California is finally unlocking community solar for the masses

California leads the nation in rooftop photo voltaic installations by a lengthy shot. Nevertheless it has by no means managed to craft a viable neighborhood photo voltaic marketplace for individuals who can’t put panels on their very own roofs. That’s been a evident oversight in a state the place median dwelling costs in main cities have soared above $1 million, pushing dwelling possession out of attain for tens of millions of residents.

However a late-summer legislative breakthrough might unleash neighborhood photo voltaic statewide within the subsequent couple of years. AB 2316 handed the legislature by a broad majority final week with widespread help from curiosity teams — not simply photo voltaic builders, however environmental justice organizations, client advocates, the homebuilding business and utility employees. By studying from successes and shortcomings in different states’ neighborhood photo voltaic packages, California designed its model to profit clients, builders, employees and the general energy system on the similar time.

In doing so, neighborhood photo voltaic advocates sidestepped ongoing and contentious debates on how you can correctly compensate house owners of rooftop photo voltaic. And so they averted critiques of unfair subsidies or value shifts by guaranteeing these tasks are, by definition, a whole lot for everybody. 

The commonest neighborhood photo voltaic mannequin has non-public builders construct tasks that people can subscribe to. Because the tasks generate solar energy and feed it into the grid, subscribers earn credit which are utilized to their electrical payments. The subscription charges needs to be decrease than the worth of the credit, so subscribers come out forward financially. 

To make this work, insurance policies are wanted that inform utilities to credit score clients’ vitality payments for energy produced elsewhere. In some states, these guidelines set a sure worth that utilities should pay for neighborhood photo voltaic manufacturing. The place to set that compensation turns into a contentious query.

In California, neighborhood photo voltaic compensation shall be pegged to the precise worth of electrical energy on the time it’s delivered to the grid. Since California is awash in photo voltaic within the sunny hours however desperately in want of energy throughout night hours, market forces will push neighborhood photo voltaic tasks to be constructed with batteries, to permit tasks to promote their energy when it could command one of the best worth.

“The worth of the invoice credit score goes to be pushed by the worth of the facility — and the worth of the facility varies throughout the day, throughout the month, throughout the 12 months,” mentioned Richard Caperton, vice chairman for regulatory affairs and market improvement at Arcadia, the cleantech unicorn that manages neighborhood photo voltaic subscriptions throughout 15 states. ​“That appears intuitive, however that’s not the best way it really works all over the place.” 

Governor Gavin Newsom (D) nonetheless must signal the invoice to make it a actuality. If he does, he might usher in a new marketplace for doubtlessly lots of of megawatts of photo voltaic manufacturing that shall be saved in batteries for supply when California’s grid desperately wants it. The shoppers who get monetary savings on their payments would fund an growth of unpolluted, dispatchable energy that makes the grid extra dependable for everybody.

Neighborhood photo voltaic designed for fairness and grid worth

For years, California owners have been capable of purchase or lease their very own photo voltaic panels and reap the advantages. However that was not doable for tens of millions of renters, nor condominium dwellers or individuals who personal a dwelling that occurs to be shaded by, say, a majestic redwood grove. Individuals in these teams might join a clear vitality possibility via their energy supplier, however that sometimes prices additional as a substitute of saving cash.

The issue wasn’t that California lacked a neighborhood photo voltaic coverage; it simply didn’t have one that actually labored.

“We had some well-intentioned payments up to now that simply haven’t performed out the best way that they have been meant to,” mentioned Derek Chernow, western regional director for the Coalition for Neighborhood Photo voltaic Entry. ​“It simply didn’t pencil out for corporations to come back in and go all-in on neighborhood photo voltaic.”

Now, assuming Newsom approves, a new possibility shall be obtainable to everybody within the territories of the state’s three huge investor-owned utilities — Pacific Fuel & Electrical, Southern California Edison and San Diego Fuel & Electrical. 

California’s new program will transcend typical neighborhood photo voltaic design by stipulating necessities to serve fairness and just-transition targets: