Four Shortcuts To Boost Your State’s Community Power Score

Every year, the Institute for Local Self-Reliance publishes a Community Power Scorecard that shows how state laws and regulations can help make the energy system more equitable and democratic, and prioritize local communities.

Four policies – community solar, net metering, interconnection, and community choice energy – make up almost half of your state’s total score. When states focus on making sure these four policies support affordable, democratic, renewable energy, they can become national community power leaders.

Here’s how your state can do it:

1. Community Solar

Community solar helps people who can’t afford to put solar on their own rooftops and people who don’t own suitable rooftops reap the benefits of renewable energy.

Maryland has a model community solar policy that prioritizes access and equity.

A perfect-score community solar policy:

• Does not limit the amount (capacity) of community solar that can be installed in the state.
• Compensates subscribers fairly. Subscriber bill credits are valued the same as a reduction in metered energy use, the gold standard for subscriber compensation.
• Requires that at least 40% of the energy output from a community solar system goes to moderate and low-income households. These households do not have to endure credit checks to qualify.
• Demands that utilities incorporate community solar statements into monthly utility bills, simplifying the subscriber experience.

2. Net Metering

Net metering allows rooftop solar owners and most community solar subscribers to be credited for the difference between how much electricity they generate and how much electricity they use in a month at a predetermined rate. Net metering rules determine whether going solar is worth the investment, and if so, what size of solar installation makes most sense.

Oregon and D.C. currently have model net metering policies. The Interstate Renewable Energy Council’s Model Net Metering Rules guidelines also highlight some surefire ways that states can grow distributed solar to the benefit of the entire grid.

A perfect-score net metering policy:

• Guarantees full-price (or “retail rate”) net metering as kilowatt-hour credits on the customer’s bill.
• Applies to customers of all utilities operating in the state.
• Prevents utilities from applying demand charges, which penalize solar panel owners.
• Allows distributed energy producers to continuously rollover their billing credits, or get paid out annually at or near full price for their excess generation.
• Works in tandem with a state-enabled virtual or aggregate net metering policy, allowing users to offset energy use at multiple buildings and to use off-site solar to reduce their energy use.

3. Interconnection

Interconnection rules are standards and timelines for connecting renewable energy projects to the electric grid. With private monopolies controlling distribution, states need to intentionally set interconnection rules that promote transparency, fairness, and efficiency. The Interstate Renewable Energy Council (IREC) releases model interconnection guidelines every few years.

New Mexico is the only state with a winning interconnection policy.

A perfect-score interconnection policy:  

• Allows small projects to move quickly through the interconnection process.
• Has a nuanced understanding of energy storage.
• Intentionally increases grid access for low-income or underserved communities.

4. Community Choice Energy

Community Choice Energy allows local governments to join together and choose their energy suppliers on behalf of all residential and small commercial customers. The incumbent utility still owns the distribution system and bills customers, but because the community choice entity is a nonprofit, it can provide cleaner energy at lower prices.

California is the only state with a model community choice energy policy.

A perfect-score community choice energy policy:

• Provides the ability to aggregate multiple units of government.
• Automatically enrolls customers, who may then opt out if they choose.
• Gives community choice entities the ability to take over energy efficiency programs from the utility.
• Encourages contract lengths of at least 15 years.

Learn more about the 18 policies that the Institute for Local Self-Reliance evaluates, and how states are doing, through the interactive Community Power Map.

For timely updates from the Energy Democracy Initiative, follow John Farrell on Twitter or Bluesky, and subscribe to the Energy Democracy newsletter.