Illinois utilities and regulators are putting into motion
plans for community solar programs under the state’s Future Energy Jobs Act that
passed last year.
In filings with
the Illinois Commerce Commission (ICC) last month, ComEd outlined proposed
terms and conditions for “Community Supply,” also referred to as community
solar. Ameren Illinois has also recently filed paperwork with the ICC
outlining changes
to net metering policies as the state moves to implement community
solar.
So far, the filings are relatively narrow in scope, setting
the table for bigger debates over how community solar and other aspects of
Illinois’ changing energy landscape impact ratepayers. Both utilities are
essentially defining the terms of how consumers will be credited in a community
solar arrangement, and a decision by the ICC is expected by the end of the
month.
More significant changes are expected to come once the state
outlines a more long-term plan for deploying and pricing renewable power.
Clean energy advocates and consumer groups have largely
responded positively to the initial steps taken toward community solar in
Illinois, but have voiced some concerns over who will be able to participate in
the program and how much incentive they will receive to do so.
“Overall, it’s looking pretty good,” says Brad Klein, a
senior attorney at the Environmental Law and Policy Center (ELPC). “We expect
the mechanics to work well for the companies and for subscribers and to
hopefully make it a pretty smooth experience for them.”
ELPC hopes to maximize the value of the bill credit
community solar subscribers would receive in exchange for participating in the
program. Under ComEd’s proposal, the credit would be limited to electricity
value, while ELPC prefers that it also
include transmission value. Klein says excluding transmission value would
reduce the value of the bill credit by 20 percent.
ELPC and other groups have also flagged potential concerns
over ensuring small, grassroots and community-driven solar efforts have equal
access to developing community solar projects.
“In order for the program to fully serve Illinois residents
and communities, the (Illinois Power Agency) should take extra care to design
the community solar program with both developer-driven as well as more
bottom-up, community-driven projects in mind,” the Sierra
Club wrote in response to a request for comments in advance of the
agency’s forthcoming renewables plan. “The Agency should also monitor the
success of community-driven projects and consider program changes if such
projects struggle to succeed.”
Overall, the Future Energy Jobs Act has ambitious
plans for adding solar capacity statewide: 2,700 megawatts (MW) by
2030 compared to the current 75 MW. Of that, about 50 percent is to be from
distributed and community solar.
More customer control
Community supply is aimed at opening up solar power to
consumers and households that might not have the financial means or space
requirements to install or own an onsite solar array.
“The old model is for the energy supply to be one way, but
customers want more control over and choices for their energy use,” said ComEd
spokesperson Elizabeth Keating. “Community Supply allows customers who do not,
or cannot, choose to install their own generation, to participate in renewable
generation.”
ComEd’s move is a result of the Future Energy Jobs Act passed
in December by the Illinois General Assembly. The legislation bolsters
two financially stressed Illinois nuclear plants, calls for a dramatic increase
in spending on efficiency programs and renewables projects, particularly in
low-income areas. It also outlines the broad parameters of how utilities can
and should implement the principle of community supply.
Later this month, the Illinois Power
Agency is expected to release a draft “Long-Term Renewable Resources
Procurement Plan” that will detail many of the goals set forth in the Future
Energy Jobs Act.
The Act calls for 400 megawatts of community solar projects
in Illinois by 2030. Nationally, there are nearly 3 gigawatts of community
solar in development across 29 states, according to a report
released in February by Greentech Media Research. ComEd expects its
customers will be able to participate in community solar sometime in 2018.
Shared solar potential
Solar advocates see huge potential for community or shared
solar to greatly expand the adoption of renewable energy across the U.S.
Roughly half of American households and businesses are unable to host their own
photovoltaic system, according to a 2015 study by the
National Renewable Energy Laboratory (NREL).
If solar were made available to these customers through
shared solar programs, it could represent 32 percent to 49 percent of the
distributed solar photovoltaic market by 2020, the NREL study found. That would
increase cumulative solar photovoltaic development growth by 5.5 gigawatts to
11 gigawatts between 2015 and 2020, representing $8.2 billion to $16.3 billion
in investment.
In the Chicagoland area, where many people rent their homes,
the barrier to solar is even higher. Cook County officials estimate that as
much as 75 percent of residents are unable to host their own solar photovoltaic
system. With backing from the U.S. Department of Energy, Cook County launched
its own community solar effort in 2015. In May, the Cook County Department of
Environmental Control selected
15 pilot sites to study and establish community solar in the region.
The ultimate goal is to provide solar to 300,000
households that would not otherwise have access to the energy source.
Between 2018 and 2030, community solar is expected to create
11,363 cumulative total jobs in Illinois, according to a
benefits study released in August by Cook County. These jobs will produce
an estimated $655 million in cumulative total earnings for local workers over
that same time period.
Illinois will be the second state in the Midwest to
implement a statutory, statewide community solar program, Klein says. In
2013, Minnesota
enacted an energy billthat introduced community “solar gardens,” which
similarly allowed customers to subscribe to nearby solar projects. More than
300 MW of solar gardens at more than 80 locations are proceeding through the
design and construction process, according
to Xcel Energy.
“[Minnesota’s] program is really getting its legs under it
now, and it’s growing,” Klein says. “We expect Illinois to be growing extremely
quickly over the next few years and to be a leading market for community
solar.”
No comments:
Post a Comment