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“Community Solar” is a legislative term for a specific type of solar project that connects to the local grid through the distribution network. Essentially it works off of the principle of net metering.
Different state legislations require utility companies to pay near the retail rate of power for a certain amount of power generated from renewable energy projects. This is a requirement so that they can meet certain legislative goals of being “carbon neutral”. The Solar developer then finds “subscribers” (people and companies who use as much electricity as the project generates) to subscribe to the project.
Usually the subscriber agrees to signup for the lifetime of the project. In exchange, the subscriber is provided with a small rebate off their electric bill from the solar developer in exchange for signing up. The solar developer is happy because even with the rebates given, the rates that they get for power generation are still significantly higher than normal power plants.
Compared to the expansive projects typically developed for “utility scale solar”, community solar projects require far less land, typically 25-60 acres, and connect to the grid via the 3-phase electrical lines found commonly in most areas.
These aspects support greater flexibility in working with landowners and support faster development timeframes to help ensure site owners start receiving revenues from their land lease as soon as possible.
The best sites for Community Solar are near or connected to a 3-phase power line that is under 34.5kv (high power transmission lines won’t work), are close to an electrical substation, in a investor owned utility and are on buildable land. While the rules vary by the state, generally you can only place Community Solar projects on one parcel
In The Correct Service Territory:
While specifics on which utility companies take part in Community Solar initiatives vary by state, Community Solar generally requires that the land be in a public utility service territory. In many instances, land serviced by municipal or electric cooperative utilities are not eligible for participation. It is best to contact your electricity provider to confirm that you are not serviced by a cooperative or municipal utility.
Distance to Three Phase Distribution Lines:
Community Solar projects connect directly into the local distribution lines that connect the local area to the grid. High Voltage Transmission Lines are often too big to connect to for these type projects. Most lines 34.5 KV or under will work. The closer your property is to the line, the better although if your property does not sit right next to 3-phase it is possible to extend the line to your property.
Generally speaking, a 3-phase distribution line will have three wires running on the top of a T, similar to the picture shown. The pole may also carry wires below that that are generally for telephone or cable.
Distance from Substation:
Distance to the substation is measured down the line rather than the crow flies. Distance may impact project feasibility as lines often need to be upgraded before a project can be connected to the grid. Ideal sites are those located closer to the distribution substation due to the lower cost of grid upgrades required to bring the project into operation.
In order for your land to be considered for Community Solar, it must be generally flat for the technology to work, and also free of wetlands and floodplains. Projects generally require 8-10 Acres per Megawatt with the typical project footprint ranging from 25-60 acres. If the land has zoning, the permitted uses must allow for solar generation so that we may obtain the necessary Special Exemption or Conditional Use Permits from the county authority. While safe to be around residential areas, the less residential houses near the potential site, the better for permitting purposes.
Are you interested in leasing or selling your land for Community Solar?
Feel free to Contact Us for a free evaluation
When choosing Demeter and our partners, landowners gain the benefit of well funded and experienced development and finance partners to ensure the highest build rates in the industry. Rather than selling the project after construction as many others in the industry do, our partners also tend to own and operate the solar generation site for the lifetime of the project. This provides landowners a long-term relationship they can rely on and trust in as stewards to their land.