Wisconsin's Economic Future: Exploring Three Ways Community Solar Can Contribute

According to Renew Wisconsin, a striking 50% of Wisconsin households find themselves unable to access solar energy. The reasons for this inaccessibility range from living in apartments, being renters, or simply lacking a suitable roof for solar installations. The Coalition for Community Solar Access (CCSA) has recognized this resource gap and is actively seeking ways to fill it. In 2022, they teamed up with Forward Analytics to investigate the economic advantages that could be reaped from investing in community solar infrastructure throughout the state.

Community Solar: A Way Forward

Community solar represents an innovative way to make solar energy available to a broader swath of the population. It allows multiple people or entities to invest in and subsequently share the energy produced by a communal solar array. These photovoltaic (PV) systems are typically initiated by organizations or affluent individuals who possess the required capital to fund the construction.

In some states, a unique system known as net metering is employed, where shareholders’ excess electricity is fed back into the regional utility grid. This exchange results in credits on their monthly utility bills, making clean energy accessible and often more affordable. Subscription rates for community solar programs usually undercut those of traditional utility companies. Moreover, users can typically sell back surplus electricity at the rate at which they purchased it, creating additional savings.

The Economic Impact: Three-Fold Growth

Forward Analytics, using data from CCSA and intelligence from the National Renewable Energy Laboratory (NREL), has laid out a promising vision for Wisconsin's economy through the implementation of community solar. They predict that the construction of 350 solar installations will drive growth in three key sectors:

1. Funding Local Businesses: By investing in solar, local businesses stand to benefit directly from both the construction and ongoing maintenance of solar installations.
2. Stimulating the Regional Real Estate Market: Solar arrays require land, and the purchase or lease of these lands can invigorate the local real estate market.
3. Increasing Jobs: A project of this magnitude would necessitate a substantial workforce, leading to job creation in various sectors including construction, engineering, and ongoing maintenance.

A Deeper Dive into the Numbers

The team at Forward Analytics utilized the software platform IMPLAN's program to dive into the intricate financial calculations. This model carefully measures the price of labor materials and land leases from both a buyer’s and seller’s perspective. "The financial activity that occurs as these dollars move through the economy generates the multiplier effect," the study insightfully reports.

The analysis further breaks down the timeline and potential revenue:

• Construction Phase (7 years): Building 350 installations at a rate of 50 per year is expected to generate a staggering $1.57 billion during this period.
• Operation Phase (26 years): The following 26 years will see an additional $856.09 million realized, reflecting ongoing operation and maintenance costs.
• Additional Benefits (6 years): An extra $67.03 million will be reaped in subsequent years, further adding to the long-term economic benefit.

The partnership between Renew Wisconsin, CCSA, and Forward Analytics presents a compelling case for the expansion of community solar in Wisconsin. Not only does it offer a solution to the existing energy accessibility problem, but it also lays a foundation for significant economic growth. From supporting local businesses to bolstering the real estate market and creating jobs, the adoption of community solar could mark a bright and sustainable future for Wisconsin. The state's legislators and energy stakeholders would do well to consider this avenue as a catalyst for both environmental progress and economic development.