Indonesia caps coal exports to ensure power supply

CCUS in the U.S. Power Sector drives investments as DOE grants, 45Q tax credits, and EPA carbon rules spur carbon capture, geologic storage, and utilization, while debates persist over costs, transparency, reliability, and emissions safeguards.

Key Points

CCUS captures CO2 from power plants for storage or use, backed by 45Q tax credits, DOE funding, and EPA carbon rules.

✅ DOE grants and 45Q credits aim to de-risk project economics.

✅ EPA rules may require capture rates to meet emissions limits.

✅ Transparency and MRV guard against tax credit abuse.

New public and private funding, including DOE $110M for CCUS announced recently, and expected strong federal power plant emissions reduction standards have accelerated electricity sector investments in carbon capture, utilization and storage,’ or CCUS, projects but some worry it is good money thrown after bad.

CCUS separates carbon from a fossil fuel-burning power plant’s exhaust through carbon capture methods for geologic storage or use in industrial and other applications, according to the Department of Energy. Fossil fuel industry giants like Calpine and Chevron are looking to take advantage of new federal tax credits and grant funding for CCUS to manage potentially high costs in meeting power plant performance requirements, amid growing investor pressure for climate reporting, including new rules, expected from EPA soon, on reducing greenhouse gas emissions from existing power plants.

Power companies have “ambitious plans” to add CCUS to power plants, estimated to cause 25% of U.S. CO2 emissions. As a result, the power sector “needs CCUS in its toolkit,” said DOE Office of Fossil Energy and Carbon Management Assistant Secretary Brad Crabtree. Successful pilots and demonstrations “will add to investor confidence and lead to more deployment” to provide dispatchable clean energy, including emerging CO2-to-electricity approaches for power system reliability after 2030,| he added.

But environmentalists and others insist potentially cost-prohibitive CCUS infrastructure, including CO2 storage hub initiatives, must still prove itself effective under rigorous and transparent federal oversight.

“The vast majority of long-term U.S. power sector needs can be met without fossil generation, and better options are being deployed and in development,” Sierra Club Senior Advisor, Strategic Research and Development, Jeremy Fisher, said, pointing to carbon-free electricity investments gaining momentum in the market. CCUS “may be needed, but without better guardrails, power sector abuses of federal funding could lead to increased emissions and stranded fossil assets,” he added.

New DOE CCUS project grants, an increased $85 per metric ton, or tonne, federal 45Q tax credit, and the forthcoming EPA power plant carbon rules and the federal coal plan will do for CCUS what similar policies did for renewables, advocates and opponents agreed. But controversial past CCUS performance and tax credit abuses must be avoided with transparent reporting requirements for CO2 capture, opponents added.

Related News

• Electricity Forum News

• Climate Change News

Nunavut electricity rate increase sees QEC raise domestic electricity rates 6.6% over two years, affecting customer rates, base rates, subsidies, and kWh overage charges across communities, with public housing exempt and territory-wide pricing denied.

Key Points

A 6.6% QEC hike over 2018-2019, affecting customer rates, subsidies, and kWh overage; public housing remains exempt.

✅ 3.3% on May 1, 2018; 3.3% on Apr 1, 2019

✅ Subsidy caps: 1,000 kWh Oct-Mar; 700 kWh Apr-Sep

✅ Territory-wide base rate denied; public housing exempt

Ahead of the Nunavut government's approval of the general rate increase for the Qulliq Energy Corporation, many Nunavummiut wondered how the change would impact their electricity bills.

QEC's request for a 6.6-per-cent increase was approved by the government last week. The increase will be spread out over two years, a pattern similar to BC Hydro's two-year rate plan, with the first increase (3.3 per cent) effective May 1, 2018. The remaining 3.3 per cent will be applied on April 1, 2019.

Public housing units, however, are exempt from the government's increase altogether.

