Several rows of solar panels on Whistle Hill in Soldotna. (Hunter Morrison/KDLL)
A bill to regulate community solar projects is moving quickly through the Alaska Legislature and appears close to becoming law.
Community solar projects are small-scale solar farms that local ratepayers can purchase in exchange for lower electricity bills. Advocates say the model provides affordable, clean electricity to residents in a variety of living situations.
For more than a decade, Alaska homeowners have been allowed to install solar panels to power their homes and sell any excess energy to local utilities, a practice called net metering.
Phil Wight, a policy analyst with the Alaska Public Interest Research Group, said it’s a big deal for homeowners. But he says renters, people with shady roofs or people who can’t afford to install solar panels don’t have the same opportunity.
“Community solar allows everyday Alaskans to invest in solar energy at a centralized facility. People own shares of it and then deduct a portion of the energy produced from their energy bill.
Wight worked with Anchorage Democratic Sen. Bill Wielechowski’s office to draft the bill, which passed the Senate unanimously in late April.
Chugach Electric Association, the largest utility in the state, recently had a community solar project approved by state regulators. Domestic utility Golden Valley Electric Union has also discussed the idea. Wight said passing the bill would speed up the construction process for each project.
“We really want to create a clear regulatory framework in the market for dozens of these facilities to be launched,” Wight said. “Instead of having a project here or there that has to go through this long review every time.”
Wight said community solar could also play a role in alleviating the natural gas shortage Alaska’s Rail Belt is facing.
The Environmental Protection Agency recently awarded a total of $125 million to the Tanana Chiefs Conference, the Alaska Energy Authority and the Alaska Housing Finance Corporation to deploy rooftop solar and community solar projects in the state.
“It’s important to pass this bill so we can take advantage of the federal dollars coming in,” Wielechowski said. He added that he was “pretty sure” the bill would be passed by the end of this session.
The bill awaits a vote in the House Rules Committee.