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

The document outlines how U.S. local governments can leverage federal incentives, such as those in the Inflation Reduction Act, to advance community solar for low- and moderate-income (LMI) residents. It details specific actions including proactive community engagement, advocacy for state-level enabling legislation, providing direct financial subsidies, and reducing developer risks by acting as anchor subscribers or providing public land. The guide highlights various municipal examples from cities like Denver, Pueblo, and Anaheim to demonstrate how to integrate job training, bill discounts, and loan funds into solar initiatives.

• The Inflation Reduction Act provides specific tax incentives for solar projects benefiting low-income communities: a 10% investment tax credit (ITC) bonus for projects under five megawatts on Indian land or in low-income communities, and a 20% ITC bonus for projects on affordable/public housing or those where at least 50% of financial benefits go to LMI households.
• Local governments can overcome LMI participation barriers by providing direct financial support, such as the City of Anaheim's $10 monthly billing discount funded by solar energy produced on public school buildings.
• Municipalities can expand the impact of community solar by linking projects to quality-of-life benefits; for example, the City of Pueblo and the Housing Authority of the City and County of Denver partnered with GRID Alternatives to provide solar job training to LMI individuals.
• To reduce developer risk associated with high LMI subscriber turnover, local governments can act as 'anchor subscribers' by purchasing a significant share of subscriptions, as the City of Mankato did by purchasing a 15% share in a project.
• Local governments can lower development costs and increase access by leasing or donating public land; in Washington, D.C., a project on a publicly-owned brownfield site at Oxon Run provides free electricity to approximately 750 households annually.
• Local governments can address initial cost barriers through loan programs, such as the municipal utility in River Falls, Wisconsin, which spreads costs over one to three years, or by utilizing federal funds like the Greenhouse Gas Reduction Fund.
• Advocacy for state-level enabling legislation is critical since fewer than half of U.S. states have such laws; local governments can push for policies like virtual net metering or mandate minimum LMI subscriber percentages (ranging from 10-30% in some states).

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} }