Integrating community solar for local utility customers
How Sioux Valley Electric (SVE) collaborated with its members to create a viable community solar array that benefits both the utility and its members.
Project overview
Sioux Valley Energy (SVE) has constructed a Community Solar Array at its headquarters in Colman, SD. The Community Solar Array provided an opportunity for interested SVE members to experience solar energy without having to worry about the maintenance or land availability issues that can be barriers for some when installing solar on homes or businesses.
What challenge existed that the utility wanted to address?
We had many members interested in solar, but they may not have land available to install it or didn’t have the money to put up a project of their own.
What did the utility do to address the challenge?
We asked our membership in a survey whether they would consider purchasing energy from a community solar project and 50% of our members said yes. SVE then decided to plan a community solar array that would allow members to purchase the output from individual panels.
Were alternatives considered? If so, what were they and why was the chosen project preferred?
We considered allowing members to purchase energy as it was produced, but we didn’t want other members to subsidize the project, so ultimately we came up with a one time upfront fee that members would pay to purchase a 20 year subscription for the output of however many panels they purchased. This allowed SVE not to use any internal funds for the project, as we made sure to sell out all the panels before going forward with it.
How does the project advance decarbonization?
The solar array produces carbon free energy.
How were communities involved in planning and/or implementation of the project?
Members were asked if they would be interested in community solar originally. Once it was planned, we set out to find members that would be interested in purchasing the output from the panels.
What has the utility learned through the project?
SVE gained valuable experience with the installation of a solar array, as we used internal labor to complete the project. If another utility considers a similar project, I would recommend that they use the same model of selling out all the panels prior to building the project, as I have heard other cooperatives build projects then not be able to sell all of the panels.
How was this project funded?
This project was funded completely by SVE members that signed contracts to receive the output from the panels. The project cost was reduced by 30% due to taking advantage of the direct pay incentive.
Other information
The array has 140 panels with a total capacity of 60 kW and a maximum output of 50 kW. Another benefit of this project was that it offered economies of scale, making it less expensive to build a larger system than what would otherwise be installed on a single residence. The output is credited to the participating member’s bill every month.
Interested in deploying a low-risk technology like this?
Resources for Deploying a Low-risk Technology
