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At least 19 records

Modeling, Load Profile Validation, and Assessment of Solar-Rooftop Energy Potential for Low-and-Moderate-Income Communities in the Caribbean

This document presents the modeling of load profile consumption for Low-and-Moderate-Income (LMI) communities in the Caribbean Islands, as well as an assessment of the solar-rooftop energy potential. In this work, real data, together with synthetic and electricity bill data, were collected to validate and improve the load profile models. The solar-rooftop energy potential was obtained through a National Renewable Energy Laboratory (NREL) software called the PVWatts calculator, and mathematical analysis. The analysis of rooftop solar energy potential was conducted to enable the minimum size of solar power systems to fit the energy demand in the community. The results obtained allow estimation of the capacity of the energy system for each house or an entire community.

14 SOLAR ENERGY↗

Data-Driven Understanding of Low-to-Moderate Income Customers’ Adoption and Financial Qualification in Community Solar (Final Technical Report)

When Solstice began working in the community solar industry, it quickly became clear that there was a wide disparity along race and class lines in terms of what kind of household traditional solar offerings benefited. Solstice is an organization that aligns itself to the principles of a Just Transition, or the concept that a transition to a green economy should benefit and prioritize historically marginalized groups of people. Given that low-income communities are disproportionately burdened by our current polluting fossil fuel economy, Solstice set out to investigate the root causes of the exclusion of low to moderate income (LMI) households in the community solar market. As we worked more and more with financiers, developers, and LMI households, we recognized that significant barriers to entry in a developer-owned project were credit threshold requirements. A FICO score of 750 and higher discriminates against LMI households that are not financially stable enough to take on multiple lines of credit (or who may not have been deemed credit worthy enough to access a line of credit) yet who may have been reliable utility customers. As Solstice began looking further into preliminary data and speaking to community-based organizations (CBOs) that serve LMI households, we found our hypothesis to be worth investigating; there was indeed a subset of LMI households with poor FICO scores (or no FICO score at all) that had perfect bill payment history. Though initially Solstice was intent on gathering a body of data to prove or disprove this hypothesis, we were also concerned that all this proof of a financially stable and reliable customer was not being incorporated into FICO, and wondered if such a score would be possible. After preliminary research into the existence of alternative scores, Solstice realized that many mission-driven lending institutions rely on alternative metrics that are formulated for their specific industry. However, we also realized that community solar did not have an alternative credit underwriting mechanism, though there was great need from solar financiers for one. We anticipated that the creation of an EnergyScore would contribute to financiers’ need to qualify more people, as these entities are desperately looking for ways to lower the cost of customer acquisition. FICO turns away nearly 50% of potential customers (according to our own acquisition experience), and much of the community solar industry is realizing that FICO is not the perfect qualifying mechanism. Additionally, with a grounding in energy justice, just transitions, and climate justice, Solstice recognizes the need for a solution that addresses a more urgent need for LMI households to access renewable energy savings and relieve energy burdens. With funding from the Department of Energy, we gathered the data necessary to build the EnergyScore, reached out to mission-driven developers willing to test the metric, and secured several demonstration projects to pilot the EnergyScore. After acquiring customers for these demo projects using the EnergyScore, we will be continuously collecting customer payment behavior data. Though it goes beyond the scope of this project, we plan to disseminate this de-identified data with the wider community solar industry, which includes not only financiers and developers, but other mission-driven nonprofits, solar cooperatives, community-based organizations, environmental justice activists, and academics. While we intend to disprove the notion that LMI households cannot be included in projects without acutely increasing the risk to project finances, we also hope the data can be used to negotiate better pricing of systems and terms of ownership for community groups seeking to build inclusive projects.

14 SOLAR ENERGY↗

Data-Driven Understanding of Low-to-Moderate Income Customers’ Adoption and Financial Qualification in Community Solar

Through this project, we sought to gather a body of customer data that either proved or disproved our assumption that metrics other than FICO can and should be used to qualify customers for community solar. Using customer data on income, FICO scores, and utility/rent/cell phone repayment history, we developed an alternative metric in order to test in the market at a small scale whether new qualifying metrics could open the shared solar market up to millions of additional households. We demonstrate that the EnergyScore is both more accurate in qualifying customers that will not default, and more inclusive in qualifying low to moderate income households. We are now in the process of utilizing the EnergyScore in a number of pilot projects, building a robust dataset of customer churn and default, and subsequently disseminating this data to more traditional and larger scale financiers and solar developer partners to change the way potential customers are qualified.