The power corporation also asked for a territory-wide rate, so every community would pay the same base rate (we'll go over specific terms in a minute if you're not familiar with them). But that request was denied, even as Manitoba Hydro scaled back increases next year, and QEC will now take the next two years reassessing each community's base rate.

#google#

So, what does this mean for your home's power bill? Well, there's a few things you need to know, which we'll get to in a second.

But in essence, as long as you don't go over the government-subsidized monthly electricity usage limit, you're paying an extra 3.61 cents per kilowatt hour (kWh).

To be clear, we're talking about non-government domestic rates — basically, private homeowners — and those living in a government-owned unit but pay for their own power.

The basics

First, some quick terminology. The "base rate" term we're going to use (and used above) in this story refers to the community rate. As in, what QEC charges customers in every community. The "customer rate" is the rate customers actually pay, after the government's subsidy.

The first thing you need to know is everyone in Nunavut starts off by paying the same customer rate, unlike jurisdictions using a price cap to limit spikes.

That's because the government subsidizes electricity costs, and that subsidy is different in every community, because the base rate is different.

For example, Iqaluit's new base rate after the 3.3 per cent increase (remember, the 6.6 per cent is being applied over two years) is 56.69 cents per kWh, while Kugaaruk's base rate rose to 112.34 cents per kWh. Those, by the way, are the territory's lowest and highest respective base rates.

However, customers in both Iqaluit and Kugaaruk will each now pay 28.35 cents per kWh because, remember, the government subsidizes the base rates in every community.

Now, remember earlier we mentioned a "government-subsidized monthly electricity usage limit?" That's where customers in various communities start to pay different amounts.

As simply as we can explain it, the government will only cover so much electricity usage in a month, in every household.

Between October and March, the government will subsidize the first 1,000 kilowatt hours, and only 700 kilowatt hours from April to September. QEC says the average Nunavut home will use about 500 kilowatt hours every month over the course of a year.

But if your household goes over that limit, you're at the mercy of your community's base rate for any extra electricity you use. Homes in Kugaaruk in December, for instance, will have to pay that 122.34 cents for every extra kilowatt hour it uses, while homes in Iqaluit only have to pay 56.69 cents per kWh for its extra electricity.

That's where many Nunavummiut have criticized the current rate structure, because smaller communities are paying more for their extra costs than larger communities.

QEC had hoped — as it had asked for — to change the structure so every community pays the same base rate. So regardless of if people go over their electricity usage limits for the government subsidy, everyone would pay the same overage rates.

But the government denied that request.

New rate is actually lower

The one thing we should highlight, however, is the new rate after the increase is actually lower than what customers were paying in 2014.

For the past seven months, customers have been getting power from QEC at a discount, whereas Newfoundland customers began paying for Muskrat Falls during the same period, to different effect.

That's because when QEC sets its rates, it does so based on global oil price forecasts. Since 2014, the price of oil worldwide has slumped, and so QEC was able to purchase it at less than it had anticipated.

When that happens, and QEC makes more than $1 million within a six month period thanks to the lower oil prices, it refunds the excess profits back to customers through a discount on electricity base rates — a mechanism similar to a lump-sum credit used elsewhere — the government subsidy, however, doesn't change so the savings are passed on directly to customers.

Now, the 6.6 per cent increase to electricity rates, is actually being applied to the discounted base rate from the last seven months.

So again, while customers are paying more than they have been for the last seven months, it's lower than what they were paying in 2014.

Lastly, to be clear, all the figures used in this story are only for domestic non-government rates. Commercial rates and changes have not been explored in this story, given the differences in subsidy and rate application.

Related News

• Electricity Forum News

• Energy Policy News

U.S. Wind Power 2025 drives record capacity additions, with FERC data showing robust renewable energy growth, IRA incentives, onshore and offshore projects, utility-scale generation, grid integration, and manufacturing investment boosting clean electricity across key states.

Key Points

Overview of record wind additions, IRA incentives, and grid expansion defining the U.S. clean electricity mix in 2025.

✅ FERC: 30.1% of new U.S. capacity in Jan 2025 from wind

✅ Major projects: Cedar Springs IV, Boswell, Prosperity, Golden Hills

✅ IRA incentives drive onshore, offshore builds and manufacturing

In early 2025, wind power has significantly strengthened its position in the United States' electricity generation portfolio. According to data from the Federal Energy Regulatory Commission (FERC), wind energy accounted for 30.1% of the new electricity capacity added in January 2025, and as the most-used renewable source in the U.S., it also surpassed the previous record set in 2024. This growth is attributed to substantial projects such as the 390.4 MW Cedar Springs Wind IV and the 330.0 MW Boswell Wind Farm in Wyoming, along with the 300.0 MW Prosperity Wind Farm in Illinois and the 201.0 MW Golden Hills Wind Farm Expansion in Oregon. 

The expansion of wind energy capacity is part of a broader trend where solar and wind together accounted for over 98% of the new electricity generation capacity added in the U.S. in January 2025. This surge is further supported by the federal government's Inflation Reduction Act (IRA) and broader policy support for renewables, which has bolstered incentives for renewable energy projects, leading to increased investments and the establishment of new manufacturing facilities. 

By April 2025, clean electricity sources, including wind and solar, were projected to surpass 51% of total utility-scale electricity generation in the U.S., building on a 25.5% renewable share seen in recent data, marking a significant milestone in the nation's energy transition. This achievement is attributed to a combination of factors: a seasonal drop in electricity demand during the spring shoulder season, increased wind speeds in key areas like Texas, and higher solar production due to longer daylight hours and expanded capacity in states such as California, Arizona, and Nevada, supported by record installations across the solar and storage industry. 

Despite a 7% decline in wind power production in early April compared to the same period in 2024—primarily due to weaker wind speeds in regions like Texas—the overall contribution of wind energy remained robust, supported by an 82% clean-energy pipeline that includes wind, solar, and batteries. This resilience underscores the growing reliability of wind power as a cornerstone of the U.S. electricity mix. 

Looking ahead, the U.S. Department of Energy projects that wind energy capacity will continue to grow, with expectations of adding between 7.3 GW and 9.9 GW in 2024, and potentially increasing to 14.5 GW to 24.8 GW by 2028. This growth is anticipated to be driven by both onshore and offshore wind projects, with onshore wind representing the majority of new additions, continuing a trajectory since surpassing hydro capacity in 2016 in the U.S.

Early 2025 has witnessed a notable increase in wind power's share of the U.S. electricity generation mix. This trend reflects the nation's ongoing commitment to expanding renewable energy sources, especially after renewables surpassed coal in 2022, supported by favorable policies and technological advancements. As the U.S. continues to invest in and develop wind energy infrastructure, the role of wind power in achieving a cleaner and more sustainable energy future becomes increasingly pivotal.

Related News

• Electricity Forum News

• Renewable Energy News

COVID-19 Energy Burden drives higher electricity bills as income falls, intensifying energy poverty, utility shut-offs, and affordability risks for low-income households; policy moratoriums, bill relief, and efficiency upgrades are vital responses.

Key Points

The COVID-19 energy burden is the rising share of income spent on energy as bills increase and earnings decline.

✅ Rising home demand and lost wages increase energy cost share.

✅ Mandated shut-off moratoriums and reconnections protect health.

✅ Fund assistance, efficiency, and solar for LMI households.

I have asthma. It’s a private piece of medical information that I don’t normally share with people, but it makes the potential risks associated with exposure to the coronavirus all the more dangerous for me. But I’m not alone. 107 million people in the U.S. have pre-existing medical conditions like asthma and heart disease; the same pre-existing conditions that elevate their risk of facing a life-threatening situation were we to contract COVID-19. There are, however, tens of millions more house-bound Americans with a condition that is likely to be exacerbated by COVID-19: The energy burden.

