This document discusses community solar policies in the Southeast United States. It notes that utilities currently have sole authority for community solar programs, and that third-party competition would require additional legislation in most states. It outlines the community solar and solar policies of different states in the region. Key challenges include legalizing third-party involvement and determining fair rates and credits for solar energy exported to the grid. Potential solutions discussed include utility-sponsored programs, leveraging funding sources, and permitting third parties under certain conditions. Examples of positive community solar programs in North Carolina and South Carolina are provided.

1. Community
Solar
Policies in the Southeast
NCSP Regional Community Solar Conference, Atlanta
May 24, 2016
Berneta L. Haynes

2. Why Community Solar?
 Community solar is a low risk way for utility customers and co-op
members to benefit from solar energy without any of the hassles
of designing, permitting, installing, maintaining and insuring their
own photovoltaic solar array
 Community solar will be fair to all utility customers and co-op
members and will not be subsidized by customers/members who
do not participate in the program

3. Regional Policies
Community Solar and Third-Party Competition: Utilities are currently the only
entities with clear authority in the Southeast to enter into Community Solar programs
with utility customers.
 GEORGIA: Third Party solar law enacted to allow solar leases and PPAs but limited to onsite
generation only, so competitive community solar will require additional legislation.
 NORTH CAROLINA: Solar leases have not been clarified as legal, and PPAS are viewed by
the NCUC as illegal, so this extends to community solar as well. Recent bill in legislature
(“Energy Freedom Act”) that would permit third party solar PPAS but limited to onsite
generation died last year.
 SOUTH CAROLINA: Solar leasing authorized under SC Solar Act, for onsite generation; Act
236, the South Carolina Distributed Energy Resource Act, passed unanimously by the South
Carolina General Assembly and signed by governor in 2014; DER settlement requires SC
investor-owned utilities to offer residential and small commercial rooftop solar incentive
programs, along with community solar programs for residential customers.
 VIRGINIA: Dominion pilot program permits PPAs, but it is only available to certain customers
and does not extend to community solar projects.
 ALABAMA: Solar leases and PPAs have not been clarified as legal, so this extends to
community solar as well.
 TENNESSEE: Solar leases and PPAs have not been clarified as legal, so this extends to
community solar as well.

4. Challenges in the Southeast
Legalizing Third-Party Competition: Extending authority to non-utility third parties to enter
Community Solar programs with utility customers.
 Do we advocate for free market competition in the community solar arena?
 Utilities are vehemently against competition in this arena because competitive community solar allows off-site
generation and sales.
 Also, arguably, utilities are better suited to the role of community solar developer/administrator because of
existing relationship with customers and central importance of their participation in giving bill credits to
participants.
 But third party developers have show interest and expertise in community solar projects in states where virtual
meeting and competitive community solar has been legislatively enacted.
 Expanding to third parties expands the available capital and, thus, scale of community solar.
Rate treatment for residential solar systems connected to the grid: Determining what
rate and crediting policy is best to ensure that community solar subscribers are justly
compensated for the excess energy they send back to the utility’s grid and that the utility
recovers the full cost of serving solar subscribers. Options: Avoided Cost, Flat Credit, Net
Metering, Value of Solar.
Funding for Community Solar Programs: Determining what federal and/or state funding
streams are available for the projects to make the projects cost competitive and financially
feasible to implement.

5. Potential Solutions in the Southeast
Considerations for Utility-Sponsored Community Solar:
 Project Development and Ownership
 Bill crediting and Customer Benefits
 Establishing requirements for participation
 Determining the value of solar for crediting purposes (NEM, VOS, etc.)
 In states where we have residential/commercial NEM (NC, SC, VA), a NEM-like approach may be
feasible
 In states were we don’t have NEM (TVA, GA, AL), a value of solar approach may be more feasible
 Treatment of RECs
 Enabling low-income access (carve-outs, no upfront costs, etc.)
 Marketing and encouraging customer participation
 Transferability and portability of subscriptions
Leverage existing funding sources to make solar cost competitive:
 Federal and state tax credits, deductions, incentives. E.g. Low Income Housing Tax Credit, Brownfields
Expensing Tax Incentive, etc.
 State and federal programs that provide financing for solar and existing programs that encourage
renewable energy development and energy efficiency. E.g. Energy Efficiency and Conservation Loan
Program, EPA Brownfields Siting Incentives, HUD Community Development Block Grant Program, LIHEAP
and WAP, TVA Solar Solutions Initiative, etc.
Permit third parties to engage customers in community solar programs:
 1) Pass legislation clarifying that third party entities are not electric utilities under state law and therefore not
infringing upon utilities’ monopoly rights; 2) require utilities to give customers credit on their utility bills for
their investments in community solar

6. Positive Outlook
South Carolina (example legislation)
 DER legislation
 Implemented in 2015
 Requires SCE&G and Duke to install rooftop and utility scale solar generation
 Requires utilities to promote solar leasing
 Includes net metering guidelines for utilities
North Carolina (example community solar projects)
 Pee Dee PNC Co-op Community Solar Farm
 In 2015, first electric cooperative in North Carolina to begin using solar power with its Community
Solar Farm.
 Members can purchase the rights to the output from up to 15 panels. Participants receive a credit on their electric bill for their pro rata
share of the output of the solar farm. Pee Dee Electric maintains the panels, eliminating a costly burden for the member.
 Roanoke Electric Co-op Community Solar
 Launched in 2015. Members purchase the energy output from solar panels for a one-time
investment of $456. Roanoke builds and covers all maintenance costs. The energy produced by
the panels is credited to participants on their monthly bills.
 Piedmont Electric Co-op Community Solar
 Two solar fields: one each in Roxboro and Caswell. The solar fields have over 1,800 panels, which
can generate up to 3,000 kWhs of electricity each day, enough to power 70 average American
homes for a day. Members may subscribe up to a maximum of 15 solar panels and receive
monthly on-bill credit.