14 SOLAR ENERGY↗

Regulators’ Financial Toolbox: Designing Low- and Moderate- Income (LMI) Community Solar Compensation Programs

On February 9, 2022, as part of the NARUC Winter Policy Summit, five NARUC Staff Subcommittees (Energy Resources and the Environment, Rate Design, Electricity, Electric Reliability and Resilience, and Consumers and the Public Interest) co-hosted two sessions on community solar. The first panel was Community Solar I: Benefits for Low- and Moderate-Income Consumers, featuring opening remarks from moderator Hon. Eric Blank, Chairman of the Colorado Public Utilities Commission, and presentations from Richard Caperton, Vice President, Policy and Market Development, Arcadia, on behalf of the Coalition for Community Solar Access (CCSA); Chris Nichols, Senior Program Director, Groundswell; and Ted Trabue, Managing Director, DC Sustainable Energy Utility. See presentations and recordings. The second panel, titled What is Community Solar 2: Cost Impacts to Participants and Non-Participants, featured opening remarks from moderator Jamie Barber, Director of the Energy Efficiency and Renewable Energy Unit at the Georgia Public Service Commission, and presentations from Dr. Gabriel Chan, Associate Professor, Humphrey School of Public Affairs, University of Minnesota; Matthew McDonnell, Managing Director, Strategen Consulting; and Katie Chiles Ottenweller, Southeast Director, Vote Solar. See presentations and recordings.

14 SOLAR ENERGY↗

DC Solar for All: Implementation Plan to Scale Low- and Moderate- Income Community Solar + Storage Resilience Hubs in the District of Columbia

This implementation plan discusses the District of Columbia's strategy to combine low-income community solar projects with resilience technologies. Through the technical and financial support offered by the Inclusive Shared Solar Initiative and building on extensive stakeholder engagement in LMI neighborhoods around the District, the District of Columbia team expects to reduce energy burdens for LMI residents, address barriers to and streamline SfA program enrollment, and support the development of innovative benefit delivery models, including a community solar-supported climate resilience center.

14 SOLAR ENERGY↗

Product Innovation to Increase Low-to-Moderate-Income Customers' Adoption of Community Solar PV

This study aims to comprehensively analyze community solar project preferences for consumers and suppliers by conducting three distinct analyses. First we analyze the predictors of community solar contract adoption to understand how individual priorities affect the probability of adoption. Using an original data set of survey responses from potential community solar customers, we analyzed the predictors of contract adoption by employing a weighted logit model. We find that individuals who were previously familiar with community solar projects were significantly more likely to adopt than those who were not familiar. Secondly, a survey of community solar developers and financiers identified industry perceived barriers to community solar access and inclusion. Thirdly, we gathered payment performance information from community solar initiatives to measure how financial risks are perceived and how they interact with customer demographics. Our study is beneficial to the public by providing insights into the drivers and barriers of community solar adoption and sheds light on the importance of understanding individual priorities in designing effective community solar policies. The community solar industry has changed significantly since the beginning of this project. The industry continues to grow at a rapid rate, with an additional 7 gigawatts expected to come online between 2022 and 2027. With federal pressure to meet climate goals, as the harms of climate change continue to impact everybody, legislators are looking to community solar as a method to achieving their states energy policy goals. These new policies that push for low-to-moderate inclusion, coupled with the increase in community solar capacity illustrate a new era for the community solar industry. A number of policies have arisen in the last few months that push for more inclusive practices including the groundbreaking Solar for All program run by the EPA. The research created a “best practice” contract that can then be used, in conjunction with the manuscript and validated study, to pitch the industry on a more inclusive community solar product.

14 SOLAR ENERGY↗

Deferred Payment Loans for Energy Efficiency: Case Study of a Low- and Moderate-Income Home Improvement Financing Model and Potential Application to Energy Efficiency Projects

Energy efficiency can provide important benefits for low- and moderate-income households such as lower utility bills and healthier, more comfortable homes, but the upfront costs of efficiency improvements are often a barrier. Extending financing to these households can help overcome this barrier but presents its own challenges, including the financial burden of monthly payments and the risk of incurring the repercussions of nonpayment. The deferred payment loan model can give low- and moderate-income households access to energy efficiency without the financial burden of monthly payments while mitigating the risk of nonpayment. From a program sponsor perspective, when grant funds are limited or unavailable, the model provides certain advantages of both grants and financing. Like a grant, target recipients have minimal risk, but like a loan, funds can serve multiple participants since the funding can be revolved. Organizations in several parts of the country have employed the model to provide safe, healthy homes by paying for home repair and home improvement. This case study provides a detailed overview of the deferred payment loan program for home improvements known as the Home Repair Program run by the Opportunity Council, a Community Action Agency (CAA) serving three counties in Washington State. This case study also considers two other CAA-administered deferred payment loan programs – one in Wisconsin and another in Michigan.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Puerto Rico Solar-for-All: LMI PV Rooftop Technical Potential and Solar Savings Potential

The Puerto Rico Solar-For-All dataset provides Census Tract level estimates of residential low-to-moderate income (LMI) PV rooftop technical potential as well as solar electric bill savings potential for LMI communities at the municipality level. Each dataset is broken out by income group, defined by the Area Median Income (AMI), by tenure, and by building type. The underlying LiDAR data used the estimation were collected in 2015-2017 and the American Community Survey (ACS) data are from 2011-2015. This Puerto Rico Solar-For-All dataset is intended to extend the SEEDSII Solar-For-All estimates for the US 50-states ( https://www.nlr.gov/docs/fy18osti/70901.pdf ) for the territory of Puerto Rico using updated methods. Please see the data documentation for details.

