Introducing: Community Solar Is Coming To Oregon!
Posted on June 28, 2016 by Sarah Ryan-Knox
Tags, Energy
Background How does Oregon define a “community solar project”?
Community Solar is a type of shared renewables project that pools investments from multiple members, either residential or commercial, and provides energy and financial benefits in return. This means that customers who are unable to install or fully utilize a solar system on their home can buy “shares” in a community solar project that is located elsewhere. So, instead of one person owning a solar system, a “community” owns the system.
What is valuable about a community solar option is that it makes solar energy available to everyone, even if they are not homeowners or don’t get much sun on their roof. It also helps with the affordability of solar. When individuals buy shares of community solar they do not have to have to actually install solar panels, however they still get the benefits of credit on their electric power bill.
History
The Oregon Legislature has been exploring the idea of community solar for the past few years. In 2013, it directed the Public Utility Commission to study the effectiveness of Oregon’s solar energy incentive programs, including the resource value of solar energy (Docket No. UM 1716). In 2015, the Legislature directed the Commission to examine a range of possible community solar programs under House Bill (HB) 2941 and to recommend community solar program designs, which the Commission did after holding public workshops and comments (Docket No. UM 1758). The Legislature also directed the Commission to investigate community solar in Oregon with UM 1746. CUB participated in that process and provided comments to the Commission about our preferred attributes of community solar.
SB 1547 – The Clean Energy and Coal Transition Act
In March 2016, CUB contributed significantly to the passage of Senate Bill (SB) 1547.This bill requires Oregon’s investor-owned utilities to eliminate coal-fired resources from Oregon’s energy mix by 2030 and to increase the use of clean energy to 50 percent by 2040. Importantly for this conversation, , SB 1547 also directs the Commission to establish a community solar program in Oregon through the new Community Solar Projects law.
What does this law mean for solar in Oregon?
The short answer is that it will encourage solar project development in the state.
There are several features of SB 1547 that are intended to promote such development, such as requiring investor-owned utilities (PGE, PacifiCorp, and Idaho Power), to enter into 20-year community solar agreements, requiring the projects to stay in Oregon, and allowing any customer of PGE, PacifiCorp, and Idaho Power to participate in the program. The combination of these factors should encourage solar development within the state and will also give end-use customers greater freedom to select the source of their electricity.
Will community solar provide benefits to low-income residential customers?
Yes! SB 1547 directs the Commission to determine a methodology by which low-income residential customers will receive 10 percent of the generating capacity of the community solar projects operated under the program! The new law also provides that any value associated with the generation of electricity that exceeds an offer to own or subscribe to a project must be used by the electric company procuring electricity from the project in support of the electric company’s low-income residential customers.
What’s Next?
The Commission still hasn’t opened the community solar docket, but you can expect CUB to be involved and fighting for ratepayers when we do. We will keep you updated on community solar and the rules that are eventually adopted. Stay tuned for more updates!
Conference
Taking place on Friday, October 14, 2016 at the downtown Portland Hilton, the sixth annual CUB Policy Conference, The Future Starts Now, will explore emerging issues in the utility sector. The program is specifically designed to educate utility analysts, policy analysts, attorneys, industry professionals, stakeholders, and others working in and around the energy industry. During the conference, there will be a breakout session titled “How Will Our Solar Garden Grow?” The session will discuss how SB 1547 paved the way for community solar programs, even though much uncertainty hangs in the air. The Commission continues to work on ratemaking rules as well as determining the resource value of solar power. We’ll be posting a preview of this panel on the CUB blog in the coming weeks, so stay tuned.
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12/27/16 | 0 Comments | Introducing: Community Solar Is Coming To Oregon!