Solar sharing
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Solar sharing is a way to finance a new solar power plant by pooling the investment resources of multiple people together. The concept was developed to promote new solar energy while at the same time sharing the economic benefits that the energy produces among those who contributed to the projects.[1]
How solar sharing works
[edit]Solar sharing, also known as community solar or solar cooperative, is a collaborative investment model where multiple individuals or entities pool their financial resources to fund the construction of a large-scale solar farm. This approach is particularly popular in agrivoltaic systems, where solar panels are installed alongside agricultural activities. By sharing the costs and benefits, participants can access solar energy production without the need for individual rooftop installations.
In this model, each participant contributes to the funding of the solar project. Once the solar plant becomes operational, the energy generated is sold, often to the grid, and the revenue is distributed among the investors. The division of profits is typically proportional to the amount each participant initially invested.
Solar sharing also allows individuals who may not have the resources or appropriate space (such as renters or homeowners with shaded roofs) to participate in solar energy production. This model has been implemented in various regions as a way to promote renewable energy adoption, increase energy access, and reduce the environmental impact of electricity generation.
Examples of solar sharing
[edit]Several companies around the world have started to implement solar sharing strategies and started producing communal solar power. Some models involve installing solar panels at ground level, in large open spaces. Other companies install the panels on rooftops.
Many solar cooperatives and associations offer either local financing or a few individual plants. These examples operate in Italy, Japan,[2] and the United States.[3]
1. Community Solar Programs
[edit]- Example: In the United States, community solar gardens are popular in states such as Minnesota and Colorado. These programs allow households, especially renters or those without suitable rooftops, to subscribe to a portion of a shared solar farm and receive credits on their electricity bills for their share of the generated power.[4]
2. Agrivoltaics
[edit]- Example: In Japan, agrivoltaics, or solar sharing in agriculture, allows farmers to install solar panels over their fields while growing crops. This approach provides dual-use land for both agriculture and energy production. Solar panels are elevated to prevent light obstruction; ensuring sunlight reaches the crops below. [5]
3. Virtual Net Metering (VNM)
[edit]- Example: In places like California, virtual net metering enables multiple tenants in a building or complex to share the benefits of a single solar installation. The energy generated is proportionally allocated among the users based on their individual consumption or ownership of solar panels.
4. Peer-to-Peer (P2P) Solar Energy Trading
[edit]- Example: In Australia, households with solar panels may sell their excess energy directly to neighbors using blockchain technology. This enables a peer-to-peer (P2P) solar energy trading system, creating a decentralized market for surplus solar energy.[6]
5. Solar Cooperatives
[edit]- Example: In Germany, several cities operate solar cooperatives, where members pool their resources to invest in and share the benefits of solar energy systems. The cooperative collectively owns solar power installations, and members receive dividends from the energy production or lower electricity costs.
References
[edit]- ^ Ucilia Wang (2012-07-03). "Get ready for solar sharing communities". Gigaom. Retrieved 2015-05-20.[dead link]
- ^ Close, Curt (16 October 2013). "Japanese Farmers Producing Crops and Solar Energy Simultaneously". Permaculturenews. Archived from the original on 2014-08-12. Retrieved 2015-05-20.
- ^ Collier, Steven (2013-10-21). "Solar 'Gardens' Let Communities Share Renewable Power – The Great Energy Challenge Blog". Energyblog -nationalgeographic. Archived from the original on 2024-10-28. Retrieved 2015-05-20.
- ^ National Renewable Energy Laboratory (2023). "State, Local, and Tribal Governments: Community Solar". nrel.gov. Archived from the original on October 31, 2024. Retrieved October 17, 2024.
- ^ International Renewable Energy Agency (IRENA) (2024). "Agrivoltaics: Combining Solar Energy and Agriculture". www.irena.org. Archived from the original on October 31, 2024. Retrieved October 17, 2024.
- ^ Rutkin, Aviva (18 August 2016). "Blockchain grid to let neighbours trade solar power in Australia". New Scientist. Retrieved 2024-11-08.