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SOLAR: Minnesota solar advocates say a recent change in how Xcel Energy manages its substations is unnecessarily limiting solar development. (Energy News Network)
ALSO:
LINE 5:
CO2 PIPELINES:
UTILITIES: Minnesota regulators approve interim electric and gas rate increases for infrastructure and clean energy investments from Xcel Energy and Minnesota Power. (Star Tribune)
GRID: Cuyahoga County in northern Ohio is set to launch what officials say is the first electric microgrid utility in the United States that will build three projects near Cleveland. (Morning Journal)
BIOENERGY:
CLEAN ENERGY: Missouri officials are preparing to distribute millions of dollars in federal funding for grid infrastructure investments, electrification and clean energy work training. (St. Louis Post-Dispatch)
COAL: University of North Dakota researchers say they have found a feasible and economic way to extract critical metals from lignite coal. (MPR)
SOLAR: New U.S. solar installations are expected to reach a record 33 GW by the end of this year, but growth is expected to slow in 2024, according to a new industry report. (Reuters)
ALSO: Minnesota solar advocates say a recent change in how Xcel Energy manages its substations is unnecessarily limiting solar development. (Energy News Network)
CLEAN ENERGY:
CLIMATE:
CARBON CAPTURE: Environmental groups raise concerns about a proposal to store captured carbon dioxide beneath U.S. Forest Service lands. (Floodlight)
OIL & GAS: A new report finds “excess profits” in the oil industry and other sectors exacerbated inflation in 2022. (CNBC)
ELECTRIC VEHICLES:
MATERIALS:
ELECTRIFICATION:
COAL: Georgia Power presses to keep two coal-fired power plants open a decade longer than planned, despite one’s ranking in a recent study as the second most deadly polluter among U.S. coal plants. (Georgia Public Broadcasting)
A year after the federal government promised new rules governing how electric vehicles can qualify for tax credits, the Treasury Department’s official guidance is finally here.
The Biden administration rolled out the guidance last week, including tests to determine if a car contains enough U.S.-made components to qualify for all or some of a $7,500 credit. Vehicles that contain parts or materials from China and a few other countries won’t qualify for full incentives.
The Treasury Department hasn’t yet published a list of what EVs meet the new requirements, which would take effect next year. But an auto industry trade group said the 20 models that currently qualify for federal incentives will continue to do so, E&E News reports.
The new rules could cause problems for Ford and other automakers that have licensed Chinese technology for their EVs. They could lose out on a piece of $6 billion in federal grants for U.S.-made EVs, and sales could suffer in comparison to automakers that qualify for federal tax credits.
Meanwhile, some car buyers could still be apprehensive about the lack of public EV chargers in many parts of the country. Two years ago, Congress allocated $7.5 billion to build tens of thousands of EV chargers, but as Politico reports, the program still hasn’t funded any charger projects, and states and charging companies say complicated requirements to receive the funds are to blame.
How the Biden administration navigates EV chargers, tax credits and more will determine just how quickly Americans decide to swap out their gas cars — and whether the White House can reach its EV deployment goals.
🏭 Methane in the crosshairs: The U.S. EPA unveils new methane emissions standards that will require oil and natural gas producers to upgrade equipment and regularly inspect their pipelines and infrastructure for leaks. (E&E News)
💡 Time to get efficient: The world needs to double the pace at which it’s deploying energy efficiency measures, such as installing heat pumps and LED lightbulbs, if it hopes to meet global climate goals, the International Energy Agency says. (Reuters)
☑️ Biden’s climate to-do list: Environmental advocates release a to-do list of climate actions they want President Biden to take in the last year of his term, including a slew of EPA regulations and other Cabinet-level actions. (Washington Post)
🚘 UAW’s next step: After a successful strike against the Big Three automakers, the United Auto Workers announces plans to organize workers at three non-union electric vehicle companies. (CNN)
☀️ Made in the USA: A solar company says it’ll soon build arrays out of U.S.-produced materials, which could be the first projects to qualify for federal tax credits with domestic production requirements. (Bloomberg)
📉 California’s solar collapse: California rooftop solar installations have plummeted by up to 85% since regulators slashed the rates utilities pay for excess solar power sent back to the grid, according to an industry group. (Canary Media)
👷Tribes turn to solar: Indigenous entrepreneurs in North Dakota and elsewhere are building solar farms on reservations, and training tribal members to install them. (BBC)
World leaders gathered in Dubai last week and through the weekend to discuss climate action. Here are some of the highlights:
This article originally appeared on Planet Detroit.
