Some locations are not conducive to solar generation due to shading, structure orientation, or other reasons. Historically, this issue has created an opportunity for developers and their financial backers to offer those who have been shut out a chance to buy into large-scale community solar projects. Unfortunately, regressive federal and state policy changes have contributed to disincentivizing the development of these large group ownership models.
The two main policy disincentives are the elimination of the Federal Income Tax Credit and New Hampshire’s significant reimbursement rate reduction for exported solar-generated electricity implemented in the change from Net Energy Metering or NEM 1.0 to 2.0. In addition to these financial disincentives and general policy instability, the complexity and lengthy timelines associated with large-scale project development are also barriers.
There is a ray of hope. Two idiosyncrasies that exist in New Hampshire’s solar rules allow for some optimism. Older residential photovoltaic systems installed when NEM 1.0 was in place allow for a nearly full retail reimbursement rate (through 2040), which is significantly higher than NEM 2.0, and NEM 1.0 systems are expandable up to 100 kilowatts AC. This is an enormous increase in system capacity when most NEM 1.0 systems constructed were only 4 or 5 kW AC.
Combine an expanded NEM 1.0 system with group net metering, and you have a viable path to expand solar in New Hampshire and to accomplish community power sites at a manageable cost. The implementation of multiple locally organized community solar projects, as described, can be a viable way to decrease electricity costs for consumers and businesses even in today’s political environment.
Peterborough resident Greg Blake is the owner of South Pack Solar in Peterborough.