The community impact solar model relies on several key players in order for the model to be successfully developed and implemented. Each role plays a pivotal part in making sure that the community impact solar installation both creates an affordable, renewable energy source and produces community impact in the form of financial support. The following outlines the different roles that help to make this model possible:
Community Impact Solar Customer (Host) - Most importantly, the model requires a viable site to host a solar installation. The host is intended to be a relatively large power consumer that pays commercial electricity rates in the Texas Competitive Energy Market. The exact amount of power consumption to qualify depends on several factors, including location, current electricity rates, and available space for a solar installation. Additionally, the host should have corporate social responsibility goals that include the adoption of solar energy resources and a keen interest in benefitting their surrounding communities.
Financial Capital and Technical Partner - Building a solar installation can be a cost and technologically-intensive venture. By involving a financial capital and technical partner, the site host can avoid having to provide the upfront capital to build a solar installation. The financial and technical partner funds, builds, and maintains the solar installation. They then sell the power that is generated at the solar installation to the host through a power purchase agreement (PPA). The capital partner makes money on the installation and operation of the solar panels, while the host receives clean electricity, produced at a cost that is ideally less than they are currently paying.
Nonprofit Partner - A successfully-implemented CIS model generates cost savings for the host that can be distributed to community members or organizations in the form of an energy dividend or other cash award. The nonprofit partner is a key player for ensuring that these these funds are properly collected and distributed to the intended target recipients. The nonprofit partner helps to retain a relationship between community member award recipients and the host site organization.
Social Impact Fund Provider - A social impact fund provider is not intended to be a permanent fixture of the community impact solar (CIS) model. Nevertheless, an organization that provides social impact funds can help to support the creation of a CIS. By underwriting the creation of the CIS model, the social impact fund provider helps to make the project more financially viable, which is particularly important to help get the first demonstration CIS installation off the ground.
The community impact solar model can only be successful when it is developed with robust community input. Through conversations with the nonprofit partner and host, community members can determine how the community impact solar installation may help to provide further community impact through the investment of funds. It will ultimately be up to community members and the nonprofit partners as to how any funds generated from the CIS model will be reinvested in the community.
If you are interested in learning more about connecting with other organizations about the community impact solar (CIS) model, please reach out to tepri@tepri.org.