Advocates across Michigan celebrated last week as Gov. Gretchen Whitmer signed into law a package of energy bills targeting 100% clean power by 2040, positioning Michigan as a national climate leader.
But environmental justice advocates say the legislation, dubbed the “Clean Energy Future” package by supporters, had a major omission by making no provision for community solar, which allows residents to subscribe to third-party-owned solar arrays in exchange for energy bill credits.
The Michigan Environmental Justice Coalition (MEJC) is pushing for the passage of Senate Bills 152 and 153 and House Bills 4464 and 4465, introduced in the spring, which would enable community solar in Michigan.
But so far, none of the bills have come up for a vote, although the House Committee on Energy, Communications and Technology heard testimony on the House bills in November.
“It’s no secret that we are not very happy with the Clean Energy Future package,” Roshan Krishnan, policy associate at MEJC, told Planet Detroit. Krishnan said enabling community solar would accelerate solar buildout in the state and reduce demand for carbon capture and biofuels — polluting technologies included in the bill package — which MEJC opposes.
Backers say community solar, more accessible to lower-income customers and those living in multifamily housing, is crucial to building equity into the energy transition. They tout other benefits like improved energy reliability and lower bills for renters and others who can’t install rooftop solar.
But they say Michigan utilities are wielding their influence and political spending in Lansing to block legislation enabling community solar owned by third parties, even though the concept enjoys bipartisan support.
Michigan’s two largest investor-owned utilities, DTE Energy and Consumers Energy, have long fought laws enabling community solar. They argue such laws are unnecessary and would add costs for other customers. And they’ve spent millions in the last two years to influence lawmakers as such laws were being considered.
According to the U.S. Department of Energy, 22 states and the District of Columbia have policies in place that enable community solar. Most projects are concentrated in four states: Minnesota, New York, Massachusetts and Florida.
Ed Rivet, executive director of the nonprofit Michigan Conservative Energy Forum, told Planet Detroit he believes the public’s increasing embrace of renewable energy could give groups like his leverage to pressure lawmakers to bring community solar to Michigan.
“Part of our work … is to say to legislators, ‘Look, people want to do this in your district. Republicans and Democrats alike want to do this. Go ahead and ask folks in your district and see what you find’,” Rivet said.
Rivet said utilities’ influence in Lansing is the major hurdle to passing community solar legislation.
“If there’s resistance to the legislation being adopted, it’s coming from a singular vantage point, that being the utilities,” he said.
DTE and Consumers are unequivocal in their opposition to community solar. DTE spokesperson Peter Ternes told Planet Detroit the proposed community solar legislation is “unnecessary” and would “allow developers to cherry-pick customers and force the utility’s remaining customers to subsidize the program – challenging affordability for our customers.”
Consumers spokesperson Brian Wheeler also called the legislation “unnecessary,” warning that it would allow “unregulated, out-of-state solar developers” to have “unfiltered access to the grid while pushing for a premium price for their own solar projects at the expense of low-income customers.”
Ternes and Wheeler each endorsed their respective companies’ utility-owned programs, DTE’s MIGreenPower and Consumers’ Solar Gardens, where residents voluntarily charge extra bills to support utility-owned solar developments.
Rivet criticized these programs, noting they are designed so customers pay more for clean energy without receiving a financial benefit for investing in a power source that is cleaner and often cheaper than others.
There’s little doubt utilities are spending resources to influence legislators. Utility watchdog group Energy and Policy Institute revealed that political action committees (PACs) tied to DTE and Consumers gave nearly $500,000 to campaign accounts for Whitmer, state legislators and state party funds in 2023 while renewable energy legislation was being considered, with 80% of legislators taking money from these PACs.
The analysis showed that key Democratic lawmakers received far more than other party members this year. For example, House Speaker Joe Tate (D-Detroit) took $30,000 from utilities, and Senate Majority Leader Winnie Brinks (D-Grand Rapids) received $15,500.
In 2022, DTE-affiliated dark money groups gave $2 million to Democratic groups.
A 2021 study from Michigan State University found that enabling community solar would create thousands of jobs over the next 25 years and bring $1.5 billion in economic benefits.
And advocates say it would better position the state to compete for grants through the $7 billion federal Greenhouse Gas Reduction Fund for projects that reduce or avoid planet-warming emissions, emphasizing low-income and disadvantaged communities.
