There are many financial factors that influence the cost and cost-effectiveness of the community impact solar (CIS) model. As noted in the Solar Site Potential and Selection page, there are several physical factors that can impact the efficiency of solar panel installations. These factors can also affect the cost of solar panel installation at a particular site, depending on what unique factors need to be accommodated. Additionally, the construction of a larger solar installation involves many different upfront costs, not limited to but including:
While this list may seem daunting, these factors are all calculated well ahead of time and factor in to the price that the site host will pay the capital provider in the power purchase agreement (PPA). Although it is not necessarily as important for a community-oriented leader to factor all of these costs in to their decision-making process, each of these unique cost factors influences the amount of savings that the host site power user may be able to achieve, and thus pass on to targeted community members or organizations. These costs will also differ somewhat depending on what market the solar installation is intended to be built in.
It is important to note that the cost between the market rate that a large power user is currently paying on the competitive retail electric market (CEM) and the cost of the electricity generated by a solar installation is likely to be as low as $0.01/kilowatt-hour (kWH). Nevertheless, these cost savings, sustained over time and supported with the efforts of the nonprofit parter, will create a significant amount of available funds for community impact.
One of the key design aspects of the CIS model is that the entire solar installation is to be built behind the meter. By constructing a solar array behind the meter, the host site and capital partner avoid having to encounter additional regulatory hurdles, including the use of a retail electric provider (REP) and additional permitting from the Texas Public Utility Commission. Regardless, there will still be some legal, permitting, and regulatory hurdles that will need to be discussed with the relevant experts in order to build out the CIS installation.
It is also important to consult with people knowledgeable of local building codes and regulations in your area to determine what regulatory hurdles might be unique to your area. Local ordinances may prevent the development of a CIS system that would be otherwise technically feasible.
If your utility allows for net metering, and you intend to sell any excess electricity generated back to the grid, there will also likely be additional permitting and regulatory challenges that will need to be overcome in conjunction with your local utility.
