How Solar Power Is Learning to Share: The Rapid Growth of Community Solar

For much of the recent rise of solar power, the industry has been divided in two:  distributed rooftop solar, and utility-scale solar parks.  According to a new report from GTM Research, a third type of solar in which consumers share renewable energy installations is set to take off this year — and to represent a large market share of the industry by 2020.

Known as community solar, solar gardens, or more simply shared solar, GTM researchers found that the U.S. “market is approaching a tipping point.”  With a total of 66 megawatts installed cumulatively by the end of 2014, the report predicts that installations will grow five-fold in 2015, with 115 megawatts installed.  By 2020, there will be 1.8 gigawatts, nearly equivalent to the total amount of solar power installed in the United States in 2012.

The economic, environmental, and social benefits of distributed photovoltaic (PV) have not been available to all consumers.

Designed for those without rooftop access, these shared solar projects will open up opportunities for some 50 percent of current U.S. households and businesses that are unable to host a photovoltaic system due to site unsuitability, ownership, or multi-unit status, according to a recent National Renewable Energy Laboratory (NREL) analysis.  The analysis found that by bringing shared solar to these households and businesses that are unable to host on-site PV, shared solar could represent 32 to 49 percent of the distributed solar market in 2020, representing $8.2–$16.3 billion of cumulative investment.

“Historically, PV business models and regulatory environments have not been designed to expand access to a significant portion of potential PV system customers,” said David Feldman, NREL energy analyst and lead author on the report.  “As a result, the economic, environmental, and social benefits of distributed PV have not been available to all consumers.”

The GTM analysis found that while there are 24 states with at least one community solar project in operation, California, Colorado, Massachusetts, and Minnesota will install the bulk of the community solar projects at least for the next two years.

On Tuesday, the Obama administration added to the momentum by announcing a new Energy Department program to help build community solar systems as part of a larger effort to install 300 megawatts of solar power in subsidized housing by 2020.  White House officials including Brian Deese, Obama’s top energy advisor, told reporters that around half of all U.S. households don’t have access to solar because they are renting or don’t have enough usable space.

Read more at How Solar Power Is Learning to Share:  The Rapid Growth of Community Solar