NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. Free download available at www.solaramericacommunities.energy.gov Available electronically at www.osti.gov/bridge Available for a processing fee to U.S. Department of Energy and its contractors, in paper, from: U.S. Department of Energy Office of Scientific and Technical Information P.O. Box 62 Oak Ridge, TN 37831-0062 phone: 865.576.8401 fax: 865.576.5728 e-mail: [email protected] Available for sale to the public, in paper, from: U.S. Department of Commerce National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 phone: 800.553.6847 fax: 703.605.6900 e-mail: [email protected] online ordering: www.ntis.gov/ordering.htm Printed on paper containing at least 50% wastepaper, including 10% post consumer waste. b Solar Powering Your Community: A Guide for Local Governments | January 2011 Acknowledgments DOE funded the development of this guide through the Solar Market Transformation subprogram. The guide represents a collaborative effort among multiple solar market transformation partners. DOE would like to thank the following organizations for their invaluable contributions to writing and reviewing this guide. • California Center for Sustainable Energy (http://energycenter.org) • CH2M HILL (www.ch2m.com/corporate) • Critigen (www.critigen.com) • Florida Solar Energy Center (www.fsec.ucf.edu/en) • Interstate Renewable Energy Council (www.irecusa.org) • Lawrence Berkeley National Laboratory (www.lbl.gov) • National Renewable Energy Laboratory (www.nrel.gov) • Network for New Energy Choices (www.newenergychoices.org) • North Carolina Solar Center (www.ncsc.ncsu.edu) • Oak Ridge National Laboratory (www.ornl.gov) • Sandia National Laboratories (www.sandia.gov) • Solar Electric Power Association (www.solarelectricpower.org) • Southwest Technology Development Institute (www.nmsu.edu/~tdi) • Vote Solar Initiative (www.votesolar.org) Much of the information included in this report is from the Database of State Incentives for Renewables & Efficiency (DSIRE,www.dsireusa.org ), a public resource funded by DOE. The database is a product of the ongoing efforts of the North Carolina Solar Center in partnership with the Interstate Renewable Energy Council (IREC). DOE thanks all organizations that contributed staff time and resources for writing and reviewing the implementation examples, which describe work undertaken in communities across the nation, including DOE’s 25 partner Solar America Cities (see www.solaramericacities.energy.gov for a list). The department also thanks local government staff and partnering organizations for their ongoing efforts to integrate solar energy into their respective communities. The additional references and resources in this guide are the result of the efforts of numerous organizations that are leading solar market transformation across the country; DOE thanks these organizations for accelerating the adoption of solar energy in the United States. Solar Powering Your Community: A Guide for Local Governments | January 2011 i ii Solar Powering Your Community: A Guide for Local Governments | January 2011 EXECUTIVE SUMMARY As demand for energy increases, many communities are seeking ways to meet this demand with clean, safe, reliable energy from renewable sources such as sun and wind. Fortunately, many of the key technologies that can unlock the power of these renewable resources are available on the market today. While the U.S. Department of Energy (DOE) continues to fund research and development (R&D) to improve solar technologies, DOE is also focusing on accelerating a robust nationwide market for the currently available technologies. Development of a nationwide market requires overcoming barriers to widespread adoption of solar energy technologies. These barriers include complicated procedures for permitting and connecting systems to the grid, financing challenges, a lack of awareness of solar energy solutions among key decision makers, and a lack of trained installation contractors. Local governments are uniquely positioned to remove many of these barriers, clearing the way for solar markets to thrive in their locales. Representatives of local governments who understand and prepare for policy and market changes can optimally position their communities in the emerging renewable energy economy. To accelerate the nationwide adoption of solar energy, DOE established partnerships with 25 “Solar America Cities” around the United States. Local organizations and policy makers in each Solar America City are taking a comprehensive approach to bringing solar to their cities. Their work lays the foundation for a viable solar market and offers a model for other communities to follow. As a result of the progress made in the 25 Solar America Cities, in 2010 DOE announced a new effort to share the best practices developed with thousands of local governments across the nation. As part of this evolution, DOE created a broader program called Solar America Communities to reflect the intention to promote solar market development within cities, counties, and all other local jurisdictions. Solar Powering Your Community: A Guide for Local Governments is a comprehensive resource DOE created to assist local governments and stakeholders in designing and implementing a strategic local solar plan. This guide includes examples and models that have been field-tested in cities and counties around the country. Many of the examples are the direct result of DOE’s Solar America Communities program. This guide can help stimulate ideas or provide a framework for a comprehensive solar plan for a community. Each section is divided into topic areas—typically within the jurisdiction of local governments—that are integral in creating and supporting local solar markets. Each topic area includes: • An introduction that describes the policy or program and states its purpose • Information on benefits of implementing the policy or program • Tips and options for designing and implementing the policy or program • Examples that highlight experiences from communities that have successfully implement- ed the policy or program; and additional reports, references, and tools that can offer more information on the topic. Solar Powering Your Community: A Guide for Local Governments | January 2011 iii DOE recognizes that there is no one path to solar market development, so this guide introduces a range of policy and program options that can help a community build a sustainable solar infrastructure. DOE doesn’t imply that a community must undertake all of these activities; instead, community leaders should tailor their approach to fit their community’s particular needs and market barriers. This second edition of the guide was updated to include new market developments and innovations for advancing local solar markets that have emerged since the first edition was released in 2009. DOE plans to continually revise and improve the content as new strategies arise for moving solar energy into the mainstream. Comments and suggestions are welcomed and can be submitted at [email protected]. The entire guide can be downloaded from www.solaramericacommunities.energy.gov. iv Solar Powering Your Community: A Guide for Local Governments | January 2011 TABLE OF CONTENTS Introduction ..................................................................... 1 Getting Started: Assessing A Community’s Policy Environment ...................... 3 1.0 Organizing and Strategizing A Local Solar Effort ............................... 5 1.1 Create a Solar Advisory Committee or Task Force .................................. 6 1.2 Hire or Designate a Local Solar Coordinator ...................................... 8 1.3 Survey Residents and Businesses To Identify Barriers ............................... 10 1.4 Conduct an Installation Baseline Survey .......................................... 13 1.5 Establish Solar Installation Targets .............................................. 16 1.6 Include Solar in Broader City, County, or Regional Planning Efforts ................... 20 2.0 Making Solar Affordable for Residents and Businesses .......................... 23 2.1 Renewable Portfolio Standards ................................................. 25 2.2 Cash Incentives ............................................................. 28 2.3 Feed-In Tariffs .............................................................. 33 2.4 Third-Party Residential Financing Models ........................................ 37 2.5 Property Assessed Clean Energy Financing ....................................... 41 2.6 Low-Interest Loans .......................................................... 46 2.7 Group Purchasing