Solar power is on the precipice of a major transformation. The U.S. Environmental Protection Agency just released details of the $7 billion Zero-Emissions Technology Fund, a program created by the Inflation Reduction Act (IRA) that will give out around 60 competitive grants to states, tribes, municipalities, and eligible nonprofit entities to build residential rooftop solar, community solar and storage in low-income and disadvantaged communities. These funds will allow distributed energy to go to new places. People who cannot afford solar panels, or who do not have the space to install panels, or rent and do not have the option, can subscribe to a community solar project where they buy the output of a solar array placed in their community.
For context on just how much this program will exponentially boost community solar, in 2022 the amount of investment by developers into community solar totaled $1.3 billion, according to Wood Mackenzie.
But in many states, community solar faces legal and regulatory roadblocks. Communities in those states are likely to be at a big disadvantage when competing for billions in grants from the Zero-Emissions Fund. Michigan is, unfortunately, one of those states. To avoid this big missed opportunity, lawmakers need to take advantage of the current momentum in Lansing to pass legislation that would create a path forward for far more community solar.
GO DEEPER: Renewable Properties founder and president Aaron Halimi joined Episode 33 of the Factor This! podcast to discuss the future of community solar in California which, to date, has lagged behind other markets, despite the state’s role as a leader of the energy transition. Subscribe wherever you get your podcasts.
Fortunately, bills that would do exactly that were just introduced into the Michigan legislature by state Sens. Jeff Irwin (D-Ann Arbor) and Ed McBroom (R-Waucedah Township). This bipartisan legislation consists of two bills: SB 152 would require the Michigan Public Service Commission (MPSC) to issue new regulations ensuring all customers have opportunities to participate as subscribers to a community solar facility, among other provisions. No less than 30% of the electricity produced by each community solar facility would be reserved for low-income households and service organizations. Meanwhile, SB 153 would establish rules for those customers to receive proportional bill credits for the output of the community solar facilities to which they sub
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