The energy burden is a different kind of pre-existing condition:
In the last four weeks, 22 million people filed for unemployment. Millions of people will not have steady income (or the healthcare tied to it) to pay rent and utility bills for the foreseeable future which means that thousands, possibly millions of home-bound Americans will struggle to pay for energy.

Your energy burden is the amount of your monthly income that goes to paying for energy, like your monthly electric bill. So, when household energy use increases or income decreases, your energy burden rises. The energy burden is not a symptom of the pandemic and the economic downturn; it is more like a pre-existing condition for many Americans.

Before the coronavirus outbreak, I shared a few maps that showed how expensive electricity is for some. The energy burden in most pronounced in places already struggling economically, like in Appalachia, where residents in some counties must put more than 30 percent of their income toward their electric bills, and in the Midwest where states such as Michigan have some families spending more than 1/5 of their income on energy bills. The tragic facts are that US families living below the poverty line are far more likely to also be suffering from their energy burden.

But like other pre-existing conditions, the impacts of the coronavirus pandemic are exacerbating the underlying problems afflicting communities across the country.

Critical responses to minimize the spread of COVID-19 are social distancing, washing hands frequently, covering our faces with masks and staying at home. More time at home for most will drive up energy bills, and not by a little. Estimates on how much electricity demand during COVID-19 will increase vary but I’ve seen estimates as high as a 20% increase on average. For some families that’s a bag of groceries or a refill on prescription medication.

What happens when the power gets turned off?
Under normal conditions, if you cannot pay your electric bill your electricity can get turned off. This can have devastating consequences. Most states have protections for health and medical reasons and some states have protections during extreme heat or cold weather. But enforcement of those protections can vary by utility service area and place unnecessary burdens on the customer.

UCS
Only Florida has no protections of any kind against utility shut-offs when health or medical reasons would merit protection against it. However, when it comes to protection against extreme heat, only a few states have mandatory protections based on temperature thresholds.

The NAACP has also pointed out that utilities have unceremoniously disconnected the power of millions of people, disproportionally African-American and Latinx households.

April tends to be a mild month for most of the country, but the South already had its first heat wave at the end of March. If this pandemic lasts into the summer, utility disconnects could become deadly, and efforts to prevent summer power outages will be even more critical to public health. In the summer, during extreme summer heat families can’t turn off the A/C and go to the movies if we are following public health measures and sheltering in place. Lots of families that don’t have or can’t afford to run A/C would otherwise gather at local community pools, beaches, or in cooling centers, but with parks, pools and community groups closed to prevent the virus’s spread, what will happen to these families in July or August?

But we won’t have to wait till the summer to see how families will be hard hit by falling behind on bills and losing power. Here are a few ways electricity disconnection policies cause people harm during the pandemic:

Loss of electricity during the COVID-19 pandemic means families will lose their ability to refrigerate essential food supplies.
Child abuse guidance discusses how unsanitary household conditions are a contributing factor to child protective services involvement. Unsanitary household conditions can include, for example, rotting food (which might happen if electricity is cut off).

HUD’s handbook on federally subsidized housing includes a chapter on termination, which says that lease agreements can be terminated for repeated minor infractions including failing to pay utilities.
Airway machines used to treat respiratory ailments—pre-existing conditions in this pandemic—will not work. Our elderly neighbors in particular might rely on medicine that requires refrigeration or medical equipment that requires electricity. They too have fallen victim to utility shut-offs even during the pandemic.

Empowering solutions are available today

Decisionmakers seeking solutions can look to implement utility shut off moratoriums as a good start. Good news is that many utilities have voluntarily taken action to that effect, and New Jersey and New York have suspended shut-offs, one of the best trackers on who is taking what action has been assembled by Energy Policy Institute.

