Solar Landscape CEO on New Jersey’s growing community solar boom
Take a community, pair it with solar panels, and you’ve got what is fast becoming a nationwide trend in how people get their electricity.
There are now 40 states with at least one community solar project online, with approximately 2,600 cumulative MW installed through 3Q 2020. At least 19 states and D.C. have implemented policies and programs around shared renewables, with the next five years expected to see the U.S. community solar market add up to 3.4 GW--enough to power roughly 650,000 homes.
In New Jersey, the recent completion of an 11.1 MW solar project, developed by Asbury Park developer Solar Landscape on one million square feet of rooftop space in Perth Amboy, marks the state's first completed project as part of the Board of Public Utilities’ Community Solar Energy Pilot Program. The program seeks community solar projects dedicating at least 51 percent of their output to low-and moderate-income (LMI) households.
“We’re selling 51 percent or more of the electricity that we generate to LMI households in New Jersey, and it’ll be sold at a 15-20 percent discount,” Shaun Keegan, Solar Landscape CEO, told NPM. “This was the most ambitious attempt by any state to provide access to all and promote environmental justice with the mandated 51 percent. It kept some developers from even entering the market or from even coming into New Jersey because it was sort of unchartered territory.”
Established in 2019 under Gov. Phil Murphy’s Order 28, the pilot program is focused on underserved and overburdened communities, aligning with the Administration’s commitment to environmental justice and a key component of reaching the state’s goal of 100 percent clean energy by 2050.
“What we found is that through community partners and organizations that we work with, we’ve been able to really educate the community and build trust with LMI households, who can be traditionally skeptical of programs and benefits,” Keegan said. “It's not just advertising in a magazine--you have to work with community leaders. In these communities, you have to build trust, and that happened over time. We’re nearly fully subscribed. We have 51 percent low income, 49 percent open to the public, and that really has to do with working with community organizations and leaders to educate households. It was something that was sort of new and has gone surprisingly well.”
In 2019, the BPU awarded nearly 78 MW to 45 projects based on their location, community engagement, and local benefits, particularly for LMI communities. The second round of the program, launched in October 2020 and closing last month, has allotted 150 MW of community solar energy capacity – doubling the capacity of year one and ensuring that at least 40 percent of awarded projects serve LMI communities.
“The biggest change is the amount of capacity from 75 to 150 MW,” Keegan said. “There was so much excitement around Round 1 that they doubled the program. As a result of there being more capacity, more building owners were willing to look at the offering and it didn't seem like such a lottery--it seemed like something that was more attainable. I think that doubling the capacity was the biggest change that we saw had a positive impact.”
In October 2020, the BPU proposed amendments to the program based on feedback from stakeholders, who highlighted concerns around project development timelines, annual capacity allocation, LMI eligibility criteria, and the timing requirements for notification of changes to customer subscriber management organizations.
Proposed changes include extending the deadline from 12 to 18 months for approved projects to become fully operational and setting annual capacity limits during the relevant program year when solicitations are issued, rather than tying it to the beginning of the calendar year.
“The utilities are being responsive,” Keegan said. “I think everybody’s getting behind community solar on a lot of levels. From the government to the BPU to the local utilities, I think everyone is embracing community solar.”
Besides bringing several major projects online in a sector beleaguered by COVID-19 setbacks, the company has also managed to launch a formal online program to train more than 100 individuals in solar installation.
“There are organizations that help at-risk youth, getting people to work who are coming from economically disadvantaged situations,” Keegan said. “When the in-person classrooms stopped, a lot of those kids didn't have a direction, and we stepped in quickly with this online program. We gave a lot of folks the opportunity to learn a new trade in the fastest growing construction trade in the country, so we created real jobs this year. Some of those people are still with us today, and some of them we placed with other friendly competitors and they’re working there, so definitely proud of who we brought into the fold and got into solar this year.”
While the company developed eight community solar projects during the solar program's first year, Keegan says his company submitted significantly more project proposals in the second round.
“We were able to find partners in the community to build on our momentum so that we have a lot of community and nonprofit partnerships and collaborations happening to make these projects come to fruition,” he said. “On the LMI side of the business, it's all about those partnerships and that collaboration. We had a team of really good community engagement folks working on partnering with municipalities, nonprofits, local school districts and really trying to educate and access the community. The more people that come around to it, the more it becomes just a common experience and something that they’re familiar with. We’re just going to keep building on that momentum.”
Image courtesy of Solar Landscape