In the direct ownership model, subscribers sign an ownership agreement and make an up-front payment to purchase solar panels from the utility or a third-party developer. As in the third-party ownership model, a third party or the utility is responsible for constructing and operating the solar plant and, in some cases, providing RECs to the subscribers. If the plant is operated by a third party, this operator provides membership information to the utility to facilitate subscriber bill crediting. The utility in turn provides electricity to the subscribers of the system, and subscribers receive a credit against their utility bill based on their panels’ energy production.
PROCUREMENT GUIDANCE MENU
- Overview
- Developing a Strategy
- Community Solar
- Understand Ownership Models
- Understand Your Subscription Models
- Understand Your Regulatory Context
- Select Your City’s Roles
- Plan Your Project
- Becoming a Subscriber
- Learn What Percentage of a Project Your City Can Subscribe To, Given Your Local Regulations
- Evaluate the Various Subscription Projects/Models Available to You
- Evaluate Ways to Mitigate Subscription Contract Risks
- Support Local Economic Development and Job Creation
- Enable Clean Energy Access to Low-Income Populations
- Reduce Project Costs to Capture Economic Savings for the City
- Becoming a Host
- Understand Regulations for Community Solar Siting
- Screen City Properties for Potential Solar Development and Weigh the Costs and Benefits of Using a Municipal Property to Site Your Community Solar Project
- Consider Working with a Solar Siting Consultant to Ensure Site Suitability
- Assess the Value of Candidate Sites and Consider Issuing a RFI or RFP to Understand Lease and/or Project Pricing for Your City-Owned Site(s)
- Screen for Interconnection
- Help Facilitate Permitting and Zoning Processes
- Support Local Economic Development and Job Creation
- Enable Clean Energy Access to Low-Income Populations
- Reduce project costs to capture economic savings for the city
- Leverage Value from Existing Assets (e.g., brownfields, airports, and parking structures)
- Becoming a Facilitator
- Leverage Existing City Programs and Departments to Improve Community Solar Project(s)
- Conduct Outreach and Educate the Community About Community Solar
- Facilitate Partnerships or Coordinate Project Research, Development, and Aggregation
- Enable Clean Energy Access to Low-Income Populations
- Reduce Project Costs to Capture Economic Savings for the City
- Leverage Value from Existing Assets
- Becoming a Project Manager
- Conduct the Site Selection
- Identify Your Subscription/Ownership Model
- Develop Your Subscription Management Strategy
- Solicit Bids and Select a Project Developer
- Project and Subscription Management
- Support Local Economic Development and Job Creation
- Enable Clean Energy Access to Low-Income Populations
- Reduce Project Costs to Capture Economic Savings for the City
- Leverage Value from Existing Assets
- Create a Plan of Action
- Becoming a Subscriber
- Monitor and Share
- On-Site Solar
- Off-Site Physical PPA
- Virtual PPA
- Green Tariff
- Funding Guidance
- Large-Scale Renewables Aggregation
- Solarize
Procurement Guidance Menu
Community Solar
Direct Ownership
Low-Income Recruitment
Of the three models, direct ownership is the least likely to attract low-income subscribers. Purchasing the panels requires a significant capital investment, which low-income households may not be able to afford. Financing programs can help address this issue, but even then, low-income households may find it difficult to access these programs. Meanwhile, low-income households are less likely to have a sufficient tax burden to fully capitalize on the federal investment tax credit.