In communities across the United States, people are seeking alternatives to conventional energy sources. Whether they aim to increase energy independence, hedge against rising fuel costs, cut carbon emissions, or provide jobs, people are looking to community-scale renewable energy projects for solutions. Falling costs and creative new financing models have made solar projects-including community shared solar projects-more financially feasible. This guide is a resource for those who want to develop community shared solar projects, from community organizers or solar energy advocates to government officials or utility managers. By exploring the range of incentives and policies while providing examples of operational community shared solar projects, this guide will help communities plan and implement successful energy projects. In addition, by highlighting some policy best practices, this guide suggests changes in the regulatory landscape that could significantly boost community shared solar installations across the nation. HOW TO USE THIS GUIDE The information in this guide is organized around three sponsorship models: utility projects, special purpose entity projects, and nonprofit projects. The guide begins with examples of the three project sponsorship models, discussing the legal and financial implications of each model. This is followed by a discussion of state policies that encourage community shared solar. The guide then reviews some of the tax and financing issues that impact community shared solar projects. While the guide cannot offer legal or tax advice, the authors hope to provide an outline of the legal hurdles that every project organizer should consider. Finally, Section 6, Getting Started provides readers with practical tools and tips for planning their own projects. The Appendices provide a more detailed comparison of business structures suitable for special purpose entities pursuing solar projects and the Interstate Renewable Energy Council's Model Community Renewables Program Rules. As with the first version of this guide, the case studies have been provided by the program sponsors or developers and have not been independently verified by the authors or by NREL. Please contact the program sponsor for further information. This guide cannot possibly describe all available incentives or cite all the examples of community shared solar efforts nationwide. For information regarding the most recent developments, see Section 7, Resources.
In communities across the United States, people are seeking alternatives to conventional energy sources. Whether they aim to increase energy independence, hedge against rising fuel costs, cut carbon emissions, or provide local jobs, they are looking to community-scale renewable energy projects for solutions. Advances in solar technology, an increase in federal and state tax incentives, and creative new financing models have made solar projects including community solar projects, more financially feasible. This guide is designed as a resource for those who want to develop community solar projects, from community organizers or solar energy advocates to government officials or utility managers. By exploring the range of incentives and policies while providing examples of operational community solar projects, this guide will help communities to plan and implement successful local energy projects. In addition, by highlighting some of the policy best practices, this guide suggests changes in the regulatory landscape that could significantly boost community solar installations across the country. HOW TO USE THIS GUIDE The information in this guide is organized around three sponsorship models: utility-sponsored projects, projects sponsored by special purpose entities-businesses formed for the purpose of producing community solar power, and non-profit sponsored projects. The guide addresses issues common to all project models, as well as issues unique to each model. The guide begins with examples of the three project sponsorship models, discussing the legal and financial implications of each model. This is followed by a discussion of some state policies that encourage community solar-ways for multiple individuals to share in the benefits of a single solar installation. The guide then reviews some of the tax and financing issues that impact community solar projects. While the guide cannot offer legal or tax advice, the authors hope to provide an outline of the legal hurdles and pitfalls that every project organizer should consider. Finally, the "Getting Started" section provides readers with practical tools and tips for planning their own project. The Appendices provide a more detailed comparison of business structures suitable for special purpose entities pursuing solar projects and the Interstate Renewable Energy Council's Model Community Renewables Program Rules. This guide cannot possibly describe all available incentives or cite all the examples of community solar efforts nationwide. To track the most recent developments, we refer the reader to resources in Section 7. WHY "COMMUNITY" SOLAR? For the purpose of this guide, Community Solar is defined as a solar-electric system that, through a voluntary program, provides power and/or financial benefit to, or is owned by, multiple community members. Community Solar advocates are driven by the recognition that the on-site solar market comprises only one part of the total market for solar energy. A 2008 study by the National Renewable Energy Laboratory found that only 22 to ...
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