Community solar is experiencing significant growth, presenting compelling opportunities for project developers and Engineering, Procurement, and Construction (EPC) firms. The innovative approach to solar energy continues gaining momentum across the United States, offering a unique blend of financial, environmental, and social benefits.

Community solar projects hit a sweet spot for competitive solar. These sites capture economies of scale and deliver power locally to individuals or households subscribed to the solar garden while receiving credits on their electricity bills. As supportive policies expand to more states and the industry continues to innovate, community solar is poised to play an increasingly important role in the transition to clean energy.

For project developers and EPCs using the right PV technology and a total solar solution, this growing market segment offers significant opportunities to contribute to a more equitable and sustainable energy future while also pursuing profitable ventures.

Community Solar Market Growth and Potential

The community solar segment installed 279 MWdc in Q1 2024, maintaining the same level as Q1 2023. The overall outlook remains positive, with the national market expected to grow 4% in 2024, exceeding 1.3 GWdc of annual capacity and averaging 5% annually through 2026.

Looking ahead, Wood Mackenzie forecasts cumulative US community solar installations to break 14 GWdc in existing state markets by 2028. This projection includes 7.6 GWdc of new community solar coming online between 2024 and 2028, with the national market expected to surpass 10 GWdc of cumulative capacity by 2026.

Mature and expanding state markets are driving this growth, with New York, Minnesota, Illinois, Colorado, and Virginia leading the charge. However, the industry's expansion is currently limited because only 19 states and the District of Columbia have enacted supportive policies.

Evolving Community Solar Policy and Regulatory Landscape

The majority of states that have enacted legislation enabling or requiring community solar have included provisions to address low-income participation.

The Inflation Reduction Act (IRA) should substantially boost the community solar sector with investments that could contribute to the development of 400 community solar projects nationwide.

At the same time, the policy environment for community solar continues evolving, with several states making significant strides in 2023:

• New Jersey established a permanent community solar program

• Minnesota carved out 30% of community solar capacity for low- and middle-income residents

• Oregon and New Mexico also expanded their programs

Enable Equitable Solar Access

One of the more under-discussed advantages of community solar is its ability to democratize access to solar energy. Recent research from Lawrence Berkeley National Laboratory demonstrates that community solar adopters are:

• 6.1 times more likely to live in multifamily buildings

• 4.4 times more likely to rent

• Earn 23% less than rooftop solar adopters, on average

This data underscores community solar's potential to reach a more diverse demographic, particularly regarding housing type and tenure. The share of community solar capacity serving residential customers is increasing rapidly, with the proportion serving low- to moderate-income (LMI) subscribers growing from 2% in H2 2022 to 10% in H2 2023.

Community Solar Value Beyond LCOE 

At the end of the day, developers and EPCs must focus on a project’s bottom line: the levelized cost of electricity (LCOE), return on investment (ROI), and payoff period. If these numbers don’t pencil out, a project can quickly become dead on arrival.

However, solar projects, including community solar installations, also produce health benefits equivalent to billions of dollars annually. A recent report found that solar generation provided $11.6 billion in health benefits in 2022 alone by preventing emissions of CO2, SO2, and NOx.

A Total Community Solar Solution

As noted, LCOE, ROI, and payoff periods can make or break a potential community solar project. Since these installations are typically located in populated areas, siting options often have space restrictions, limiting the number of modules that can fit, the system’s lifetime power generation capacity, and the project’s potential approval.

So, how can we leverage community solar's intangible benefits if it’s challenging to make the numbers work for a project?

There are actually a few options.

Developers and EPCs operating in the community solar sector or those seeking to enter this market and join the multi-megawatt club should consider using a total solar solution like TrinaPro C&I Solutions along with Vertex N modules.

TrinaPro C&I Solutions gives developers and EPCs access to a one-stop solar shop that bundles major system components from a single supplier. Not only does this method streamline the procurement process, but it also ensures optimized interoperability, mitigates installation risks, and delivers peak PV system performance. 

With Vertex N’s ultra-high power and efficiency, developers and EPCs can use fewer modules than traditional PERC cells or 182mm cell modules while generating the same amount of energy.

Collectively, these benefits significantly reduce soft costs, Bill of Material (BOM) costs, and Balance of System (BOS) costs for lower overall project LCOE.

Interested in the benefits of Vertex N and the TrinaPro total solar solution for lowering community solar LCOE? Reach out to our local team of experts today!