How Local Governments Can Advance Community Solar for Low- and Moderate-Income Households

This guide from the World Resources Institute outlines strategies for U.S. local governments to expand community solar access for low- and moderate-income (LMI) households, leveraging new federal incentives from the Inflation Reduction Act and various municipal-level interventions.

• The Inflation Reduction Act provides specific investment tax credit (ITC) bonuses for solar projects benefiting low-income communities. Projects under five megawatts on Indian land or in low-income communities can receive a 10% ITC bonus. A higher 20% ITC bonus is available for projects on affordable or public housing that benefit residents, or those where at least 50% of financial benefits go to LMI households.
• Local governments can overcome LMI participation barriers by providing direct financial assistance or expanding benefits beyond bill savings. Examples include the City of Anaheim's $10 monthly billing discount for eligible participants and the City of Pueblo's 'community solar benefit plan' which funds job training and educational opportunities.
• To reduce developer risk and mitigate the impact of high subscriber turnover among LMI households, local governments can act as 'anchor subscribers.' For instance, the City of Mankato, Minnesota, purchased a 15% share in a community solar project to provide the flexibility needed for LMI customer eligibility.
• Municipalities can lower development costs and increase access by leasing or donating public land and brownfields. In Washington, D.C., the Oxon Run project uses a publicly-owned brownfield site to provide free electricity to approximately 750 households annually.
• Local governments can address initial cost barriers through loan programs or loan loss reserves. The City of River Falls, Wisconsin, operates a community solar loan program that spreads costs over one to three years. Such programs could potentially be funded via the Greenhouse Gas Reduction Fund or the Department of Energy's Energy Efficiency and Conservation Block Grant.
• Local governments can influence the broader policy environment by advocating for state-level enabling legislation or negotiating with utilities. In New Jersey, the City of Hoboken advocated for consolidated billing to simplify participation for LMI residents, while in Florida, the City of Sarasota supported low-income provisions in Florida Power and Light’s SolarTogether program.

APA

World Resources Institute (2022). How Local Governments Can Advance Community Solar for Low- and Moderate-Income Households. https://www.wri.org/insights/how-local-governments-can-advance-community-solar-low-and-moderate-income-households

Chicago

World Resources Institute. How Local Governments Can Advance Community Solar for Low- and Moderate-Income Households. 2022. https://www.wri.org/insights/how-local-governments-can-advance-community-solar-low-and-moderate-income-households.

Wikipedia

{{cite report |author=World Resources Institute |title=How Local Governments Can Advance Community Solar for Low- and Moderate-Income Households |date=15 September 2022 |url=https://www.wri.org/insights/how-local-governments-can-advance-community-solar-low-and-moderate-income-households |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2022how, author = {{World Resources Institute}}, title = {{How Local Governments Can Advance Community Solar for Low- and Moderate-Income Households}}, institution = {World Resources Institute}, year = {2022}, month = sep, url = {https://www.wri.org/insights/how-local-governments-can-advance-community-solar-low-and-moderate-income-households}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }