Dive Brief:
- Consumers Energy has launched its "Solar Gardens" programs, according to a release from the utility. Consumers can build up to 10 MW of community solar under the program.
- The utility has picked two college campuses -- Grand Valley State University and Western Michigan University -- as possible sites for the gardens, which are expected to start construction and ultimately come online in 2016.
- Consumers Energy is currently gauging interest in the program. The utility will announce pricing details and start enrolling customers later this year.
Dive Insight:
Community solar is coming to Michigan -- albeit at a time when rooftop solar is caught in a political battle. Solar advocates rallied at the state Capitol on Wednesday against legislation filed by Michigan Republicans that would eliminate net metering at the retail rate. The proposed law would instead compensate solar customers at the wholesale rate. While solar advocates call the legislation "highly problematic," the bill's supporters believe the compensation scheme would be more fair to all customers using the grid. Midwest Energy News reports the bill would also raise the state's net metering cap from 1% to 10%.
Community solar is less controversial. Leading solar analysts GTM Research believe "2015 is the tipping point year" for community solar, as new business models and state laws begin to unlock what many view as a sizable, untapped market. Estimates of community solar's market potential vary, with GTM suggesting 77% of the residential market is locked out of rooftop solar. The Department of Energy believes the figure is 49% -- still a major untapped solar opportunity, and one that utilities may be able to get behind.
“Other utilities are looking for that solar offering that can be competitive with rooftop solar solutions without taking customers off the grid,” Cory Honeyman, solar analyst at GTM, told Utility Dive. “That is the starting point of the conversation.”
“[Community solar] is a high level way to strengthen [the customer] relationship. As utilities wake up to the value proposition, it will increasingly shape the market,” he said.
