How Local Governments Meet Their Low And Moderate-Income Community Solar Challenges
Community solar projects, which provide subscribers with access to credits and rewards, can be a powerful force in addressing both climate change and inequality. While helping local governments meet their climate goals, they can provide significant benefits to low- and low-income (LMI) communities, including lower Waco Energy Plans energy bills and freight for subscribers, benefits taxes, jobs, and access to solar energy for the underprivileged. install solar panels on the roof. But local governments in the United States often face challenges limiting their ability to pursue community solar projects. Limited staff capacity and resources can limit their ability to develop and support important projects, programs, and policies. High enrollment rates, low investment opportunities, and high costs can make it difficult for local governments to motivate developers to build homes. In some states, the lack of enabling legislation presents significant obstacles for local governments to even begin. Despite these challenges, LMI customers participating in community solar are growing steadily and recently announced federal programs will provide further impetus (detail of LMI community composition and families varies from program to program). In July 2022, the Department of Energy (DOE) announced a six-state pilot of the Community Solar Subscription Platform, which will connect community solar projects to families participating in the Home Energy Assistance Program to Low Income ( LIHEAP) and other government assistance programs. . . DOE also announced the Sunny Awards for Equitable Community Solar, which will recognize and reward programs and projects that provide significant benefits to participants in the LMI community.
Perhaps most importantly, the Cut Inflation Act includes significant tax incentives for a variety of solar projects, including projects that affect low-income communities and community solar projects that provide economic benefits to residents. . Solar projects under five megawatts located in low-income communities or in mainland India are eligible for a 10% investment credit (ITC) in addition to the basic ITC. And solar projects in public or affordable housing benefiting residents, or projects where at least half of the revenue goes to low- or middle-income families, will receive funding. 20% ITC. With the support of existing and new federal programs and policies, communities now have the opportunity to help their low-income residents benefit from community solar energy. Local governments can take a number of steps to build support, improve access, and expand the many benefits associated with community solar energy. Join LMI’s active community members
Collaboration and open dialogue with community members and organizations are essential to the development of successful community solar programs, policies, and projects. But IMT residents don’t have the time or resources to do the necessary work on these processes themselves. Therefore, communities work best when leaders take the time and resources to engage stakeholders, reward the time and effort of those involved, and incorporate feedback into project decisions.
There are many best practices for collaborating with communities around solar energy. The Energy Trust of Oregon has implemented a strategy to engage in community capacity building and partnership building to expand access to solar energy for LMI households. The plan includes providing incentives to support community and non-profit participation in the LMI solar intervention hearing period. Energy Trust of Oregon has also provided direct grants to community members to help them develop their own LMI solar projects, including community solar projects that benefit local LMI families.
