Revolving Program Related Investments Energy Savings Fund
A review of approaches to increase program related investments to support the financing of solar projects serving low-income communities
SEARCH · Engineering Papers
Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.
Quote a phrase for an exact phrase match. Source license links do not imply unrestricted reuse.
A review of approaches to increase program related investments to support the financing of solar projects serving low-income communities
Rooftop and community solar are alternative product classes for residential solar in the United States. Community solar, where multiple households buy solar from shared systems, could make solar more accessible by reducing initial costs and removing adoption barriers for renters and multifamily building occupants. Here we test whether community solar has expanded solar access in the United States. On the basis of a sample of 11 states, we find that community solar adopters are about 6.1 times more likely to live in multifamily buildings than rooftop solar adopters, 4.4 times more likely to rent and earn 23% less annual income. In this study, we do not find that community solar expands access in terms of race. These differences are driven, roughly evenly, by inherent differences between the two solar products and by policies to promote low-income community solar adoption. The results suggest that alternative solar products can expand solar access and that policy could augment such benefits.
When Solstice began working in the community solar industry, it quickly became clear that there was a wide disparity along race and class lines in terms of what kind of household traditional solar offerings benefited. Solstice is an organization that aligns itself to the principles of a Just Transition, or the concept that a transition to a green economy should benefit and prioritize historically marginalized groups of people. Given that low-income communities are disproportionately burdened by our current polluting fossil fuel economy, Solstice set out to investigate the root causes of the exclusion of low to moderate income (LMI) households in the community solar market. As we worked more and more with financiers, developers, and LMI households, we recognized that significant barriers to entry in a developer-owned project were credit threshold requirements. A FICO score of 750 and higher discriminates against LMI households that are not financially stable enough to take on multiple lines of credit (or who may not have been deemed credit worthy enough to access a line of credit) yet who may have been reliable utility customers. As Solstice began looking further into preliminary data and speaking to community-based organizations (CBOs) that serve LMI households, we found our hypothesis to be worth investigating; there was indeed a subset of LMI households with poor FICO scores (or no FICO score at all) that had perfect bill payment history. Though initially Solstice was intent on gathering a body of data to prove or disprove this hypothesis, we were also concerned that all this proof of a financially stable and reliable customer was not being incorporated into FICO, and wondered if such a score would be possible. After preliminary research into the existence of alternative scores, Solstice realized that many mission-driven lending institutions rely on alternative metrics that are formulated for their specific industry. However, we also realized that community solar did not have an alternative credit underwriting mechanism, though there was great need from solar financiers for one. We anticipated that the creation of an EnergyScore would contribute to financiers’ need to qualify more people, as these entities are desperately looking for ways to lower the cost of customer acquisition. FICO turns away nearly 50% of potential customers (according to our own acquisition experience), and much of the community solar industry is realizing that FICO is not the perfect qualifying mechanism. Additionally, with a grounding in energy justice, just transitions, and climate justice, Solstice recognizes the need for a solution that addresses a more urgent need for LMI households to access renewable energy savings and relieve energy burdens. With funding from the Department of Energy, we gathered the data necessary to build the EnergyScore, reached out to mission-driven developers willing to test the metric, and secured several demonstration projects to pilot the EnergyScore. After acquiring customers for these demo projects using the EnergyScore, we will be continuously collecting customer payment behavior data. Though it goes beyond the scope of this project, we plan to disseminate this de-identified data with the wider community solar industry, which includes not only financiers and developers, but other mission-driven nonprofits, solar cooperatives, community-based organizations, environmental justice activists, and academics. While we intend to disprove the notion that LMI households cannot be included in projects without acutely increasing the risk to project finances, we also hope the data can be used to negotiate better pricing of systems and terms of ownership for community groups seeking to build inclusive projects.
This implementation plan discusses the District of Columbia's strategy to combine low-income community solar projects with resilience technologies. Through the technical and financial support offered by the Inclusive Shared Solar Initiative and building on extensive stakeholder engagement in LMI neighborhoods around the District, the District of Columbia team expects to reduce energy burdens for LMI residents, address barriers to and streamline SfA program enrollment, and support the development of innovative benefit delivery models, including a community solar-supported climate resilience center.
This technical assistance is part of the Communities Local Energy Action Program (CLEAP) for the Beacon Hill, Seattle, Washington community coalition consisting of El Centro de la Raza, Beacon Hill Council and Bethany United Church of Christ with supportive partners, Seattle City Light and the Seattle Office of Sustainability and Environment. This report uses the Low-Income Energy Affordability Data (LEAD) Tool to identify the most energy burdened households by income group, building type, building age and fuel type.
The Kentucky Office of Energy Policy (OEP) applied the U.S. Department of Energy’s (DOE’s) web-based Low-Income Energy Affordability Data (LEAD) Tool to identify areas of their state with energy affordability needs. Kentucky OEP staff used the LEAD Tool to identify counties in Kentucky with the highest energy burden, which is the percentage of household income spent on energy. With this knowledge, Kentucky OEP staff allocated funds to relevant nonprofit organizations that provide home repairs, weatherization upgrades, and other solutions in areas where these services have the highest potential energy saving benefits and can reduce energy burden.
The Saint Regis Mohawk Tribe is a sovereign, federally acknowledged Indian Tribe. The Tribal Council created the Akwesasne Housing Authority (AHA) by ordinance in July 1984 and has designated the AHA as its agency for purposes of administering the Tribe’s Indian Housing Block Grant under the Native American Housing and Self-Determination Act of 1996. The Go Solar project will install approximately 615 kilowatts (kW) of solar photovoltaic (PV) facilities to serve housing related buildings on the Tribe’s reservation and use net metering programs to reduce the energy costs for AHA and Tribal members by up to $\$$4,417,501 over the life of the project. AHA will initiate four (4) net zero buildings: two (2) new net zero low-income housing buildings located at Sunrise Acres III, which include the Veterans Supportive Housing Building and the Seniors Supportive Housing building, and one (1) older, existing net zero building used by the Akwesasne Boys & Girls Club (ABGC Building), and (1) Tribal Administration Building.
As part of the SEIN Round 3 program, a diverse group of energy stakeholders in Texas set out to develop and pilot new pathways to increase rooftop solar adoption at no upfront cost to lowincome households. One potentially promising pathway we identified involved combining funding from existing utility and federal programs promoting weatherization and energy efficiency. Our objective was to demonstrate pilot projects that equitably deployed rooftop solar to properties owned or rented by families in disadvantaged communities. Our goal was to create a clear path for lowincome households to achieve electricity bill relief and to access clean energy by leveraging existing utility energy efficiency programs with existing federal resources, such as the U.S. Department of Health and Human Services (HHS) Low-Income Home Energy Assistance Program (LIHEAP) and/or U.S. Department of Energy (DOE) Weatherization Assistance Program (WAP) funding in Texas. This has been attempted in a few other states with varying degrees of success, but not yet in Texas.
Renewable energy development can bolster local economies through job creation, local tax revenues, and reduced energy costs; however, communities most in need of economic development and employment opportunities often see lower levels of renewable energy deployment. Megan Day and Liz Ross, along with their co-authors and supported by NREL's Sustainable Communities Catalyzer, identified areas where disadvantaged community indicators intersect with high potential for renewable energy deployment. Through a geospatial intersection of energy burden, environmental hazard, and sociodemographic data with the technical generation potential and levelized cost of energy for multiple renewable energy technologies, we identified trends across disadvantaged community indicators and renewable energy deployment potential. Combining metrics across several tools, including the State and Local Planning for Energy (SLOPE) platform, the Low-Income Energy Affordability (LEAD) tool, and the Environmental Justice Screening and Mapping (EJSCREEN) tool, we compiled a dataset that can be used to inform national- and state-level energy-related assistance programs, economic development efforts, and infrastructure programs seeking to prioritize investments in disadvantage communities.