But voluntary actions do not always provide comprehensive protection, and they certainly have not been universally adopted across the country. Some utilities are waiving fees as relief measures, and some moratoriums only apply to customers directly affected by COVID-19, which will place additional onerous red tape on households that are stricken and perhaps unable to access testing. Others might only be an extension of standard medical shut off protections. Moratoriums put in place by voluntary action can also be revoked or lifted by voluntary action, which does not provide any sense of certainty to people struggling to make ends meet.

This is why the US needs mandatory moratoriums on all utility disconnections. These normally would be rendered at the state level, either by a regulatory commission, legislative act, or even an emergency executive order. But the inconsistent leadership among states in response to the COVID-19 crisis suggests that Congressional action is needed to ensure that all vulnerable utility customers are protected. That’s exactly what a coalition of organizations, including UCS, is calling for in future federal aid legislation. UCS has called for a national moratorium on utility shut-offs.

And let’s be clear, preventing new shut-offs isn’t enough. Cutting power off at residence during a pandemic is not good public policy. People who are without electricity should have it restored so residents can safely shelter in place and help flatten the curve. So far, only Colorado and Wisconsin’s leadership has taken this option.

Addressing the root causes of energy poverty
Preventing shut-offs is a good first step, but the increased bill charges will nevertheless place greater economic pressure on an incalculable number of families. Addressing the root of the problem (energy affordability) must be prioritized when we begin to recover from the health and economic ramifications of the COVID-19 pandemic.

One way policymakers can do that is to forgive outstanding balances on utility bills, perhaps with an eligibility cap based on income. Additional funds could be made available to those who are still struggling to pay their bills via capping bills, waiving late payment fees, automating payment plans or other protective measures that rightfully place consumers (particularly vulnerable consumers) at the center of any energy-related COVID-19 response. Low-and-moderate-income energy efficiency and solar programs should be funded as much as practically possible.

New infrastructure, particularly new construction that is slated for public housing, subsidized housing, or housing specifically marketed for low- and moderate-income families, should include smart thermostats, better insulation, and energy-efficient appliances.

Implementing these solutions may seem daunting, let us not forget that one of the best ways to ease people’s energy burden is to keep a utility’s overall energy costs low. That means state utility commissions must be vigilant in utility rate cases and fuel recovery cost dockets to protect people facing unfathomable economic pressures. Unscrupulous utilities have been known to hide unnecessary costs in our energy bills. Commissions and their staff are overwhelmed at this time, but they should be applying extra scrutiny during proceedings when utilities are recovering costs associated with delivering energy.

What might a utility try to get past the commission?
Well, residential demand is up, so for many people, bills will increase. However, wholesale electricity rates are low right now, in some cases at all-time lows. Why? Because industrial and commercial demand reductions (from social distancing at home) have more than offset residential demand increases. Overall US electricity demand is flat or declining, and supply/demand economics predicts that when demand decreases, prices decrease.

At the same time, natural gas prices have set record lows each month of this year and that’s a trend that is expected to hold true for a while.

Low demand plus low gas prices mean wholesale market prices are incredibly low. Utilities should be taking advantage of low market prices to ensure that they deliver electricity to customers at as low a cost as possible. Utilities must also NOT over-run coal plants uneconomically or lean on aging capacity despite disruptions in coal and nuclear that can invite brownouts because that will not only needlessly cost customers more, but it will also increase air pollution which will exacerbate respiratory issues and susceptibility to COVID-19, according to a recent study published by Harvard.

Related News

• Electricity Forum News

• Energy Policy News

Ontario IESO COVID-19 Control Room Measures detail how essential operators safeguard the electricity grid with split shifts, backup control centres, real-time balancing, deep cleaning, social distancing, and shelter-in-place readiness to maintain reliable power.

Key Points

Measures that protect essential grid operators with split shifts, backup sites, and hygiene to keep power reliable.

✅ Split teams across primary and backup control centres

✅ 12-hour shifts with remote handoffs and deep cleaning

✅ Real-time grid modeling to balance demand and supply

A group of personnel key to keeping Ontario's electricity system functioning may end up locked down in their control centres due to the COVID-19 crisis, according to the head of the province's power operator.