But they say the greatest potential benefits lie in creating opportunities for low-income residents to lower their energy bills and access more reliable power. Residential customers in Michigan pay the highest rates in the Midwest, and DTE and Consumers are some of the worst utilities in the nation for the duration of blackouts. On Dec. 1, the Michigan Public Service Commission approved a $368 million rate increase for DTE that would add $6.51 to the average customer’s monthly bill.
HB 4464 would require 30% of each community solar project to go to low-income households or service organizations.
In comments to the Michigan House Energy, Communications, and Technology Committee in November, Dr. Elizabeth Del Buono, president of Michigan Clinicians for Climate Action, said community solar would also be a win for public health.
Del Buono said community solar will make the grid more reliable during power outages when paired with battery storage, “thereby protecting the health of vulnerable patients dependent on electricity to breathe and be mobile.”
According to John Richter, senior policy analyst at the nonprofit Great Lakes Renewable Energy Association, additional legislation would be in order if community solar did pass.
That would include raising the state’s “solar cap,” which sets the percentage of peak yearly load that a utility must buy from distributed energy producers.
The Clean Energy Future package raised this number from 1% to 10%, but State Sen. Jeff Irwin (D-Ann Arbor) introduced Senate Bill 362 this year to remove the cap. Irwin’s bill would also restore “net metering,” where rooftop solar customers are credited for energy put back on the grid at the same retail rate they pay for electricity.
Following intense utility lobbying, net metering was replaced by an “inflow-outflow” tariff in 2018, which deducts transmission costs from credits. That change increased the time to recoup up-front costs for the average rooftop solar producer from roughly nine years to 13 years.
Richter said that if these credits aren’t increased, “it would basically be pointless” to try to make community solar projects work economically for residents and developers.
But with Democrats losing their majority in the Michigan House in 2024, community solar may be one of the few energy priorities that could move forward, according to Rivet.
“Because it does have bipartisan support, it at least has a chance of being the next round of dialogue on energy policy,” he said.
Krishnan is less optimistic.
“Nothing is going to move unless the leadership actually steps up to the plate and does it,” he said. “And they’ve shown absolutely no inclination that they are willing to do so, which I think is frankly reflective of their extreme lack of commitment to environmental justice.”
An unlikely collaboration between a Kentucky coalfield county and Kentucky’s largest city began when a former high school English teacher, Megan Downey, walked into the Lawrence County courthouse in Louisa in August.
Inspired by a personal desire to find ways to tackle the impacts of climate change, Downey had launched a nonprofit called The Solar Collaborative last year in Virginia dedicated to helping Appalachian communities transition to renewable energy.
She had been pitching an idea to local governments across Eastern Kentucky: Seek some of the billions in federal funding up for grabs in the Solar for All competition. Through the competition, the U.S. Environmental Protection Agency plans to invest $7 billion through 60 grants to states, local governments, nonprofits and tribal governments to “increase access to affordable, resilient, and clean solar energy for millions of low-income households.” The money comes from the Inflation Reduction Act’s Greenhouse Gas Reduction Fund.
When Downey talked with Deputy Judge-Executive Vince Doty about the opportunity, he agreed “within minutes” to sign up.
“He’s the biggest advocate, I think, in the whole region for this type of project,” Downey said. “A lot of low-income communities don’t have access to that economic savings that’s associated with solar, and so it’s just one more way in which a wealth gap is continuing to increase.”
Doty brought other Eastern Kentucky counties on board for an application to the competition; judge-executives in Lawrence, Johnson, Martin, Floyd, Pike, Boyd, Greenup counties all wrote letters of support. After learning they had both submitted letters of intent to apply for the federal funding, the mountain counties teamed up with Louisville’s government to submit a unified application that could provide affordable access to solar energy for thousands of low-income homes in Kentucky from its largest cities to its rural Appalachian counties.
It’s one of two competing applications from Kentucky. The other was submitted by the Kentucky Energy and Environment Cabinet; solar advocates say it could be a significant boost for the use of residential solar across the state.
Advocates argue more distributed solar, for example via solar panels on rooftops, could mean utility bill savings for Kentuckians and a curbing of greenhouse gas emissions connected to Kentucky’s fossil fuel-reliant electricity grid.
For Doty, seeking funding for solar was foremost about easing the financial burden of his constituents in a region that faces continued economic challenges from the decline of the coal industry. Lawrence County is one of 20 Eastern Kentucky counties served by electric utility Kentucky Power, which has the highest monthly residential utility bills in Kentucky, according to a state analysis.
