Community Solar and Virtual Net Metering

Community Solar and Virtual Net Metering
Summary
Utilities across the United States have been deploying community solar (CS) programs since 2010. These programs were designed to offer solar energy to residential and commercial users in multi-story buildings and those without an adequate roof to support solar electricity generation. Customers benefit from a solar project that is hosted outside the utility?s premises but utilizes its transmission and distribution infrastructure. CS is enabled by virtual net metering, which allows consumers to offset part or all of their electricity bills with the electricity produced by the solar project. At the same time, utilities improve customer satisfaction and limit the economic and technical impact that rooftop solar generation can have on their business.
By the end of 2015, 88.6 MW of capacity was deployed under CS programs across the United States, representing an estimated $175 million in revenue from those installations. The total installed capacity for CS programs across the country is expected to be 1.5 GW in 2020, representing a $2.5 billion market. A number of drivers, such as lower system cost and sustained demand for clean energy in the residential and commercial sector, point toward the potential for CS to capture 2% of the solar market. However, the resulting decrease in utility control and increase in retail competition will require a rethinking of current utility business models and their electricity generation mix.
This slide-based Navigant Research Utility Technology Disruption Report examines the CS market in the United States, with a focus on technology and policy trends, customer adoption, utility rollouts, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2025, along with estimated capacity distribution by U.S. state. Featuring Navigant Research?s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, provides utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success.