Many renewable energy lovers are not in a position to have a solar system installed on their home, whether it’s because they live in an apartment building, have a shaded roof or simply can’t afford it.
According to GTM Research’s report, around one fifth of the market that is suitable for solar power systems will have solar installed on their rooftop by 2020, and the installation rate will not be letting up.
It is clear the future holds a saturated market. But what about the people who aren’t in the addressable market?
Community solar holds the key that allows these households to participate in utilizing renewable energy, and potentially, get solar without a roof.
Community solar involves a number of utility ratepayers to collaborate and purchase electricity together from a solar PV project. The group subscribes to the power and pay the monthly fee which is shown on the electricity bill.
By doing this they are funding solar projects and can be proud of supporting renewable and clean energy. In addition, they can also take money off their personal home power bills. There you have it! Solar without a roof.
More about community solar
This can work in a few various ways. Generally, a third-party solar manufacturer will contract the utility and sell them electricity, which eliminate the need to find subscribers.
Alternatively, a utility can run a subscriber program, or own the project themselves. Subscribers rarely own the project, but it can happen.
The market for community solar is currently tiny. Only 74 megawatts were installed in May 2015 in the US, in comparison to 8,100 megwatts of total solar PV installed.
However, the pipeline holds almost 1 gigwatt already.
GTM Research predicts a compound annual growth rate of 59 per cent between 2014 and 2020.
They also indicate that the percentage of community solar within total PV power is also growing, reaching close to five per cent by 2020.
24 states in the US have at least one community solar project underway, and 12 states have two or more. 10 more have legislation involving community solar on the books, and another 10 have legislation being considered.
Developers find community solar projects an attractive option as they can “incur commercial solar costs [thanks to the larger scale of these projects] while competing against residential retail electricity rates.”
Subscribers are also easier to find in comparison with rooftop solar customers, thanks to a lack of credit issues and restricted siting.
The rates of community solar are still above those of average utility power rates in some areas, although as the market matures and solar prices keep falling, it’s likely this will change.
If you love renewable energy and want solar without a roof, get in contact with your legislators and your electricity provider. A community solar program could already be underway in your area, or you could initiate it.
Photo courtesy of Mountain/ \Ash