- Acclimate by Solvecast
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- #001 - ☀️ Community Solar ☀️
#001 - ☀️ Community Solar ☀️
Installing solar panels is not a viable option for 75% of homes and businesses. But there's another way.

📣 TLDR
Community Solar allows people and businesses to access solar power without installing panels on their property.
Solar panels are attached to the grid. Customers generate savings credits applied to a residential or small business’s energy bill.
😬 Problem
Installing solar panels is not a viable option for 75% of homes and businesses.
Renters do not have the option to make changes to their living space. Some homes and other buildings are not structurally suited for solar panels.
🎯 Solution
Community Solar programs build large solar arrays (i.e. solar gardens) close to population centers.
Each customer purchases or rents enough solar power to meet their needs. This eliminates the need for customers to install panels on their home.
💪🏼 Organizations
Marketplaces
Developers
Note: the above are national developers, but local developers make up 60%+ of the market.
Projects
Florida abandoned airport being turned into community solar garden.
Niagara Falls landfill has a solar garden being placed on top of it.
Washington, DC has a FexEx facility with a community solar garden on its roof.
⚡️ Opportunities
Incentives created by the Inflation Reduction Act. Info via CTVC IRA Tracker.
Wind, Solar, and Battery Manufacturing Production Tax Credit (PTC) creates a manufacturing credit.
Batteries: $35/ kWh (battery cell), $10/ kWh (battery module)
10% PTC for production of critical minerals, solar and wind components, power inverters, and battery components
Energy Investment Tax Credit (ITC) expands clean energy manufacturing for electric vehicles, wind turbines, and solar panels.
30% ITC
10% bonus if domestic manufacturing requirements are met (steel, iron, etc)
Low-Income Solar and Wind Investment Tax Credit (ITC) increases energy credit for solar and wind facilities placed in service in connection with low-income communities
10% bonus for projects located in low-income communities
Residential Clean Electricity Tax Credit (ETC)
30% residential tax credit for residential solar, wind, geothermal, and battery storage systems
⚠️ Challenges
Finding usable space for community panels is difficult.
Commercial buildings like offices, warehouses, and parking lots can host community solar.
Businesses need to be incentivized and helped with the permits and build-out.
Connecting community solar to the grid is easier said than done.
Every project needs to be hooked up to the grid, then approved, validated, and inspected before going live.
A lot can go wrong during that process.
Projects can easily be delayed by changes in regulations or utility requirements.
Utilities operate as regional monopolies and block any power-generating projects they don’t build themselves.
📈 Predictions
The IRA, CHIPS Act, and desire for energy independence will lead to US solar manufacturers ramping up production. FirstSolar is committing more than $1.2B for new plants.
Commercial community solar projects will expand as businesses cut costs during a recession.
Enablement software is fragmented across the solar supply chain. A “Salesforce for Solar” will emerge. Auror Solar has raised $523M and uses aerial imagery to assess solar installation projects.
High risk areas for climate vents will embrace community solar. This is a gateway to micro grids and distributed renewable energy. California is leading the way.
Business models are maturing. Flexible contracts are being introduced. This will lead to more customer adoption.
😈 Devil’s Advocate
“Solar gardens are just solar farms. They’re ugly.”
This is the renewable energy version of NIMBY.
Fortunately, solar gardens don’t need to be in population centers. Just near them.
“Most solar panels are made in China. We need energy independence.”
True. The IRA incentivizes domestic production.
🚀 Takeaways
Residential renewable energy is hard to obtain for the 60%+ families that rent. 75% of buildings can’t support solar panels. Community solar is the solution.
Manufacturers get investment and production credits. Landlords get investment credits. Subscribers get up to a 10% discount on monthly electric bills. It's a win-win-win.