But that has so far proven unnecessary with a change-up in routine, Independent Electricity System Operator CEO Peter Gregg said.

While about 90 per cent of staff were sent to work from home on March 13, another 48 control-room operators deemed essential are still going into work, Gregg said in an interview.

"We identified a smaller cohort of critical operations room staff that need to go in to operate the system out of our control centres," Gregg said. "My biggest concern is to maintain their health, their safety as we rely on them to do this critical work."

Some of the operators manage power demand and supply in real time as Ontario electricity demand shifts, by calling for more or less generation and keeping an eye on the distribution grid, which also allows power to flow to and from Ontario's neighbours. Others do scenario planning and modelling to prepare for changes.

The essential operators have been split into eight teams of six each working 12-hour shifts. The day crew works out of a control centre near Toronto and the night shift out of a backup centre in the city's west end, Gregg said.

"That means that we're not having physical hand-off between control room operators on shift change -- we can do it remotely -- and it also allows us to do deep cleansing," Gregg said. "We're fortunate that the way the room is set up allows us to practice good social distancing."

Should it become necessary, he said, bed, food and other on-site arrangements have been made to allow the operators to stay at their workplaces as a similar agency in New York has done.

"If we do need to shelter these critical employees in place, we've got the ability to do so."

IESO is responsible for ensuring a balance between supply and demand for electricity across the province. Because power cannot be stored, the IESO ensures generators produce enough power to meet peak demand while making sure they don't produce too much.

"You're seeing, obviously, commercial demand drop, some industrial demand drop," Gregg said. "But you're also seeing a shift in the demand curve as well, where normally you have people heading off to work and so residential demand would go down. But obviously with them staying home, you're seeing an increase in residential electricity use across the province."

Some utilities have indicated no cuts to peak rates for self-isolating customers, with Hydro One peak pricing remaining in place for now.

IESO also runs and settles the wholesale electricity markets. Market prices are set based on accepted offers to supply electricity, while programs supporting stable electricity pricing for industrial and commercial users can affect costs against forecast demand.

With the pandemic forcing many businesses to close and people to stay home, and provincial electricity relief for families and small businesses in place, typical power needs fallen about seven per cent at a time of year that would normally see demand soften anyway. It remains to be seen whether, and how much, power needs shift further amid stringent isolation measures and the ongoing economic impact of the outbreak.

Gregg said the operator is constantly modeling different possibilities.

"What we do normally is prepare for all of these sort of emergency scenarios, as reflected in the U.S. grid response coverage, and test and drill for these," he said. "What we're experiencing over the last few weeks is that those drills come in handy because they help us prepare for when the real-time situation actually happens."

Related News

• Electricity Forum News

• Utility Operations News

Community Solar for Low-Income Homes expands energy equity by delivering renewable energy access, predictable bill savings, and tax credit benefits to renters and energy-insecure households, accelerating distributed generation and storage adoption nationwide.

Key Points

A program model enabling renters and LMI households to subscribe to off-site solar and save on utility bills.

✅ Earn bill credits from shared solar generation.

✅ Expands access for renters and LMI subscribers.

✅ Often paired with storage and IRA tax credit adders.

On a square-foot basis, the issue of inequality is made worse by higher costs for energy usage in the nation. Efforts like community solar programs such as Maryland community solar are underway to boost low-income participation in the cost benefits of renewable energy.

The Energy Information Administration (EIA) shows that households that are considered energy insecure, or those that have the inability to adequately meet basic household energy costs, are paying more for electricity than their wealthier counterparts. 

On average in the United States in 2020, households were billed about $1.04 per square foot for all energy sources. For homes that did not report energy insecurity, that average was $0.98 per square foot, while homes with energy insecurity issues paid an average of $1.24 per square foot for energy. This means that U.S. residents that need the most support on their energy bills are stuck with costs 27% higher than their neighbors on square-foot-basis.

