Community Solar for All: Key Findings for State Energy Offices and State LIHEAP Agencies from the Inclusive Shared Solar Initiative
Despite the significant potential for community solar to reduce energy burdens and costs, it has largely remained out of reach for low-income households. While the U.S. community solar market has grown considerably over the last decade, as of December 2022 low to moderate-income (LMI) community solar represented just 2% of the overall market. Effective community solar policies and program decisions can help address this dynamic. State laws, policies, and program rules are critical to the development of community solar programs and projects that are affordable for and cater to the needs of LMI utility customers, who often face disproportionately high energy costs relative to their incomes. This report explores how two sets of state agencies in particular — State and Territory Energy Offices and State Low Income Home Energy Assistance Program (LIHEAP) Agencies —can help to streamline and prioritize the delivery of affordable and accessible shared solar. State Energy Offices are often involved in community solar policy and program design from inception, whether by supporting the enactment of enabling legislation or informing the development of program rules and regulations. State Energy Offices may also be charged with administering or overseeing the implementation of statewide community solar programs and, through the U.S. State Energy Program and other sources of funding, can provide resources and loans that enhance community, developer, and utility confidence and capacity to build, host, and derive value from projects. Relatedly, as implementers of federal LIHEAP block grants, State LIHEAP Agencies have a deep understanding of the needs of lower-income households and can help inform the design and delivery of community solar programs.