Community Solar East FAQ

Community Solar is a different model for solar energy. Instead of putting a solar array on your own home or business, which often requires ownership, the right sunny location, a load bearing roof and significant upfront investment, Community Solar brings together a group of participants to build one larger solar array, and all participants benefit from the renewable energy generated.

The short answer? Yes. But how well depends on a variety of factors including location and system maintenance. Despite our cloudy cover, the Pacific Northwest receives more sun exposure than Germany, the world leader in solar energy. By sharing the cost to build the array in an appropriate location, and maintain it properly, the investment often pays back quicker than individual systems.

Clark Public Utilities built its first Community Solar Project in 2015, with five separately metered arrays and more than 700 residential customer participants. In 2022, Clark Public Utilities’ Board of Commissioners directed staff to study and propose options for a second Community Solar project, with the goal of broad and equitable customer participation levels and options. In partnership with the Port of Camas-Washougal, the team identified five Port buildings able to accommodate a (799kw) system.

 

 

 

 

The 799kW system design is divided and separately metered on the roof tops of five different buildings at The Port of Camas-Washougal, with each building section allocated to the following participating customer sectors:
1. 199kW reserved for low-income customers (~25%)
2. 300kW reserved for residential customers (~38%)
*split across 2 separately metered roof tops
3. 150kW reserved for business customers (~19%)
4. 150kW reserved for government customers (~19%)

Clark Public Utilities is designing, facilitating, constructing and managing this Community Solar East project for all Clark Public Utilities customers, just as we did for the original Community Solar project(s) that are sited at our Operations facility in Orchards (Community Solar Orchards). The Port of Camas-Washougal is the project site host. Customer participants are the project funders.

Rooftop solar, along with the benefits of net metering (the billing methodology that credits customers for all solar electricity generated by their system, whether consumed at the customer’s home or delivered back to the utility grid), isn’t an option for all customers in Clark County. This may be due to the physical structure/location of the home or business, the location or landscape (shade trees or inappropriate roof angles), or because a customer is renting the home or commercial building. Community Solar projects offer “virtual net metering” that allows customers to participate in a renewable and carbon-free energy solution that pays them back with financial energy credits towards their electric bill. For most participants, annual energy credit amounts are based on participation level, and will be provided for the life of the system.

Starting September 1, 2023, there will be an online residential sign-up form hosted on this website and customers may call or email with questions. Businesses and government agencies should contact their Key Accounts Manager to learn more about project participation options; they can also sign-up online. Customers can email [email protected] for questions or more information.

Community Solar East will include 199kW of installed capacity designated for low-income customers, using Operation Warm Heart (OWH) as the conduit to distribute the project generation benefits. Credits/funds from this 199kW portion of the project will be directed to OWH program funding and increase the amount of available grants for the program that provides bill assistance for customers in financial crisis. When customers apply for any low income energy assistance programs, they are screened for eligibility to receive an OWH grant. OWH grants are applied directly to an eligible applicant’s electric account.

Clark Public Utilities is funding the development and construction of the low-income portion of the project. The cost will be reimbursed through the Washington State University Energy Extension Program. This incentive will reimburse 100% of the costs associated with this portion of the project because the costs will remain below the threshold of $2.25/watt. An additional $20,000 incentive can be collected for associated administrative costs.

 

 

 

 

Low-Income – The WSU Energy incentive is collected after project completion for 100% of the associated project costs to cover the 199kW of installed capacity allocated for low-income customers.

Residential, Business and Government – Customer participation fees will be collected during the 2023 calendar year.

 

 

 

 

 

Clark Public Utilities has budgeted $1.7 million in the 2023 utility capital budget to cover project expenses while customer participation fees are collected throughout 2023. Expenses will be paid as the project reaches completion benchmarks. Expected project expenses are listed above:

 

 

 

 

 

 

 

 

Residential – The residential offerings include large participation options priced up to $8,500, as well as small participation levels priced at $85. “Mini Units” will also be available for $10. These mini-units do not result in energy credits given back to the customer; participants will receive a sticker and know that they have contributed to the cost of a renewable and carbon-free resource right at home in Clark County.

 

 

 

 

 

 

 

 

Business and Government – We are excited to offer participation options in this new project for business and government customers. Two 150kW sections of the installed capacity are available to commercial and industrial customers (300kW in total) with participation options up to about $17,000, with the option to purchase multiple units depending on demand.Mini units are also available to business and government customers, priced at $85. Similar to the residential mini units, these mini units do not provide energy credits given back to the customer; participants will receive a sticker and know that they have contributed to the cost of a local renewable and carbon-free resource.

– Residential customer – The new Community Solar East project will be promoted throughout August 2023 via an outreach and awareness campaign, with customers directed to an online participation form that will be available September 1st, 2023.

– Business and Government Agency Customers – Clark Public Utilities held a Town Hall style event at the Clark Public Utilities Community Room with a virtual participation option on March 14, 2023 for our largest business and government customers. This is being followed by additional promotional efforts, including a commercial and industrial newsletter, to increase awareness of the program and motivate participation. Business and government customers will also have the ability to sign-up on-line and can be directed to their Key Account manager for guidance.