“We always try to put our citizens first,” Doty said. “If there’s a chance that we can save somebody $300 a month off their electric bill, that’s worth trying for.”
Both the Louisville-Eastern Kentucky and state government proposals are wide in scope, highlighting specific ideas for how to use tens of millions of dollars in federal funding. Both applications could mean integrating solar energy into thousands of homes, whether through direct ownership of rooftop solar installations or better access to existing or planned community solar projects.
The Louisville-Eastern Kentucky application is asking for $150 million to be spent over five years, proposing:
Downey said Doty had advocated in a number of meetings as the Louisville-Eastern Kentucky application was being developed that it was a “non-negotiable” that Kentuckians should own the solar installations themselves
The application anticipates, if awarded funding, at least a 20% energy bill reduction for approximately 7,300 households in Kentucky taking part in the proposal. Households that ultimately receive a six-kilowatt solar installation for free could see energy bill reductions up to 50%, according to the application.
“If you put solar on your home, you immediately have benefits economically from the savings that you garner. It also increases the value of your home,” Downey said. “So this has the potential for a really significant impact if you look at it over 25 years as far as wealth generation goes.”
The Louisville-Eastern Kentucky application estimates the results of the funding would add another approximate 44 megawatts of distributed solar power onto Kentucky’s grid. That would increase distributed solar in the state by about 70%, with 63.5 megawatts of distributed solar already in Kentucky.
The application also estimates about 1,300 “green jobs” will be created through the proposed solar investment. Steve Ricketts, the board chair of the advocacy group Kentucky Solar Energy Society, said while construction work associated with larger, utility-scale solar projects is temporary, ending once the project is completed, those workers also can work on installing solar in their own communities.
“They can be working on homes in their own town, they can be working on businesses and around town. So the two are incredibly complementary, and, frankly, have to go together to make it all work,” Ricketts said.
Sumedha Rao, the executive director of Louisville Metro Government’s Office of Sustainability, said the estimates of solar power added, households helped and renewable energy jobs created through the funding proposal are somewhat conservative and that the impact of the grant could be even more.
Given that Kentucky has historically relied on fossil fuels, she said, a transition to renewables can be a “scary proposition” for some Kentuckians. But she believes the Solar for All grant competition has a lot of upside with helping the state transition economically.
“We really feel like this is something that can have a massive impact for years to come,” Rao said.
The Solar for All application submitted by state officials leads with its own idea of how residential solar can be deployed across the state, particularly in areas hit by devastating floods and tornadoes in recent years.
Requesting $100 million from the Solar for All competition, one of the state’s proposals is to put residential solar and an electricity battery storage system on 850 “disaster recovery” homes that could result in 70% utility bill savings for each home — or up to $1,000 in annual bill savings per home — over the course of 20 years.
For Kenya Stump, the executive director of the state’s Office of Energy Policy, eliminating most of the energy bills is just one way to help people recovering from natural disasters who may have lost every material thing they own.
“If they can live in a home from here on out that is more resilient, that also has the burden of that kind of cost is no longer there — shouldn’t we kind of strive for that?” Stump said.
Stump said in many instances low-income Kentuckians live in homes that are old and energy inefficient, leading to higher energy usage and subsequently higher utility bills. She said by enrolling LIHEAP recipients in community solar programs — such as ones offered by East Kentucky Power Cooperative and Louisville Gas and Electric and Kentucky Utilities (LG&E and KU) — they can get a direct credit on their bill and get more value from the utilized renewable energy.
“The energy regardless of the source will just still leak out” of poorly insulated, inefficient homes, Stump said. “We also hope that this will incentivize the growth of more municipal and utility community solar offerings that would be eligible to have LIHEAP carve-outs as well.”
Some stakeholders involved in the Louisville-Eastern Kentucky application, while supportive of community solar projects in general, were skeptical of using Solar for All funds on such projects out of concerns that some community solar models, specifically LG&E and KU’s “Solar Share” program, subsidize an asset of an investor-owned utility with taxpayer funds.
Stump said while stakeholders may wish some existing community solar projects were designed differently, it’s what is currently offered by Kentucky utilities and “can provide some benefit” to low-income Kentuckians that haven’t been able to take advantage.
The two Kentucky applications submitted to Solar for All do align on ways to boost the workforce needed to install residential solar on homes, though Stump added that developing a renewable energy workforce needs to be paced with the deployment of solar.
“That’s our greatest challenge is to make sure we get the timing right so that it aligns with the deployment of projects. We don’t want to give someone hope, and then there not be any work,” Stump said.
