Community Shared Solar: Promising Option For Calif. Builders

On Feb. 20, the California Energy Commission, or CEC, voted five-zero to approve a plan by the Sacramento Municipal Utility District, or SMUD, to build an off-site community shared solar project. This project will allow certain developers to forgo installing on-site solar panels on new residential buildings.¹

This is the first such project approved since California's 2019 Building Energy Efficiency Standards took effect on Jan. 1, 2020.² The 2019 standards were adopted unanimously by the CEC on May 9, 2018.³

SMUD's community shared solar plan — dubbed the Neighborhood SolarShares Program — establishes a blueprint for other entities to develop new single-family residences and low-rise residential units without including on-site solar panels on each new building. Relatively more widespread community shared solar projects instead of on-site solar panels will likely financially benefit prospective homebuyers, but represents a loss for the rooftop solar industry.