Benefits Of Community-Owned Renewable Energy In US

While preparing for my trip to New York as a HBS Fellow, I decided to focus on community energy stories from across the Atlantic this month.The following report serves as a good introduction, as it summarises the benefits of community energy production in the US.The report focuses on:

1. The benefits of community renewable energy.

Among others, greater participation as well as economies of scale were mentioned.

2. The 3 major barriers to community renewable energy.

Federal and state securities laws meant to shield ordinary people from bad investments are often too onerous for community-scale renewable energy projects.

Federal tax incentives require specific and sufficient tax liability, in ways that often preclude ordinary community investors.

Finally, legal limitations to sharing electricity output from community-based renewable energy projects mean only states with explicit exemptions are likely to see substantial growth in community renewables.

3. The barrier-busting policies and strategies to unlock its full potential.

Among others, the state and federal crowd funding laws, the long-term phase out of federal renewable energy incentives and shared solar were listed as most crucial.

4. The remarkable examples of community projects that have already overcome the barriers.

Despite the barriers, a number of clever entrepreneurs have pulled together community renewable energy projects that combine local, community-scale renewable energy and local ownership.

- A 35-member LLC in University Park Maryland installed a community solar array on a local church

- Nearly 200 Iowa rural residents financed 6 community-owned turbines

- Over 600 South Dakota residents are owners in a 7-turbine wind power project hosted by Basin Electric Cooperative5. How cities represent existing “communities” than can go renewable.