In the following use case, investor-owned utility company, National Grid, used the Low-Income Energy Affordability Data (LEAD) Tool to support the implementation of its Home Energy Affordability Team (HEAT), a weatherization program for income-eligible residential natural gas customers in its service territory in Long Island, New York. Using LEAD Tool data, National Grid was able to determine how many households may be eligible for the program to inform additional marketing efforts. This use case is an example of how utilities of all sizes and types in the United States can use the LEAD Tool in similar ways to gain insights and better address customer energy affordability needs.
Over the last two years, the National Renewable Energy Laboratory has identified the pathways for implementing solar in the Weatherization Assistance Program and Low Income Home Energy Assistance Program and practices for successful implementation. Learn about successful implementation models from around the network and the new resources that can give you a head start in planning solar into your program, including a demonstration of tools to help evaluate solar potential and cost-effectiveness at the household level, as well as a new tool from the U.S. Department of Energy National Community Solar Partnership to help connect households receiving LIHEAP assistance to community solar subscriptions that guarantee energy bill savings.
This data is aligned to eligibility criteria outlined in the United States Department of Energy (DOE) 2023 Communities LEAP (Local Energy Action Program). Please visit the LEAP website (https://www.energy.gov/communitiesLEAP/communities-leap) to learn more about LEAP and gain additional contextual information for how these data may be used. The data provided approximates how the eligibility criteria apply at the census tract level across the United States. This EDX submission provides access to information pertaining to each of the four eligibility criteria outlined (average energy burden, percent low income, communities with a historic economic dependence on fossil fuel industrial facilities, and disadvantaged communities) for all census tracts within the 50 U.S. States, the District of Columbia (D.C.), and Puerto Rico. This information can be access in a detailed excel spreadsheet or through the linked interactive web application (https://arcgis.netl.doe.gov/portal/apps/experiencebuilder/experience/?id=2a77f443d72b4a4d82474b3ffe33b8cd). Please note that while these data are provided at the census tract level, census tracts do not necessarily have the same physical boundaries as a community but were used as they provide the closest proxy based on publicly available information collected using an empirically robust method. U.S. territories are not listed but are eligible to apply to Communities LEAP. As stated in the Opportunity Announcement, applying communities should describe how they meet the eligibility criteria in their application even if these data do not specifically show that they are eligible.
This submission offers data aligned to each of the four eligibility criteria outlined in the United States Department of Energy (DOE) 2021 Communities LEAP (Local Energy Action Program) Pilot. Please visit the LEAP website (https://www.energy.gov/communitiesLEAP/communities-leap) to learn more about LEAP and gain additional contextual information for how these data may be used. The data provided in the file approximates how the eligibility criteria apply at the census tract level across the United States (U.S.). The excel file available for download provides information pertaining to each of the four criteria outlined (average energy burden, percent low income, historic fossil energy communities) for all census tracts within the 50 U.S. States, the District of Columbia (D.C.), and Puerto Rico. The tabs within the excel file provide a file description, a summary data table (a simplified, easy to use presentation of the four eligibilities criteria), metadata (description, source, and other pertinent details for all variables provided), and a full, detailed data table. Please note that while these data are provided at the census tract level, census tracts do not necessarily have the same physical boundaries as a community but were used as they provide the closest proxy based on publicly available information collected using an empirically robust method. U.S. territories are not listed but are eligible to apply to Communities LEAP. As stated in the Opportunity Announcement, applying communities should describe how they meet the eligibility criteria in their application even if these data do not specifically show that they are eligible.
