Energy Department Sets 2021 Community Solar Target to Power 5 Million Homes
2025 Milestone Will Play a Key Role in Achieving Justice40 Goals and Create $1 Billion in Energy Savings
WASHINGTON, D.C. — The U.S. Department of Energy (DOE) today announced a new National Community Solar Partnership (NCSP) target: to enable community solar systems to power the equivalent of five million households by 2025 and create $1 billion in energy bill savings. Reaching these milestones will help achieve the Biden-Harris Administration’s goals of achieving 100% clean electricity by 2035 and ensure that all Americans can reap the benefits of renewable energy while building community wealth and resiliency.
“Community solar is one of the most powerful tools we have to provide affordable solar energy to all American households, regardless of whether they own a home or have a roof suitable for solar panels,” said Secretary Jennifer M. Granholm. “Achieving these ambitious targets will lead to meaningful energy cost savings, create jobs in these communities, and make our clean energy transition more equitable.”
There is enough solar installed to power 19 million households across the United States. Despite this unprecedented deployment, many Americans still lack access to affordable solar electricity, including many renters, homeowners who lack affordable financing options, and those without suitable roof conditions. Community solar is a form of energy generation where members subscribe to a portion of a solar array, usually located near their community. As the solar array produces energy, subscribers receive a portion of the revenue from the energy produced, typically as savings on their monthly electric bill — a critical factor for low-income and disadvantaged communities whose energy burden is three times higher than for non-low-income households.
There is enough community solar installed in the U.S. today to power 600,000 households—achieving DOE’s new NSCP target would mean an increase of more than 700% in the next four years. The recently released Solar Futures Study report from DOE and National Renewable Energy Laboratory shows how solar can play a major role in a decarbonized grid.
The NCSP is a DOE initiative led by the Solar Energy Technologies Office, in collaboration with the NREL and Lawrence Berkeley National Laboratory. The partnership includes a coalition of community solar stakeholders, such as state, local and tribal governments, solar developers, and community-based organizations, working to expand access to affordable community solar to every American household. Partners leverage peer networks as well as technical assistance funding and resources to overcome the persistent barriers to expanding community solar access with a focus on those in underserved communities. As of September 2021, NCSP had over 650 members from over 440 partner organizations.
The Sharing the Sun report released by NREL in collaboration with NCSP shows that community solar can lead to substantial bill savings—from 5 to 25%. Achieving $1 billion in cost savings would mean that, on average, community solar projects would provide a 20% bill savings. This target, along with other potential solutions for equitable community solar deployment, was informed by NCSP stakeholders in a recent request for information.
To achieve these new targets, DOE is offering free, on-demand technical assistance to NCSP partnership members. Technical assistance provides personalized support to organizations deploying community solar to help them accelerate implementation, improve the performance of their program or project, and build capacity for future community solar development. NCSP has already distributed $1 million for technical assistance and hopes to provide $2 million in the next year.
Learn more about NCSP and join the partnership.