Solar Community Farms: A Sustainable Approach
In recent years, the use of renewable energy resources is rising. But still, many Americans are unable to utilize these resources due to the lack of accessibility. Many people and businesses in the U.S. live on rent in multiple tenants’ housings, have roofs that are impotent to host a solar system, or sometimes have unavoidable factors that mitigate the power production of solar PV modules. Solar farms give homeowners and businesses equal opportunity to access cost-effective and eco-friendly solar energy solutions. Solar community farms make solar energy accessible for everyone, including the middle-income customer base. The middle class is the one that takes the most hit by the cost of solar panels. These farms will also help to create a stronger and more resilient electric grid.
Sustainable energy solutions are now becoming important than ever because of the global climate catastrophe. A more sustainable future can be expected by using solar energy. These farms are an efficient approach to use the power of the sun. Community farms are joint initiatives by community members to install a solar array in a specific location, like a farm or community garden. The solar panel installation and maintenance expenses are fulfilled by community funds. Also, the produced energy is provided to the community homes. In this article, we will explore that what solar farms are, how they work, their benefits, and how they can contribute to a more sustainable future.
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Important Points To Remember:
- Solar community farms are a type of community solar project where members of a community come together to install solar panels in a specific area.
- In the United States, up to 49% of all homeowners and 48% of all businesses are unable to install solar panels on their roofs due to structural or financial obstacles.
- In the next five years, the U.S. solar community market is expected to add about 6 gigawatts of energy.
- The SEIA’s quarterly report shows that the average cost for solar farm installation is from $0.89 to $1.01 per watt. This means that one megawatt of a solar farm can set you back by $890,000 and $1.01 million.
- According to the study, participants in a solar community farm project in Colorado saved an average of $15 per month on their electricity bills. Participants are expected to save a combined $3.4 million during the solar panels’ lifespan.
What is in this article?
What are Solar Community Farms?
Solar farms are a type of community solar project where members of a community come together to install solar panels at a designated area such as a community garden or farm. The solar panels generate electricity and sharing takes place among the participants. This sharing is often done through a power purchase agreement (PPA) or a community solar subscription. In other words, Community Solar is a local solar facility and multiple community subscribers share this facility to receive credits on their electric bills for their share of power production. This type of structure is sprouting out nationwide due to its perks and payoffs.
In the United States, up to 49% of homeowners and 48% of businesses are unable to install solar panels on their roofs due to structural or financial obstacles. But community solar projects including community farms have the potential to give them access to solar energy. Although solar panels can be expensive to install and maintain and many low-income households might not be able to pay the initial investment. However, solar farms give locals the chance to split the cost of installation and maintenance while getting the advantages of solar energy without any initial investment.
What are Some Facts About Community Farms?
- There are currently 41 states including Washing DC with at least one solar community farm project online. In 2022, the total energy capacity generated by community solar farms was 5.6 gigawatts.
- Through IREC shared renewables scorecard, at least 19 states and D.C. are encouraging the growth of shared renewables through policies and planning.
- In the next five years, the U.S. solar community market will add almost 6 gigawatts.
What are the Main Working Principles of Solar Community Farms?
- Principle of equality:
Community solar will give every consumer a fair chance to participate and get direct economic benefits with the installation and operation of new energy assets.
- Diversity:
Community farms engage many customers in the renewable energy markets. These facilities also encourage customer choice with providers, product features, and attributes to catalyze innovation.
- Maintain a 360-degree view of the community:
The facility tries to maintain a 360-degree view of the community-shared renewable energy market
- Incorporation of the fair bill credit mechanism:
The solar community farm incorporates a fair bill credit mechanism to provide economic benefits to its subscribers.
How Do Community Solar Farms Operate?
The following steps commonly take place in putting up a solar community farm:
- Community Development:
Residents get together for a solar community farm project. A community organization or a solar energy provider can help with community development.
- Site selection:
First, you need to find the ideal spot for the solar panel’s installation. This might be a plot or rented property by a landlord.
- Finances:
Participants’ contributions, grants, and loans need to be funded for this collective initiative of community farms.
- Installation:
A licensed contractor or a solar energy provider installs the solar panels.
- Maintenance:
The solar panels require regular maintenance such as cleaning and repair. The community can either work on maintenance by themselves or hire professional maintenance.
- Energy Distribution:
The energy generated by the solar panels is shared among the participants either through a power purchase agreement (PPA) or a community solar subscription.
The cost of a solar community farm may vary depending on several factors such as the size of the project, the location, the type of solar panels, and the cost of installation and maintenance.
