Community Solar: The Next Step in Solar Power
Solar power is a growing renewable energy source, thanks to declining costs and increasing demand. A recent report from CBRE noted that community solar is providing CRE opportunities in addition to renewable energy.
What is “community solar?” In quoting solar company Altus Power, CBRE explained that community solar involves participants who are “members in a shared solar project situated on a larger, off-site location such as a large utility-scale solar facility, a solar farm or a nearby industrial property.”
In other words, community solar gives customers access to solar energy without installing photovoltaic panels. The report added that property owners who subscribe to a community solar project can reduce carbon emissions and electricity costs without changing rooftops or homes.
In quoting information from Solar Industry Research Data, CBRE explained that community solar experienced an average annual growth rate of 80% over the past decade, reaching approximately 6.49 GW by the end of 2024. Furthermore, community solar is anticipated to reach 14 GW by 2028.
The first community solar project popped up in 2006 in Washington State. As of 2022, 2,550 community solar projects existed, with 93% of those in 10 states.
Here’s how community solar can provide opportunities for CRE owners with rooftops or space that can accommodate PV panels:
Meeting environmental objectives. The CBRE report explained that “behind the meter” solar allows property owners to supply clean power to tenants and for property operations. Furthermore, it helps “reduce utility expenses while helping (property owners) meet sustainability goals,” according to CBRE analysts.
Participation in community solar. Through this method, property owners can funnel solar power into the electricity grid, allowing community members to purchase that energy without site control. “Community solar projects promote sustainability by increasing the adoption of renewable energy, reducing greenhouse gas emissions and decreasing dependence on fossil fuels,” the analysts added.
The report concluded by explaining the benefits of community solar, a cost-effective way for communities to participate in sustainable energy solutions. Meanwhile, for property owners, this arrangement can offer additional revenue opportunities, less reliance on fossil fuel sources and compliance with climate mitigation efforts.