EIA said energy-insecure households have reduced or forgone basic necessities to pay energy bills, kept their houses at unsafe temperatures because of energy cost concerns, or been unable to repair heating or cooling equipment because of cost.

In 2020, households with income less than $10,000 a year were billed an average of $1.31 per square foot for energy, while households making $100,000 or more were billed an average of $0.96 per square foot, said EIA. Renters paid considerably more ($1.28 per square foot) than owners ($0.98 per square foot). There were also considerable differences between regions, with New England solar growth sparking grid upgrade debates, ethnic groups and races, and insulation levels, as seen below.

The energy transition toward renewables like solar has offered price stability, amid record solar and storage growth nationwide, but thus far energy-insecure communities have relatively been left behind. A recent Berkeley Lab report, Residential Solar-Adopter Income and Demographic Trends, indicates that even though the rate of solar adoption among low-income residents is increasing (from 5% in 2010 to 11% in 2021), that segment of energy consumers remains under-represented among solar adopters, relative to its share of the population.

Community solar efforts

As such, the United States is targeting communities most impacted by energy costs that have not benefitted from the transition, highlighting “Energy Communities” that are eligible for an additional 10% tax credit through funds made possible by the Inflation Reduction Act.

Additionally, a push for community solar development is taking place nationwide to extend access to affordable solar energy to renters and other residents that aren’t able to leverage finances to invest in predictable, low-cost residential solar systems. The Biden Administration set a goal this year to sign up 5 million community solar households, achieving $1 billion in bill savings by 2025. The community solar model only represents about 8% of the total distributed solar capacity in the nation. This target would entail a jump from 3 GW installed capacity to 20 GW by the target year. The Department of Energy estimates community solar subscribers save an average of 20% on their bills.

California this year passed AB 2316, the Community Renewable Energy Act takes aim at four acute problems in the state’s power market: reliability amid rising outage risks, rates, climate and equity. The law creates a community renewable energy program, including community solar-plus-storage, supported by cheaper batteries, to overcome access barriers for nearly half of Californians who rent or have low incomes. Community solar typically involves customers subscribing to an off-site solar facility, receiving a utility bill credit for the power it generates.

“Community renewable energy is a proven powerful tool to help close California’s clean energy gap, bringing much needed relief to millions struggling with high housing costs and utility debt,” said Alexis Sutterman, energy equity program manager at the California Environmental Justice Alliance.

The program has energy equity baked into its structure, working to make sure Californians of all income levels participate in the benefits of the energy transition. Not only does it open solar access to renters, the law ensures that at least 51% of subscribers are low-income customers, which is expected to make projects eligible for a 10% tax credit adder under the IRA.

“The money’s on the table now,” said Jeff Cramer, president and chief executive of the Coalition for Community Solar Access. “While there are groups pushing for solar access for all, and states with strong legislation, there are other pockets of interest in surprising places in the United States. For example, Louisiana has no policy for community solar or support for low-income residents going solar but the city of New Orleans has its own utility commission with a community solar program. In Nebraska, forward-looking co-operatives have created community solar projects.

Community solar markets are active in 22 states, with more expected to come online in the future as states pursue 100% clean energy targets across the country. However, the market is expected to require strong community outreach efforts to foster trust and gain subscribers.

“There is a distrust of community solar initially in LMI communities as many have been burned before by retail energy false promises,” said Eric LaMora, executive director, community solar, Nautilus Solar on a panel at the Solar Energy Industries Association Finance, Tax, and Buyers seminar. “People are suspicious but there really are no hooks with community solar.”

LMI residents are leery to provide tax records or much documents at all in order to sign up for community solar, LaMora said. “We were surprised to see less of a default rate with LMI residents. We attribute this to the fact that they see significant savings on their electric bill, making it easier to pay each month,” he said.

Related News

• Electricity Forum News

• Renewable Energy News