For Stump, the Solar for All competition is just one federal program and incentive among many that will ultimately “shift and transform our energy landscape.”
Lane Boldman, the executive director of the environmental advocacy group Kentucky Conservation Coalition, believes both applications are “really solid” but points out the federal government is only giving out 60 grants. Competition for the grants is stiff: More than 30 states have submitted notices that they’re applying along with a number of local governments and nonprofits across the country.
Lawrence County and Louisville decided to collaborate, in part, to increase the chances that their Solar for All application would get awarded. The stakeholders with Lawrence County and Louisville also tried unsuccessfully to unify their application with the state’s proposal.
Boldman said a big question became if a single grant application could ask for enough funding to cover all of the “great ideas” being proposed for the competition.
“The decision really was that it was better to keep them as two separate applications,” Boldman said. “I have to say that I think both grants are very strong and deserving, and so we just have to wait and see what the federal government decides.”
EMISSIONS: The U.S. EPA is set to release new methane regulations tomorrow as the oil and gas industry contends the proposed rules clash with other federal and state standards. (E&E News)
SOLAR: California rooftop solar installations have plummeted by up to 85% since regulators slashed net-metering rates in April, putting some 17,000 jobs at risk by the end of the year, according to an industry group. (Canary Media)
CLIMATE: Environmental advocates release a to-do list of climate actions they want President Biden to take in the last year of his term, including a slew of EPA regulations and other Cabinet-level actions. (Washington Post)
ENVIRONMENTAL JUSTICE: The Federal Energy Regulatory Commission has taken steps toward including environmental justice in its decisions but still has further to go, advocates say. (Utility Dive)
WIND:
POLITICS:
ELECTRIC VEHICLES: General Motors’ chief financial officer expects the automaker to start making a profit on electric vehicle sales in 2025 as it produces higher-margin models. (Associated Press)
COAL: West Virginia’s fund to clean up abandoned coal mines is sagging so badly that even one bankruptcy by a significant mining company could wipe it out and leave state taxpayers stuck paying for cleanup costs. (Mountain State Spotlight/ProPublica)
OIL & GAS:
STORAGE: Georgia leans into battery storage to leverage around-the-clock power from its rapidly growing solar energy sector, highlighted by Georgia Power’s impending completion of a 65 MW battery facility. (Atlanta Journal-Constitution)
GRID: Utility regulators in PJM’s region urge the grid operator to shift from a reactive planning approach to more proactive and affordable ways of planning grid reliability. (Utility Dive)
NUCLEAR: TerraPower and a mining company partner on an effort to restore domestic uranium supply chains and to fuel the Bill Gates-backed firm’s proposed advanced nuclear reactor in Wyoming. (Cowboy State Daily)
SOLAR: Data show new California rooftop solar installations have plummeted by up to 85% since regulators slashed net-metering rates in April, potentially wiping out some 17,000 jobs by the end of the year. (Canary Media)
ALSO:
WIND: California officials remain confident in offshore wind’s future in the state even though the industry is experiencing setbacks on the East Coast. (San Diego Union-Tribune)
TRANSMISSION: The federal Bureau of Land Management seeks public input on proposed changes to designated Western energy corridors aimed at expediting clean energy transmission development. (RTO Insider, subscription)
TRANSPORTATION: Colorado transportation officials say proposed passenger rail in the northwestern part of the state could be operational in less than a decade. (CPR)
UTILITIES:
NUCLEAR: TerraPower and a mining company partner on an effort to restore domestic uranium supply chains and to fuel the Bill Gates-backed firm’s proposed advanced nuclear reactor in Wyoming. (Cowboy State Daily)
STORAGE:
CARBON CAPTURE: New Mexico researchers study the feasibility of geologically sequestering captured carbon in the San Juan Basin oil and gas fields in the northwestern part of the state. (Santa Fe New Mexican)
HYDROPOWER: California lawmakers work to expedite wave energy development, but industry analysts say grid-scale implementation is at least a decade away. (CalMatters)
GEOTHERMAL: A western Colorado town begins studying the feasibility of developing a geothermal loop district heating system. (Aspen Times)
A group of Massachusetts solar installers are working with the state to modify fire codes that they say are too restrictive and are limiting the scale of residential solar arrays.
“We are not at the finish line, but both sides have been extremely cooperative and collaborative,” said Nick D’Arbeloff, vice president of commercial for SunBug Solar and the vice president of the Solar Energy Business Association of New England. “The dialogue is producing good results.”