– Low-income customers – The low-income designated 199Kw system and the credits generated will be automatically directed towards the Operation Warm Heart (OWH) fund and distributed to customers who are in the most need by our regular energy assistance application process, coordinated through our community care (ComCare) department. Customers who may benefit from this piece of the project do not need to take any action beyond the energy assistance application process.

The project will be funded through participation fees. Additionally, Clark Public Utilities will apply to collect a state incentive (as described above) to cover the cost of the low-income participant portion of the project.

Participation fees can be paid by check or cash. Payment plans are available to allow customers to spread the participation cost over 12 months, in four quarterly payments beginning following official sign-up, with no additional convenience or interest fees. Details on payment options are included in the formal participation agreements

Clark Public Utilities is not able to provide refunds for the cost of participation units, however, participating customers will have an option to transfer their participation units to other customers of Clark Public Utilities. A sale or gift of these units must be facilitated privately, with the owner then initiating the administrative transfer to another customer account by contacting Clark Public Utilities. Transfer details and instructions are included in the formal participation agreements.

Yes, all participants must be a current Clark Public Utilities customer. If a participating customer moves within Clark County, the Community Solar units will follow the customer account to the new service address. If the customer moves outside of the county or goes out of business and closes the Clark Public Utilities account, participating units can be transferred or donated to an existing Clark Public Utilities account. Refunds will not be issued and transfers can be a gift or facilitated privately as a sale under the conditions in the participation agreement.

Clark Public Utilities will register the Community Solar East system in the Western Energy Coordinating Council’s (WECC) online REC database called the Western Renewable Energy Generation Information Systems (WREGIS). Participating businesses and government agencies will have the option to have their RECs transferred to them, or retired in WREGIS on their behalf, if indicated in the participation agreement.

The federal government offers a 30% tax credit for individuals and businesses that participate in community solar projects. Further, the Inflation Reduction Act creates a new direct-payment option for certain entities, such as municipalities, that do not pay federal taxes which allows these organizations to collect the 30% tax credit. We recommend all customers considering participation in the project consult with a tax professional for more details on applicable federal tax credits as directed in the participation agreement.

We expect this project to be installed and operating by January 2024. Clark Public Utilities, along with our site-host Port of Camas-Washougal, will honor this new community asset with a ribbon cutting ceremony just as we did for our first Community Solar Project. Commissioners, staff and members of the public will all be invited to attend.

Potentially, as long as all interested customers have had an opportunity to participate in the project both residential and business/government customers can purchase multiple solar units.

Participants will collect annual energy credits that will be applied directly to their Clark Public Utilities account. The value of the annual energy credit is determined by how much electricity a participant’s portion of the project produces each year.

• Residential Participants – Each kWh generated by a participant’s portion of the system will be multiplied by the utility’s current residential energy rate (currently $0.0816 per kWh), and then credited to their Clark Public Utilities electric account annually.
Example: Your portion of the system generates 1,000kWh in 2024 at the utility rate of $0.0816 per kWh, your 2024 energy credit is $81.60

• Business/Government Participants – Each kWh generated by a participant’s portion of the system will be multiplied by the current business (Sch. 034) energy rate (currently $0.077 per kWh), and credited to their specified Clark Public Utilities electric account annually.
Example: Your portion of the system generates 1,000kWh in 2024 at the utility rate of $0.077 per kWh, your 2024 energy credit is $77.00

*Note, if Clark Public Utilities raises electricity rates in the future, the rate used to calculate participants’ annual energy credits also increases.

Estimated ROI timelines are approximately 12 years assuming participants collect the 30% tax credit (see above on Federal Tax Credit info). The exact figure for residential customers, based on the kWh rate of $0.0879, is 11.77 years; for business and government customers, based on the kWh rate of $0.0833, the ROI is 12.42 years. Figures are based on utility rates that became effective March 1, 2024.

Yes, the formal participation agreement includes a 25-year term. There is a 10year warranty on the hardware portions of the system (Panels and inverters). Overhead and maintenance expenses outside of the warranty will be offset by the ongoing revenue stream created by mini units that are not allocated an annual energy credit.

We don’t anticipate material or supply chain delays for a project of this size but in the event of a delay, the start date for the 25 year guaranteed project life starts at the time the project is operating.

Yes. Within the participation agreement a business has the ability to retain the units as project participants, and select another Clark Public Utilities customer(s) to receive the annual energy credit(s).

For this Community Solar East project, the cost is less than $1.70 per installed watt. For a typical residential roof-top system, the cost on average, would be between $3.50-4.50 per installed watt. Because of the large size of the 799Kw Community Solar East project we are able to capture economies-of-scale, resulting in a lower cost per installed watt.

A standard solar panel consists of a layer of silicon cells, a metal frame, a glass casing, and various wiring to allow current to flow from the silicon cells. Silicon is a nonmetal with conductive properties that allow it to absorb and convert sunlight into electricity. Solar panels can be recycled, or rather the glass and metal within the panel can be separated and recycled. The recycling industry is working on more efficient processes to recycle solar panels and the WA State Legislature has passed a state law that goes into effect in 2025 and requires panel manufacturers to finance the takeback and recycling system at no cost to the owner. You can find additional information here.