Colorado modernizes community solar program – pv USA magazine

May 23, 2024 Anna Fischer

With his signature on board SB24-207, Governor Polis signed legislation to modernize the state’s solar program, launch a new dispatchable distributed generation program, modernize the power grid, and promote energy equity.

Colorado received a $156 million grant from the EPA Solar for All program to provide loans and incentives for the development of community solar systems, including direct funding for community solar projects in the state, helping to reduce utility bills, create jobs and increase benefits from solar energy to low-income and disadvantaged communities.

One of the main benefits of community solar is that it opens access to customers who may not have the right roof or financial situation to install rooftop solar. It allows residents, businesses, organizations and municipalities to subscribe to a portion of the electricity produced by a photovoltaic installation in order to receive a credit on their electricity bills for the energy produced.

The Solar for All program is one of three subsidy programs under the Greenhouse Gas Reduction Fund established under the Inflation Reduction Act. EPA intends to design the grant competition to “maximize impact on” the fund’s objectives, namely to reduce greenhouse gas emissions and other air pollutants, provide program benefits “particularly” to low-income and disadvantaged communities, and mobilize financing and private capital.

The DOE estimates that the average low-income household using this program will save approximately $400 per year on electricity bills; This adds up to over $350 million in annual household savings from all 60 successful applicants, for a total of over $8 billion in cumulative savings over the standard 25-year life of a solar project.

“All Coloradans, regardless of income level or homeowner status, should have the opportunity to participate in the transition to renewable energy,” said Senate President Steve Fenberg, sponsor of SB24-207. “By signing this bill, we took an important step toward removing barriers to accessing solar energy – such as home ownership or credit requirements – to ensure renters, nonprofits and small businesses can participate without breaking the bank.”

According to Mountain West’s Kevin Cray, Colorado was the first in the nation to pass legislation in 2010 to “actually enable” the creation of a third-party community solar model

“It’s time for modernization. Governor Polis’ action today will revitalize solar energy in Colorado communities, enabling the state to regain its leadership in providing customers with equitable clean energy options,” Cray said.

The new law is expected to bring the following benefits:

• Provide significant bill savings of 25-55% to thousands of additional income-eligible Colorado households;
• Reserve at least 51% of each community solar project for income-eligible residential subscribers;
• Improve the subscriber experience with best-in-class sign-up methods, consumer protections and consolidated billing;
• Prioritize projects in preferred locations such as rooftops and brownfields, and promote dual-use practices such as agrivoltaics; AND
• Improve methods used by third-party stakeholders to develop community solar projects using investor-owned utilities.

“This legislation reflects the state’s continued commitment to ensuring a just transition to clean energy and leveraging local energy resources to create a viable and resilient grid,” said John Bernhardt, vice president of policy for Pivot Energy. “As a Colorado-based company, we are proud of our state’s leadership and stand ready to help meet the goals of SB 24-207.”

Organizations and advocates including, but not limited to, Vote Solar, Nature Conservancy, Grid Alternatives, Colorado Solar, and the Storage Association are optimistic about the opportunities this legislation presents.