Page 21 - North American Clean Energy September/October 2019 Issue

obviously disincentivizes them from joining. Developers also lack incentives to attract low income customers.
A number of innovative approaches to achieving greater inclusion have been implemented across the states offering community solar. Most of these involve mandating a percentage of LMI participation, or making programs that cover the costs of
LMI participants through alternate payment or credit rating structures.
A recent initiative in New York state plans to cover the community solar enrollment fees and other costs for 7,000 low-income households. Another project, by the New York State Energy Research and Development Authority (“NYSERDA”), aims to benefit LMI communities by offering a third of
the subscriptions for community solar contracts (amounting to 26.4 megawatts of capacity) free of cost.
Apart from mandated inclusion, LMI households wishing to seek approval
to a community solar program may
be denied if their credit score is low or non-existent. To address this, the Green Jobs--Green New York program offers alternate qualification tiers for solar power and energy efficiency loans, where the focus is more on mortgage payment history and an added sliding debt-to-income ratio requirement. In Massachusetts, a test program qualifies LMI users for community solar based on a more comprehensive set of criteria including income data, FICO score, and repayment history on household expenses (utilities, rent and cellphone).
Community institutions may play
the role of an anchor subscriber
to absorb the fluctuating costs of participation, enabling even more
LMI subscribers to join. Local NGOs
or government agencies can also
help find LMI subscribers, as well as carry the administrative burden of signing up participants for developers. Additionally, by keeping a waiting list
of subscribers ready to join when other participants leave, community solar can reduce the likelihood of price variation.
Through well-planned policies, community solar has the potential to tackle a number of socio-economic disparities that LMI households face. Inclusive solar programs can reduce any stigmas that solar only benefits wealthy individuals. At the same time, it can reduce the long-term costs of
energy while providing jobs for those most in need, reducing financial strain. Lastly, and most importantly, including LMI participants in community solar programs pushes solar forward as a viable mainstream option that reduces the consumer’s cost of energy while accelerating widespread adoption.
Manish Nayar is the founder and Managing Partner of OYA Solar. Manish has led the growth of the company and its resulting 1000MW+ North American development pipeline. Manish has developed, constructed or transacted on over 500MW of solar assets in the last 10 years.
Oya Solar /// oyasolar.com
North American Clean Energy
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