power, these projects usually offer guaranteed energy bill savings for consumers, with particular emphasis on helping low- and middle-income households better handle soaring costs. The most common model of community solar (often seen in the Midwest and on the East Coast) relies on a subscription-based system whereby customers pay a regular monthly amount to a community solar operator in exchange for credits on their regular energy bill, representing their stake in the energy output in excess of the amount paid for the subscription. These discounts are often guaranteed to be in the range of 10–20 percent, resulting in substantial savings for essentially zero cost. And this is without mentioning the benefits due to energy resiliency, carbon footprints, workforce development, and local air quality.

So why is this kind of service largely unavailable in our communities? The problem lies in a complicated web of absent legislative support, pushback from large investor-owned utilities, and a general lack of awareness on the part of the wider public. California has recently made a concerted effort to correct these mistakes and the recent passage of AB 2316, and ongoing deliberations within the California Public Utilities Commission will determine how the specifics of this revamped push for community solar will unfold.

With all of this in mind, we suggest that local community solar programs consider three proposals specifically targeted toward Pasadena Water and Power (PWP) and the City of Pasadena (CoP):

  1. Municipal Subscription Project: PWP develops and operates a small to mid-size solar installation on existing city property/properties. A set number of Pasadena residents are allowed to sign up to subscribe to the installation’s capacity for a fixed monthly fee, offering guaranteed energy bill savings with emphasis on inclusion of lower- and middle-income households.
  2. Community Stakeholder Project: In exchange for a small stake in project output, PWP and CoP collaborate with a local nonprofit community organization to develop an installation for the use of organization members. Members pay upfront to buy a fixed share of the array and are continuously credited for their share of the array’s output on their energy bill.
  3. Space-Leasing Project: PWP enters into agreements with property owners to install municipal owned and operated solar panels on local properties. PWP retains ownership of energy produced but pays out a monthly lease payment for space used in the form of credit on participants’ energy bills.

The success of community solar is highly dependent on local engagement, so please reach out to the Natural Resources Committee if you would like to be a part of our efforts. More information is available in our full report here.

—Leo Turner, Intern, Natural Resources Committee

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Natural Resources Committee
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PASADENA AREA