Community Solar Proposal - 2015-2018
Based on the significant interest generated by the 2014 Solarize program (see below), the City has researched another clean energy project that would lower the Island's carbon footprint and offer a way for even more residents to support solar. A large solar installation proposed for the roof of City Hall is getting closer to becoming a reality, and interest is building among Islanders.
"Community Solar" projects provide a way for residents to support solar, even if they don't have a suitable location on their own property. Several such projects have recently been completed by Seattle City Light, and there are many other examples across the state. By contributing the upfront funds to install the project (generally about half the cost of a personal installation), each participant becomes an owner-investor, and is paid by the state -- at a rate of $1.08/kilowatt-hour back in 2015-- for the energy produced by the array. This is double the rate paid for residential installations.
Annual production estimates are approximately 80,000 kilowatt-hours for the full-sized installation, and each investor is expected to see an annual return on investment of 5-15%, depending on their personal tax situation (though we cannot guarantee a specific return, or the State payment rate). The City would receive the electrical power, while the production incentives would flow to the investors that helped pay upfront for the construction of the project.
The 273-panel, 75 kilowatt array has been deemed technically feasible after experts assessed roof condition and lifespan, and explored the necessary electrical connections. By comparison, the City's demonstration solar array at the Community Center is 4.4 kilowatts in size.
Good news! The City found enough investor participants to build the full-size project, and registration closed in late summer 2015. Note: Investors must be WA residents.
Project Updates
- Nov 2015: Due to State limits on the amount of solar funds available to our Utility (PSE), we are now waiting until early 2016 to assess the recalculated financials of the project.
- Apr 2016: Solar advocates were hoping that a bill in the State Legislature would have raised the cap on production incentives available to solar projects. That bill did not pass, and therefore the rate of return on solar projects will start to drop this summer. We are in a holding pattern at this time, pending further revisions in the State program.
- Dec 2017: Earlier in 2017, rates of return on community solar projects were still depressed due to the finite size of the funding pool available and the large number of applicants. However, a revised solar incentives bill finally passed the State Legislature's extended session in early July 2017. This new legislation lowers Community Solar incentives from the previous maximum of $1.08/kwh to 21c/kwh in 2018, dropping in steps down to just 12c/kwh by 2021. The City is currently exploring if these far lower rates pencil out for prospective investors.
- Jan 2019: The state solar incentive program temporarily closed enrollment for Community Solar projects; awaiting additional funds from the State Legislature with additional funds. At this time, the economics do not pencil out for a City project.
- Dec 2019: PSE announced that it will no longer accept any new public community solar project applications because all solar incentive funds have been allocated 2 years earlier than expected, due to very high levels of interest. Islanders still wishing to support the community solar concept do have an option to buy into projects being built by PSE itself, or pay for solar energy offsets via the Solar Choice program.