14 SOLAR ENERGY↗

Bringing Solar Energy to Low- and Moderate-Income Communities

The U.S. solar photovoltaics (PV) industry has taken off over the past decade, but without deliberate action low- and moderate-income communities could be left behind. Key recommendations for policymakers and funders in the renewable energy and community development fields that emerged from this process include the following: • Help to capitalize and support community-based lenders to provide flexible, low-cost, and long- term financing to mission-driven solar projects— including providing guarantees or other forms of credit enhancement. • Provide a grant-in-lieu-of-credits option for the Investment Tax Credit as was done during the last recession. • Develop pools of government and philanthropic support that can complement financing from community-based lenders to complete the capi- tal stack for mission-driven projects, as well as to support education and technical assistance to both consumers and potential project sponsors. • Create a national Renewable Energy Credits pro- gram that includes social equity targets to provide a baseline of support for clean energy generation. • Change utility regulations to remove barriers to low-income solar projects, provide greater certainty for developers, and measure progress toward equity in renewable energy policy implementation.

14 SOLAR ENERGY↗

State Strategies to Bring Solar to Low- and Moderate-Income Communities

This Final Technical Report describes the goals, objectives, activities, results, and accomplishments of the State Strategies to Bring Solar to Low- and Moderate-Income Communities Project, managed by the Clean Energy States Alliance. This project enabled five states (Connecticut, Minnesota, New Mexico, Oregon, and Rhode Island) and the District of Columbia to develop and implement strategies for expanding market penetration of solar PV among LMI residents and communities. The project disseminated successful strategies and lessons learned from those states to other states and stakeholders across the country.

14 SOLAR ENERGY↗

Advancing Solar Innovation for Low and Moderate-Income Households (Final Technical Report)

The overarching goal of this project was to deepen the understanding of the social and economic aspects of solar adoption, with a specific eye towards any pathways or barriers that could be identified that directly impact low and moderate-income households. Specific objectives included (1) identifying and assessing significant non-economic barriers that complicate the ability of LMI households to adopt and benefit from solar, even under scenarios with low economic barriers; (2) assessing the differential ability of groups to benefit from solar adoption based on their ability to invest in different solar innovations; (3) explaining why some LMI communities nonetheless experience significantly higher rates of solar adoption and benefit than others; (4) developing a methodological model for generating data addressing key issues to the project; and (5) designing and developing an interactive web portal that aggregates existing datasets, provides researchers trend analysis capabilities, standardizes project protocols for other states and communities; provides the opportunities for researchers using the same protocol in other communities to upload their results; and engages with the general public by providing them the ability to upload their own perspectives and stories of solar technology adoption. Through a common framework for conducting semi-structured field interviews. In partnership with cooperative extension services, in conjunction with survey research and the aggregation of existing solar adoption datasets, this study has identified that currently ,there is a strong values alignment and knowledge access challenge that continues to affect solar adoption. Participants in this study – many of whom are either low or moderate-income and/or live in underserved rural communities do not believe solar is an option where they live or believe solar is appropriate for their lifestyle. This perception challenge is further exacerbated by the absolute dearth of adopters in most communities and a total lack of local marketing for solar energy. What marketing that does exist is geared towards audiences other than those in the participant's community, reinforcing a perception that 22% of survey respondents (n = 1,551) have: that solar energy is not meant for them and their community. Overcoming these serious human challenges pertaining to knowledge and marketing are critical to reducing the customer acquisition costs incurred amongst LMI communities and especially those in rural America where the opportunities solar provides to increase local energy resilience, security, all while engaging in personal stewardship of the planet could align with local values. Community-Based Social Marketing, built in partnership with community leaders and geared towards meeting local visions of ideal life, is a near term opportunity to bridge the gap between local priorities and national market and policy imperatives for solar while moving towards the administration's goals for renewable energy as part of a just and equitable decarbonization program. The tools and methods developed for this study can serve as a template for identifying other specific local challenges for solar adoption in other state, and provide the opportunity for a common data framework for understanding system-wide trends and barriers to achieving uptake of residential solar in communities that may, ultimately, benefit the most from the technology.

14 SOLAR ENERGY↗

Using Behavioral Science to Target LMI and High-Value Solar Installations (Final Technical Report)

This project is a data-driven analysis of approaches to facilitate solar adoption in LMI communities and areas with high potential benefits to the electric grid. The cornerstone of the project was two waves of randomized field experiments. The first wave involved novel approaches to reaching LMI communities based on insights from literature. The second wave involved areas of high potential of solar to the electricity grid, as determined in collaboration with the local utilities in Connecticut. Both waves were followed by surveys to develop insight into the effectiveness of different approaches. A third key element of the project is the development of new agent-based models of solar energy diffusion that explicitly incorporate the real spatial and temporal constraints that influence solar diffusion, based on real-world data on solar adoption. The project also involved outreach and dissemination of key findings to relevant stakeholders, including a guidebook on strategies to accelerate solar deployment to low and moderate income communities, multiple academic publications, and numerous presentations of the research findings.

14 SOLAR ENERGY↗