Solar Neighborhood Financing Mechanisms and Business Models

Abstract

Since solar neighborhoods often span multiple land use spaces, local community members are key stakeholders in these developments. As such, involving the community can help promote and accelerate the investment and dissemination of these developments. In doing so, certain solar neighborhood business models can include individuals who otherwise cannot gain direct benefits from solar projects due to not having the ability to purchase their own solar equipment. Within the framework of IEA SHC Task 63, business models were developed to be flexible in terms of who sponsors the project versus who ultimately owns/hosts the completed development. This allows for models where community members can be involved in some way - either as sponsors of the project or as part of a customer base leasing or subscribing to the project's output.