At the heart of the debate are provisions of the most recent state fire code, which went into effect in December 2022.
For the first time, the code includes restrictions on the positioning of rooftop solar arrays intended to make it easier and safer for firefighters to move around on top of burning houses. The code calls for a setback from the ridgeline of a roof, leaving enough space for firefighters to cut into the roof to ventilate the home and allow smoke to escape. It also requires pathways through and around panels so firefighters can get where they need to go.
“It sets requirements on how much space is necessary or required to be there so firefighters can travel unimpeded by solar panels,” said Jake Wark, spokesman for the state Department of Fire Services.
The solar industry objected to the changes for a few reasons. The setbacks and pathways required mean reducing the total area of just about every rooftop array from 10% to 20%, and smaller arrays mean less revenue for installers. Some potential customers even pulled out entirely because the economics of the system didn’t work for them with fewer panels.
Some installers also objected that clearing so much room for firefighters isn’t necessary. All modern solar installations, they said, include a switch that can instantly stop the flow of any electricity through the panels, which would allow firefighters to easily and safely break through with a swing of an axe. The state, however, was not convinced these switches could be thrown quickly enough or provide enough safety.
“Panels always provide an electrocution hazard,” Wark said.
The suddenness of the new code also made for a rough transition, installers said. For years, similar rules have been part of the national model code many states use as a template for their own codes. In Massachusetts, however, the solar provisions had always been removed, with the understanding that the state building code would eventually address the issue, Wark said. So the solar rules in the new fire code were unexpected by many in the industry.
“The transition was absolutely awful, and we ended up having to redesign a lot of arrays,” said Mark Durrenberger, president of solar installation company New England Clean Energy. “The code we’re answering to is not entirely clear, so it leaves lots of room for interpretation”.
The municipal code officials in charge of inspecting solar installations were also caught somewhat unprepared. From town to town, building and fire inspectors interpreted the rules with different degrees of stringency. Sometimes, Durrenberger said, they just got it plain wrong – in one case applying the rules for residential installations to an array atop a barn – for example. For installers working on projects in multiple towns, the whole situation was rife with uncertainty.
“Fire chiefs weren’t necessarily as prepared as they perhaps should have been with regards to how best to review designs and enforce this new code,” D’Arbeloff said.
In the face of this upheaval, the Solar Energy Business Association of New England, MassSolar, and the Northeast Clean Energy Council reached out to the state to see if they could find a compromise. The Department of Fire Services agreed to create a working group, including representatives of the solar industry, to look for solutions. Several months in, the participants have made significant headway, and the solar industry has accepted the need to make some concessions.
“The solar industry’s concern was that we would be unable to put in place a system capable of offsetting the full load of the household as a result of these setbacks,” D’Arbeloff said. “While that still may be the case, we fully understand why compromise is called for here.”
Whatever adjustments to the rules come out of the process, both sides will have to take responsibility for making implementation go as smoothly as possible, D’Arbeloff said. The Department of Fire Services will need to offer additional training in the new code, but installers will also have to make sure their designs and drawings clearly communicate the ways in which their plans adhere to the rules.
There is still plenty of work to do, but Durrenberger is hopeful that a modified code will be in place some time next year.
“I suspect that there will be a lot of back-and-forth to try to refine the language,” he said “With luck, maybe at the beginning of next year, we’ll have a revised fire code that can take back some of the roof we lost.”
New Hampshire’s Department of Energy has requested a $70 million federal grant to expand community solar programs for low-income residents, an infusion of funds that supporters said could lower energy bills, accelerate decarbonization, and perhaps even catalyze the development of much-needed affordable housing.
“It’s just going to be life-changing for the communities we do this with,” said Jeannie Oliver, a senior director at the New Hampshire Community Loan Fund, which partnered with the state on the proposal.
The request is part of the Environmental Protection Agency’s Solar for All competitive grant program, created under the umbrella of the 2022 Inflation Reduction Act. The goal of the $7 billion program is to increase access to solar for people living in low-income and disadvantaged communities. Up to 60 grants will be awarded.
Community solar is a model in which energy consumers own a stake in or subscribe to a share of output from a solar development. They then receive credits for a portion of the power sold back to the grid, offsetting their utility bill. Community solar is often considered an option for consumers who can’t or don’t want to install solar on their own home, but who still want to participate in the environmental or financial benefits of renewable energy.