Communities of color and low-income populations dedicate a disproportionate amount of their income to pay for energy. They also experience more frequent and prolonged service disruptions, impacting community health and safety. When designed correctly, commercial solar + storage installations have the potential to ameliorate these issues. However, utility programs created to support such installations are frequently underutilized because communities often lack the time and resources needed to access them. Further, historically, few utilities have had the motivation and incentives or experience to account for this barrier. RMI provided process support to Solar Energy Innovation Network teams, and described their experiences in accessing these clean energy resources to support historically underserved communities in our latest report. The report also outlines the roles of key stakeholders (e.g., utilities, building owners, and community organizations) in supporting program delivery and recommended practices to collaborate to meet community needs. The report focuses on commercial solar and solar + storage resources, including solar + storage microgrids. These technologies can offer benefits to communities who do not own their own properties. When designed to act as a "resilience hub," they can also support communities in times of electricity disruption. The report includes a step-by-step guide to collaborating with utilities to implement programs for historically underserved customers. Utilities can support these projects with financing assistance, modernized rate designs, and, in the deployment phase, technical assistance for system design and interconnection.
This study assesses cooling strategies in a low-income community in Southern California that lacks air conditioning and struggles with heat and air pollution. We used an urban building energy model and an electric distribution system model to evaluate active and passive cooling measures. The most effective space cooling measures were high-performance air-source heat pumps, cool coatings, window films, and harnessing the space cooling effect from heat pump water heaters. The results show that combining heat pump water heaters with window films and cool coatings reduces heat index hazard hours within buildings by 95 % to 99 % but increases total energy costs (equipment costs plus changes in utility bills) by 20 % to 60 % where the higher end includes building electrical upgrades. These measures also led to increased space heater use during colder months to avoid overcooling. Replacing conventional heaters with air source heat pumps eliminated unsafe indoor temperatures and reduced total energy use, but increased cost by 125 % to 150 %. In total, using heat pumps for space and water heating could reduce primary energy use by up to 57 %. The higher cost of active and passive cooling measures can be mitigated by existing and emerging incentive programs, especially those that support heat pumps. Electric distribution upgrades to support community electrification are estimated to increase utility costs by $\$$25 to $\$$40 per ratepayer per year. The results underscore the potential and challenges of adapting building infrastructure in communities at risk from climate and environmental stressors.
This is a presentation on Low-to-Moderate Income Rooftop PV and Solar Savings Potential in Puerto Rico.
Although tree cover reduces the urban heat island, no global estimate quantifies air temperature reductions by contemporary or future tree cover, currently and with climate change. Here, we estimate these reductions for all 8,919 large urban areas. Current urban tree cover mitigates 41–49% of the maximum potential air-temperature urban heat island that would occur in the absence of tree canopy. Tree canopy reduces summer air temperature by a population-weighted mean of 0.15 ± 0.03 °C, with wide variation (0.0–2.7 °C), benefiting 914 (805–1040, 95% CI) million people by >0.25 °C. Cooling benefits are greater in already cooler areas: high-income countries and suburbs. Current and plausible future tree cover mitigate only ~10% (6.7–18% and 6.3–17%, respectively) of the median mid-century climate-change warming under a moderate emission scenario. Our results suggest tree canopy expansion in densely settled low-income urban areas is necessary for equitable urban heat island mitigation and climate adaptation.
The LA100 Equity Strategies project integrates community guidance with robust research, modeling, and analysis to identify strategy options that can increase equitable outcomes in Los Angeles' clean energy transition. This chapter focuses on housing weatherization and access to cooling as means to achieve more equitable resilience to heat waves during unplanned power outages. Specifically, NREL used weather, housing, and socioeconomic data to characterize LA's residential building stock. We?developed a residential building stock model to simulate the energy use of 50,000 dwellings representing the diversity of housing types, appliances, climate zones, and household incomes across Los Angeles. We then simulated and evaluated the impacts of 10 building envelope and cooling upgrades on indoor temperature - a main cause of heat-induced health risks-over a 4-day power outage during a heat wave. We examined occupant exposure to extreme heat and how heat exposure changes with each upgrade across income, tenure (renter/owner status), building type, and disadvantaged community (DAC) status. We also examined upgrade costs and utility bills. Based on the results of our analysis and community guidance, we identified building envelope upgrades and cooling strategies that could save lives and maintain safe home temperatures for LA's low-income households in the event of a planned or unplanned power outage during a summer heat wave. Research was guided by input from the community engagement process, and associated equity strategies are presented in alignment with that guidance.