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The past six months have seen a spike in anxiety-provoking headlines about electricity demand in the US. Even the Republican nominee for president, Donald J. Trump, has gotten the message. Of course, building new gas power plants is one widely touted solution. Nuclear energy fans also want a piece of the pie. However, a quick look at the community solar movement demonstrates that clean energy solutions are in abundance.
So Much Electricity…From Community Solar
CleanTechnica’s Jennifer Sensiba was among those drawing attention to Trump’s take on electricity demand over the weekend. She pointed out that he was speaking at the 2024 Bitcoin Conference in Nashville, Tennessee, where the attendees were presumably focused like a thousand points of light on the looming electricity crisis whether or not one actually exists.
“We will be creating so much electricity that you’ll be saying, please, please, president, we don’t want any more electricity. We can’t stand it. You’ll be begging me. No more electricity, sir. We have enough. We have enough,” Trump said in a transcription and video clip provided by the political news organization MeidasTouch via social media.
Bitcoin or not, electricity demand is up in the US. The spurt in demand would have been unremarkable back in the 20th century, given the close link between economic activity and power generation under a fossil energy scenario. The 21st century is a different kettle of fish. The energy efficiency movement was been among the factors putting a damper on demand in the earlier 2000s. However, now that the electrification movement is in full swing and economic activity is roaring along, once again the race is on between electricity demand and power generation.
That’s where the community solar movement comes in. The community solar sector still accounts for a vanishingly small amount of solar industry activity in the US, but it is poised to step in where other clean energy projects will not or cannot venture.
“Over the past 10 years, community solar has experienced an average annual growth rate of 80%, reaching approximately 6.49 GW at the end of 2023,” noted the commercial real estate services firm CBRE in a report earlier this year.
“Looking ahead, community solar is forecast to double by 2028, reaching 14 GW,” CBRE added.
That’s still a relatively small amount compared to the 200-plus gigawatts of solar capacity expected by the end of this year, but neither is it peanuts.
Community Solar Meets Agrivoltaics
Community solar is a concept that emerged around 2010. It’s a clean energy solution for ratepayers who want zero emission electricity but don’t have the opportunity or desire to install solar panels on their own property. The solar developer finds some local acreage to construct a solar array, and nearby ratepayers can subscribe to it.
Ratepayers still get their electricity from a local distribution grid that can include other sources. However, they can take credit for supporting the addition of more clean kilowatts to their local energy profile.
In the early days of community solar, ratepayers had to shell out extra bucks for clean kilowatts, due to the relatively high cost of solar technology. Nowadays the script has flipped. Ratepayers expect to save money on their electricity bills through community projects.
The money-saving opportunity is one important driver of the community solar trend. New money-making opportunities for farmers and other local businesses are also beginning to emerge through a connection with the agrivoltaics movement (see more agrivoltaic background here).
That agrivoltaic connection is still in the early stages, but the Biden-Harris administration is already counting on agrivoltaics to help overcome resistance to rural solar development. Combining agrivoltaics withe the money-saving potential of community solar would also help neutralize the national-level campaign being waged against rural solar development by groups with links to fossil energy stakeholders.
The Unstoppable Force Of Community Solar
Farmland is not the only opportunity for new community solar development. Circling back to that CBRE report, the commercial real estate industry is another area ripe with opportunity for expansion.
“Community solar installations generally allow a solar developer and real estate owner to maximize the PV system size, further increasing the economic opportunity for the property owner,” CBRE observes. “Community solar enables these property owners to generate renewable energy while also creating additional income streams through underutilized spaces.”
CBRE notes that solar projects can also provide additional benefits to a commercial property, by supporting more resilience and reliability in the local grid.
In an interesting twist, CBRE makes the case for community solar on commercial property as a relatively hassle-free, beneficial alternative for owners and their tenants, compared to installing on-site solar for exclusive use on the property. “With community solar, the clean power generated is put into the electricity grid and multiple community members are able to purchase the energy, often at a discount, without needing site control,” CBRE explains.
“Community solar projects promote sustainability by increasing the adoption of renewable energy, reducing greenhouse gas (GHG) emissions, and decreasing dependence on fossil fuels—a leading contributor to climate change,” the firm emphasizes.
Heads Explode As 2022 Inflation Reduction Act Kicks In
As for where community solar developers expect to get all the new solar panels they’ll need, stakeholders are already leveraging the 2022 Inflation Reduction Act to scale up rapidly.
Last year, the US solar technology firm Heliene inked a massive five-year, 1.5 gigawatt solar module deal with the leading community solar developer Nexamp, which expects to get enough solar panels out of the arrangement to construct 400 new projects around the US.
“This partnership wouldn’t be possible without the Inflation Reduction Act, and is proof that this historic piece of legislation is continuing to encourage renewable energy production and help drive the energy transition,” emphasized Nexamp CEO and Chairman Zaid Ashai in a press statement.
In a press release dated August 31, 2023, Heliene also credited the IRA with enabling it to expand its solar module factory in Minnesota. “Heliene expanded its facility in November 2022 and has additional expansions planned for September 2023 to increase manufacturing capacity of domestic solar modules, which was made possible by the Inflation Reduction Act through the extension and expansion of investment tax credits for clean energy resources,” the company explained.
If you’re wondering where all the solar cells for all those new solar modules will come from, that’s a good question. Heliene disclosed the answer last week, when it announced a new solar cell manufacturing joint venture with a leading Indian firm Premier Energies.
The new venture builds on a longstanding relationship between the two companies. They plan to set up shop in the US, most likely in the area of Heliene’s existing operations in Minnesota.
“With this joint venture and new cell plant, the Companies are investing in the growing U.S. solar industry and capitalizing on important incentives and tax credits for domestic clean energy manufacturing introduced under the Inflation Reduction Act (IRA) of 2022,” Heliene explains.
The two companies expect an annual output an annual capacity of 1 gigawatt, which should be more than enough to accommodate Nexamp and any other community solar developer who happens along.
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Photo (cropped): So much electricity! Solar industry stakeholders are prepping for the next wave of community solar development spurred by lower costs, agrivoltaic opportunities, and financial benefits for property owners (courtesy of Heliene).
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