New Hampshire authorized community solar in 2013, but it hasn’t gotten much traction. In the state, larger, non-municipal solar projects are only credited for generation on projects up to 1 megawatt in capacity. At that size, however, the finances just don’t work for developers, said Sam Evans-Brown, executive director of the nonprofit Clean Energy New Hampshire. It’s not until an array reaches around 3 megawatts – with net metering – that the economics start to make sense.
Reaching lower-income residents with community solar is even trickier. There are no easily available lists of what households qualify as low or moderate income, so acquiring customers can be prohibitively difficult.
An influx of federal money could change that equation. The grant money would be used to expand the existing program and to create new ones targeting affordable housing and resident-owned manufactured housing communities. The proposal calls for funding to be split between the state energy department, the New Hampshire Community Loan Fund, and New Hampshire Housing.
If the grant is awarded, these partnerships will be key to maximizing the impact the funds can have on low- and moderate-income residents, said Joshua Elliott, director of the division of policy and programs at the New Hampshire Department of Energy.
“It made sense to leverage existing relationships,” he said. “We thought meeting people where they are rather than having them come to us whenever possible would make for an attractive proposal.”
The portion of the money going to the state energy department would be used to expand the existing program for low-to-moderate-income community solar. The program will fund some of the project if a majority of the power generated benefits low-income households and up to 100% of a new development if at least 80% of the participating households qualify as low-income.
The state program has awarded $1 million each of the last two years. Last year, it funded four developments with a total of 61 households participating. More money could help both by funding more projects, and making it easier for potential developers to plan, Elliott said.
“Having additional funding available consistently helps these organizations as they are trying to sketch out a project and figure out if it works,” Elliott said.
The Community Loan Fund’s portion would be used to help resident-owned manufactured home communities build solar arrays to service residents. A resident-owned community is a manufactured home park in which the residents have come together as in a cooperative to buy the land on which their homes sit, creating for themselves a more stable housing future.
The community loan fund has been working on developing community solar with these groups since 2018 when it led the creation of an array in the western New Hampshire city of Lebanon. Today, they have four projects either in operation or under construction.
“The reason that has been slow is that the financial barriers to low income solar are pretty immense,” said Oliver, who leads the organization’s resident-owned communities program. “What the Solar for All program would do is really help us scale up.”
The remaining money would flow through New Hampshire Housing, a public corporation that promotes housing affordability and access throughout the state. It already works closely with the state’s 18 public housing authorities, so it has relationships and experience with the low-income population the funded programs would be targeting.
Much of the New Hampshire Housing money would be used to connect renters in multifamily buildings with community solar.
Traditionally, bringing solar to renters has been difficult because of what is often called the split incentive – if tenants pay their own electricity bills, landlords have little motivation to spend money on solar panels when the renters will reap the financial benefits. The grant proposal would encourage landlords to take over tenants’ utility bills, and roll the cost into the rent, reflecting the discounts community solar would create.
“The Solar for All proposal takes a huge step in moving things in a more positive direction,” Evans-Brown said. “It’s giving landlords a carrot to figure this out.”
The EPA should be announcing the grant recipients in March 2024 and distributing the funds in July, Evans-Brown said. Solar projects using the money should start popping up by 2025.
If New Hampshire receives the grant, it could be transformative, supporters said, by both accelerating the state’s decarbonization efforts and making a significant difference for financially struggling households. In concert with other federal programs pouring money into home electrification and energy efficiency, the Solar for All funds could jumpstart significant and much-needed growth in green housing development, Evans-Brown said.
“The thing I am excited about is this influx of money is going to result in a large amount of multifamily, sustainable housing getting built that’s going to be really affordable,” Evans-Brown said. “I am really optimistic.”
A pair of community microgrid projects in Massachusetts are already helping to inspire similar projects in the state before construction has even begun.
The city of Chelsea and Boston’s Chinatown neighborhood are each developing projects that supporters hope can become powerful case studies for the potential of microgrids to increase resilience and create other benefits for residents.
Chelsea has ordered equipment for a microgrid that will connect municipal facilities, and is targeting a construction date in the second half of 2024. Chinatown is finalizing plans for a system to provide solar power and backup energy storage to a 200-unit affordable housing apartment building.
“We do see this serving as a model for the nation if we can pull it off,” said Alexander Train, Chelsea’s director of housing and community development.
The list of communities considering whether to follow their lead includes Cambridge, Lynn, and Milton.
In the broadest sense, microgrids are small-scale energy systems in which power is produced, distributed, and consumed, typically all within a self-contained area such as a college campus or hospital complex. Microgrids can often operate independently from the main grid, providing continuous power, even in case of disruptions to the regional supply, and can help cut energy costs.
