Transmitting solar energy across state lines? An innovative community solar solution is here!
In the last decades, with the rapid growth of clean energy globally, community solar projects have gained strength as a leading driver of the green transition. They offer an alternative path for individuals who cannot put solar on their own roofs to access solar energy. But conventional community solar has its shortcomings, such as its users having to reside in the same state or grid as the generating plant, shutting out numerous low-income individuals from participating.
A new form—synthetic community solar—has now emerged. Transporting solar credits between states, eliminates geographical constraints and provides new pathways for bulk adoption of clean energy.
What is "synthetic community solar"?
Simply put, synthetic community solar is an innovative "interstate sharing" mechanism. It allows photovoltaic power plants in one location to transfer electricity revenue and credits through a cooperative mechanism to low-income users in another state. This allows users in areas without suitable photovoltaic projects to receive electricity discounts and enjoy the dual economic and environmental benefits of solar energy.
For example, the US clean energy company Ampion Renewable Energy has launched this type of solution. By partnering with utilities, they convert revenue generated from solar power generation into bill credits, which are then distributed to eligible customers in other locations. Data shows that a 2.5-megawatt photovoltaic project in Maine has successfully provided electricity rate discounts for Illinois households, reducing their electricity prices by up to 20%.
This model not only addresses the long-standing issue of community solar being limited by geographic location, but also helps developers more quickly meet the incentive requirements for low-income projects under the Inflation Reduction Act, creating a win-win for both businesses and communities.
The Value of Combining Community Solar with Energy Storage
While community solar opens up these geographical restrictions, to truly put the icing on the cake, it needs to be supported by an adequate battery energy storage system.
- Peak shaving and load shifting: The system stores solar energy when prices are low and releases the stored energy at peak time to provide some additional savings for its consumers.
- Enhancing grid stability: Energy storage can absorb power fluctuations from interstate power transmission.
- Backup for communities: During outages or grid disturbances, energy storage can ensure that critical load requirements of the communities, including lighting, heating, and health, are supplied with uninterrupted power.
- Extending project life and increasing revenue cycle: Energy storage systems help with making the revenue of power generation more controllable and predictable, thereby enabling the developers and investors to increase their return on investment.
Investing in the "solar+storage" community model will make their project more attractive to businesses and allow them to benefit from advantageous policies and opportunities in the market.
International Giants Join the Fight: From Google to EDPR
The potential of community solar has also attracted the attention of international giants. For example, Google has partnered with renewable energy developer EDPR to develop a 500-megawatt community solar portfolio covering approximately 80 sites in the PJM region of the United States.
Furthermore, one-third of the project will be located in low- and moderate-income communities, which will not only provide residents with direct electricity bill reductions but also create new jobs and tax revenue. This large-scale deployment demonstrates that "combined community solar" is not only an innovative concept but also a key path in the energy transition.
Indiana Case Study: Community Solar and the Exploration of Equitable Energy
In addition to corporate initiatives, the US government and local organizations are also actively exploring this approach. For example, Indiana's Solar Opportunities (SOI) program is dedicated to helping low-income communities share the benefits of photovoltaics. The EPA has allocated $117.4 million to the project to support community solar development and promote energy equality.
Although the changing political landscape temporarily created uncertainty in project funding, it also indirectly reflects that community solar is no longer just a technical issue; it has become a critical issue affecting social equity, energy security, and regional development.
Future Outlook: The Upgrade Path for Community Solar
With the promotion of "synthetic community solar," community solar will see several development trends:
- Closer integration with energy storage: Solar power plus BESS will become standard, helping communities achieve 24/7 energy security.
- Popularization of cross-regional sharing: More interstate projects will be implemented, freeing clean energy from geographical constraints.
- Dual drive from policy and capital: Investment Tax Credits (ITCs) and social responsibility funding will encourage more businesses to participate in community solar projects.
- Intelligent operations: Leveraging EMS (Energy Management Systems) allows for remote management and optimized scheduling of cross-state projects.
Final Note
"Synthetic community solar" makes interstate solar energy transmission a reality, giving low-income people their first opportunity to truly participate in the energy transition. For businesses and developers, community solar projects combined with energy storage not only meet policy incentives but also generate long-term, stable commercial returns.
In the midst of the energy transition, the combination of community solar and energy storage is undoubtedly the most promising innovation. In the future, it could become a key driver of energy equity and green transformation.
