Community Solar and Energy Equity
By Jordan Lee, B Corp Intern
In the United States, the wealthiest country in the world, one in three households were energy insecure in 2015, meaning they faced challenges paying their energy bills or sustaining adequate heating and cooling in their homes. The current global pandemic and historically high unemployment has only worsened the problem. With climate change creating more extreme temperatures, energy insecurity and lack of access to air conditioning or heating can have serious health consequences. People are having to choose between paying their energy bills and paying rent or paying for food.
We also can’t ignore the fact that racism plays a factor in access to energy. One study that examined household energy burdens (the percentage of household income spent on energy bills) found significant racial disparities. Compared to non-Hispanic White households, the median energy burden for Black households is 43% higher, for Hispanic households 20% higher, and for Native American households, 45% higher. Energy access is another way systemic racism affects Black, Indigenous, and other people of color.
One sector that has the potential to make energy more accessible is Community Solar. Environmentalists have long advocated for solar energy as a cleaner alternative to fossil fuels. People who make the switch to solar on average offset ten hot air balloons worth of carbon dioxide. Moreover, the solar industry has won over clients with guarantees of cost savings on energy in the long-term. However, the requirements of traditional rooftop solar – steep installation fees and a roof or open space conducive to solar energy – have barred access to many households, particularly low-income households that stand to gain the most from the cost saving benefits of solar.
Hopefully that’s changing with the growing number of organizations across the country expanding access to solar power through a model known as community solar or shared solar. Community solar developers build large “solar farms” that feed into the general electricity grid. People sign up for a share of the solar farm and receive credits on their energy bills for electricity generated by their share of the solar farm.
There are 40 states with at least one community solar project on-line, with 2,056 cumulative megawatts installed through 2019. Community Solar is projected to add as much as 3.4 gigawatts over the next 5 years, enough to power roughly 650,000 homes.
Despite community solar’s promising potential growth, a 2018 study found that less than 45 percent of U.S. community solar projects surveyed have participation from low-income households. Of projects that did include low-income households, only about 5 percent involved a sizable share of more than 10 percent. So what can community solar organizations do to make it more accessible? A lot of it has to do with the subscription model.
Neighborhood Sun is a community solar company in Maryland that offers all the benefits of locally produced, affordable clean energy without any panels to install or upfront fees.
“One of the larger missions we focus on is supporting low and moderate-income communities,” says Emily Tokarowski, the Marketing and Operations Director of Neighborhood Sun.
Neighborhood Sun’s model makes it as easy as possible to switch to clean energy. On their website they promise:
- No solar panels go on your roof or property.
- Keep the same electric utility provider.
- Guaranteed savings on your electricity bill every month.
- Keep your wind or other green-energy contract/supplier.
- Additional benefits for underserved communities.
- No fees to participate!
“Yes it sounds too good to be true, but that’s really what we’re advocating for,” says Tokarowski.
So how exactly does it work? When someone subscribes to community solar through
Neighborhood Sun, they receive a share of the solar farm intended to cover their energy use based on the previous 12 months. In Maryland, utility companies pay participants for the energy produced by their share of the solar farm. The money shows up in the form of a credit (or cost deduction) on the subscriber’s utility bill. Subscribers then pay Neighborhood Sun for the solar energy at a 5 percent discounted rate than what they would have paid the utility. Low- or moderate-income subscribers can receive even more of a discount – up to 30 percent, thanks to government policies. The dollars saved month-to-month can add up to hundreds of dollars per year.
Business and government must all come together to help build an inclusive clean energy economy. Tokarowski stressed the importance for states putting together community solar legislation to allow greater discounts and advantages for households that classify as low or moderate income and eliminating red tape for low and moderate income subscribers, who currently must provide proof of income to receive the discounted rate. In addition, because community solar is localized, government and community solar projects have the potential to create solar jobs training programs for people in the communities in which they are serving.
Centering community is really important to building an inclusive energy economy. As Tokarowski stated, “Neighborhood sun really does want everyone to be a part of the solution, no matter your background, status, income, demographic, whatever, you can contribute to cleaning our air, cleaning our environment, without having to put forward any extra cost, and in fact, we want to help you actually save money in the process….And build a community around it. We want to support one another completely in this endeavor. This doesn’t have to be a challenge that we’re fighting alone.”
About the author:
Jordan Lee, B Corp Intern
Jordan grew up in Bethesda and graduated from Carleton College in Minnesota with a degree in Sociology/Anthropology and a minor in Women’s and Gender Studies. Her year in Myanmar working for a local investment group put climate change into a global perspective and sparked her interest in sustainability. She is passionate about integrating sustainability into business practices and is excited to join the Bethesda Green team!