Though they come in all configurations and sizes, microgrids have historically generated power with fossil fuels. But as the transition to sustainable energy accelerates, more organizations are looking at ways to combine renewable energy and battery storage to create cleaner microgrids.
Several years ago, semi-retired engineer David Dayton saw in this evolving model an opportunity to improve the health and safety of environmental justice communities — areas that bear a disproportionate environmental burden and are often home to many low-income residents and people of color.
Solar panels could cut energy costs, while batteries could provide power to critical facilities, such as municipal buildings, community centers, and senior housing, in case of power outages. Batteries could also be used to sell power back to the main grid to help pay for the system.
To get this vision off the ground, Dayton reached out to organizations he was familiar with, including the Green Justice Coalition and private companies Peregrine Energy Group and Synapse Energy Economics. The participants identified Chelsea and Chinatown as good candidates for a community microgrid. Both communities have high populations of immigrants and people of color, and both have median household incomes well below the average for the area. And they are vulnerable to climate change impacts including flooding and dangerous temperatures as the result of the urban heat island effect.
In 2018, the group Dayton assembled acquired grants from the Massachusetts Clean Energy Center for feasibility studies in the two communities.
The model developed during this process proposes to create the nation’s first community-owned “virtual microgrid.” The designs use cloud-based software to connect solar installations and batteries in locations that aren’t necessarily adjacent to each other, a departure from the conventional model in which the components of the microgrid are physically connected. This approach allows more flexibility in deciding what facilities can participate, particularly helpful when a community would like to include vital facilities that are geographically spread out.
“It’s a microgrid without borders,” Dayton said. “We can add any building to the network at any time — they don’t have to be contiguous.”
Today, the first two projects are making progress. In Chelsea, a design has been created that includes 500 kilowatt-hour batteries at both the police station and city hall, as well as a 400 kilowatt solar array at the department of public works facility. Plans are already in the works to start gathering more community input by the end of the year about expanding the system to other essential locations such as senior housing, churches, or health care centers.
“We want this system to proliferate as fast as we possibly can,” Train said.
In Chinatown, project developers have had to scale back their initial ambitions of connecting several multifamily housing buildings. They are now focused on serving Masspike Towers, a privately owned development of 190 affordable units, before expanding. The plan, still being finalized, is to build a solar installation and share the savings across all residents in a model similar to community solar. Battery storage will help keep common areas powered and extensive energy efficiency measures will reduce overall consumption.
“Our goal is to bring the benefits of clean energy and decarbonization incentives to a low-income urban community that has historically missed out on a lot of those benefits,” said Lydia Lowe, executive director of the Chinatown Community Land Trust, one of the community partners in the project
As work has progressed in Chelsea and Chinatown, other communities have started to wonder about the possibilities. And the two ongoing projects are offering valuable lessons about how to make community microgrids work.
Financing has emerged as a potential major sticking point. In Chelsea, where the city will own the system, the city council voted to provide $4 million in funding to the project. That money – along with federal support, the savings created by solar generation, and the revenue from selling stored powerback onto the grid – is enough to get the project up and running. Building on municipal sites that each have only one tenant also helps simplify the design and logistics.
In Chinatown, however, the city is providing some funding, but not enough to cover the entire project, making it more challenging to structure the financing in a way that is affordable yet satisfies potential investors.
“It is a little bit tougher. We were able to get the city on board in Chelsea,” said Sari Kayyali, microgrid manager for the two projects. “We’ve been working with them to find a workable scope that can pay back investors in a timely manner.”
The work thus far has also highlighted the importance of the community-led ethos that distinguishes the approach from other microgrids, which are generally privately owned and operated. From the beginning, Dayton and other planners felt it was essential to the underlying mission of environmental justice that community members have a lot of say in determining the goals, design, and operations of these community microgrids. In both Chelsea and Chinatown, the planners divided the $75,000 each community received, dedicating half to engineering and technical planning, and giving the other half to community organizations to conduct outreach and education.
In Chelsea, these efforts were key to securing the microrid’s future: The strong support of the community helped sway a few skeptical city councilors to vote for funding for the project, said Elena González, technical director of Climable, a nonprofit that has conducted community engagement and outreach for Chelsea, Chinatown, and Cambridge.
But the importance of community involvement is far more than just strategic, supporters said.
“These microgrid projects empower communities and give them a role in the way that energy development happens,” González said. “This is something that has a huge impact in people’s lives and it is important that the community leads.”
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