However, according to a report by the National Renewable Energy Laboratory (NREL), community solar projects have become increasingly cost-effective in recent years. The report shows that the cost of community solar projects has decreased by 40% to 70% since 2010.
How much do the Solar Community Farm costs?
The SEIA’s quarterly report shows that the average cost of solar farm installation is from $0.89 to $1.01 per watt. The cost of a solar community farm can also be offset by solar benefits such as cost savings on electricity bills and the potential of revenue generation through the sale of excess energy to the grid.
In addition, there are several financing options available for these farms such as power purchase agreements (PPAs) and community solar bonds which can make the initial investment manageable.
For example, a study by the Clean Energy States Alliance (CESA) shows that the Massachusetts-based solar community farm project financing was done through a combination of private investment, state and federal grants, and a loan from the Massachusetts Clean Energy Center. The project generated revenue through the sale of energy credits and PPA to a local utility.
Overall, the cost of a solar community farm may vary depending on several factors. The decreasing cost of solar panels and installation, combined with the potential benefits and financing options available, make solar farms an increasingly attractive option for communities looking to transition to renewable energy resources.
Benefits of Community Solar Farms
Access to Solar Energy:
One of the advantages of solar community farms is that they give families and businesses access to solar energy even if they are unable to put solar panels on their roofs due to structural or financial limitations. This means that more individuals will be able to take advantage of solar energy’s financial and environmental benefits.
Cost reductions:
Participants in these farms may see substantial cost reductions. They can reduce their electricity costs by sharing the cost of installation and maintenance and pooling resources. Additionally, research from the University of California Berkeley shows that participation in solar farms can save a lot of money. According to the study, participants in a solar community farm project in Colorado saved an average of $15 per month on their electricity bills. Moreover, participants can expect to save a combined $3.4 million during the solar panels’ lifespan.
Economic Benefits:
Community economic gains are another possibility for these farms. A report by the Clean Energy States Alliance (CESA) statistics shows an amazing fact. According to the report, over 100 people got employment and $8.2 million in economic activity came into reality through a community solar project in Massachusetts. These financial advantages may help boost regional economies and have the potential to generate new jobs.
Environmental Benefits:
Community farms powered by solar energy can also have a positive environmental impact. In comparison to conventional energy sources, community solar projects, such as solar community farms can cut carbon emissions by up to 50%, according to a report by the Rocky Mountain Institute. By lowering carbon emissions, we can lessen the effects of climate change and step towards a more sustainable future.
Challenges of Solar Community Farms
Although solar community farms have numerous advantages, they also present several implementation difficulties.
Financing:
Financing is one of the main issues faced by these farms. Particularly for areas with low resources, the initial cost of installation and maintenance can be a considerable barrier. The initial expenditure can be made affordable through financing options including power purchase agreements (PPAs) and community solar bonds.
Regulatory Obstacles:
Regulatory obstacles are another difficulty for solar community farms. Regulations in some places can make it more difficult for communities to build solar panel arrays or sell extra energy back to the grid. Communities may find it more challenging to install these farms as a result.
Location:
Choosing a location for a solar community farm might be difficult. The solar panel array needs to be situated in a region with adequate sunlight so that enough electricity can be generated. This eventually become the reason for limited solar farms.
Where is the Biggest Solar Community Farm in the U.S.?
Copper Mountain Solar facility present in Eldorado Valley; Nevada is currently the biggest solar community farm in the U.S. Its total power production capacity is 816MW. This community energy project has gone through four expansions since its inspection in 2010. The most recent expansion was done in March 2021.
Moreover, in Northern Indiana, Mammoth Solar is a $1.5 billion project which is currently under construction. After completion, it will possess an energy production capacity of about 1650MW. Mammoth Solar is likely to surpass the current biggest solar community farm. Mammoths will cover at least cover 13,000 acres of area and contain approximately 2.85 million solar panels. Completion of this community energy project will take place in 2024.
Conclusion:
Solar community farms offer a viable solution for communities seeking to harness the power of the sun and transition to renewable energy sources. By sharing the cost of installation and maintenance, participants can save money on their electricity bills and contribute to a more sustainable future. The environmental, economic, and social benefits of solar farms make them an attractive option for communities looking to reduce their carbon footprint and build a more resilient and sustainable future.
As research has shown that these farms have the potential to provide access to solar energy for households and businesses that may not be able to install solar panels on their roofs due to financial or structural barriers. They can also provide significant cost savings and economic benefits for communities while reducing carbon emissions and mitigating the impacts of climate change. As such, these farms are a sustainable solution that communities should seriously consider.
