Community Solar for Opportunity States: An exploration of development models for community solar projects in states that lack explicit enabling policies

This report identifies and analyzes alternative models for developing community solar projects in states lacking enabling policies, what we call “opportunity states.”

Background:

• Traditional community solar models rely on third-party ownership and subscription-based benefits delivered through virtual net metering (VNEM).
• Opportunity states often lack the regulatory framework to support these models, hindering community solar development.

Key Findings:

• This report explores three alternative models for opportunity states:
  • Community Benefit Funds: Solar energy is converted to cash and distributed to beneficiaries (e.g., low-income energy assistance programs).
  • Cooperative Ownership Model: A member-owned cooperative develops and owns the solar project, with members receiving benefits through dividends.
  • Project Configuration & Technology: Projects are reconfigured or utilize new technologies to deliver benefits within existing net metering rules (e.g., solutions for multifamily buildings).