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Community solar could be an important tool to lower electricity bills and bring clean energy to low-income communities. But even as federal incentives aim to lower the cost of building community solar arrays, big issues still stand in the way, advocates tell the Energy News Network.
When a community solar array is built, people in the area can sign up to receive electricity that’s often cleaner and cheaper than what they’d get from their utility. It’s ideal for residents who can’t put solar on their own roofs because of installation costs or other reasons.
Incentives introduced under the Inflation Reduction Act aim to boost community solar, with extra tax credits slated for arrays that benefit low-income people and areas. But it’s not easy to qualify a household as low-income. The process varies from state to state, but it often requires that people provide tax returns and other documentation to prove their income — something that could make customers reluctant to buy in.
Federal law does try to tackle this problem by letting LIHEAP eligibility count as a measure of eligibility for low-income community solar bonuses. The low-income heating assistance program has been around for decades, so it’s more familiar to many people. States can also designate whole areas as low-income to smooth the process.
Read more about the challenges holding up community solar, plus some solutions that are rolling out, at the Energy News Network.
More clean energy news
🚌 New school: The U.S. EPA announces nearly $1 billion in grants for schools to replace diesel buses with electric and low-emissions vehicles, with a vast majority going to schools in low-income, rural and tribal communities. (Guardian)
⚡ The grid’s big year: 2024 could be a make-or-break year for lawmakers, regulators and utilities to push through federal reforms aimed at making it quicker and easier to expand the power grid. (Canary Media)
💰 What’s stopping decarbonization: Upfront cost is the biggest barrier keeping people from making home energy upgrades like swapping out gas stoves, while lowering energy costs and environmental impact is a top motivator, a survey finds. (Canary Media)
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🔋 The sunshine neighborhood: Every residence in an 86-home Florida development comes with solar panels and a home battery, ensuring none of its homeowners pay electric bills and offering a model for sustainable building. (Washington Post)
☀️ Solar tax swap: First Solar enters two deals to sell $700 million worth of federal tax credits, a first-of-its-kind transaction that will let the U.S. solar panel manufacturer quickly bring in money from domestic production incentives it could otherwise only use to trim its tax bill. (Canary Media)
🚙 Big cars, big emissions: Several automakers’ average fuel efficiency dropped from 2017 to 2022, largely because of the growing popularity of SUVs and pickup trucks. (Washington Post)
🔌 The EV incentives list is here: The federal government published a list of electric vehicles that qualify for $7,500 and $3,750 incentives, which can now be redeemed at thousands of dealerships. (Inside Climate News)
🏗️ Gas bans meet their end: A federal appeals court reaffirms its decision to strike down Berkeley, California’s ban on gas hookups in new buildings, invalidating other local gas bans in the 9th Circuit’s territory of 11 Western states. (Grist)
🥾 Electrifying tourism: An Alaska carbon offset program uses tourists’ donations to purchase electric heat pumps for local residents. (Grist)
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