A primary objective of U.S. Department of Energy’s SunShot Initiative is to reduce the price of solar photovoltaic (PV) technologies by approximately 75% from between 2010 and 2020. With 2020 target just over the horizon, ScottMadden reviewed progress in solar PV price reductions to date. The analysis shows the prices of utility-scale solar PV systems in the United States have fallen more sharply than residential solar system prices from 2010 to 2015. A primary reason for the difference is declining module costs have had a greater impact on utility-scale system prices given their larger share of total project costs. Consequently, utility-scale systems can offer electric utilities economic and operational advantages over residential systems.

Community solar is a rapidly emerging model that combines the value of direct customer “ownership” of rooftop solar with the flexibility and economic advantages of utility-scale solar. Development of a community solar program by an electric utility is not simple and requires a coordinated approach to successfully enter the market.

The first portion of this article provides a definition of community solar, overview of the community solar market, overview of advantages community solar, and outline of community solar models. The second portion of this article uses question and answer format to discuss community solar implementation issues. Questions focus on program design, customer motivations, and financial implications.

Additional Contributing Authors: John Sterling
Public Utilities Fortnightly – December 2015 Magazine