Municipal Solar + Storage Resource Guide
Planning Guidance for Municipalities Interested in Solar + Storage
2024
Produced by: Metropolitan Area Planning Council (MAPC)
Funded by: Green Communities | Massachusetts Department of Energy Resources
This Municipal Solar + Storage Resource Guide is intended to help municipal staff, energy managers, program managers, and other community leaders navigate the complex landscape of solar + storage planning.
This Guide is designed to build the capacity of local municipal staff and accompany users from initial contemplation of a solar + storage project into the procurement stage. It provides foundational knowledge and essential tools to guide comprehensive planning.
With this resource, municipalities can make more informed decisions when approaching solar + storage in their communities.
Who Should Use This Guide?
Municipal Planners, volunteer committees, and partner organizations aiming to better understand the nuances of solar + storage planning and procurement.
For questions or comments, please reach out to: [email protected].
Table of Contents
Produced by:
Funded by:
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This section provides an overview of key terms, overarching decisions that should be researched, and links to more comprehensive resources. Each community will require a customized approach with changing guidance and technologies. It is important to continue research and remain flexible with updated findings on solar + storage best practices.
Why Pair Solar with Storage?
What is Solar + Storage?
Key Terms
Additional Resources
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Integrating storage into a solar project offers a wide range of benefits, including energy resilience, demand management, and cost reductions. Though co-location increases the cost and complexity of a solar project, when taken from the outset, it can effectively lower costs by facilitating the sharing of hardware components and reduce expenses related to site preparation, labor, and/or interconnection and permitting processes.
Understanding the potential challenges of a solar + storage project allows managers to make better informed decisions.
See the Insights from Managers section for reflections and guidance from project managers.
Storage Benefits
Storage Challenges
Frequently Asked Questions (FAQs)
Municipal Perspectives on Overcoming Hurdles
MAPC conducted six interviews with municipal staff across the region who are in various stages of implementing solar + storage projects to better understand the challenges they faced or are facing.
In summary, staff emphasized the importance of building relationships with the utility early in the process; creating a support system with other municipalities working on similar projects; anticipating pushback and being prepared to answer common questions; packing in buffers to the timeline; and understanding funding sources and newer technologies.
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Guidance on Communicating with the Public
Effectively communicating with the community during the planning process of a solar + storage is an important aspect of any project to ensure transparency, garner support, and address concerns.
This section lists sample responses to frequently asked questions (FAQs) for public engagement.
Community Spotlight
For inspiration, be sure to check out Beverly's solar landing page - which includes fact sheets, live dashboards of solar generation at each solar and solar + storage site, and a presentation to city council.
Sample FAQs from the Public
Below is a list of FAQs aimed to support municipal staff in communicating about solar + storage projects with the public. These questions provide general information and should be tailored to specific communities and solar + storage projects.
The questions listed were informed by MAPC’s interviews with project managers who have installed or are in the process of installing solar + storage projects in the communities.
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Prioritizing equity in a solar + storage project benefits the community. Project managers should meaningfully consider equity when making important decisions such as where the infrastructure will be placed, who will benefit most from the enhanced resilience, and how the project can reduce disparities in access to renewable energy. This section provides guidance on centering equity in the planning process, with a specific example about the City of Chelsea’s equity-driven microgrid project.
What Is Energy Equity?
Energy equity indicates the fair distribution of costs and benefits of an energy system which includes affordability, accessibility to efficient power, access to clean, renewable power, and effective support through energy assistance programs.
Historically underserved populations are more sensitive to higher energy prices and more at risk of shutoffs.
Energy burden, or the proportion of a household’s income devoted to energy-related costs (e.g., heating and cooling), plays a large role in measuring energy equity.
High energy burden means a substantial proportion of household income is spent on energy bills and impacts lower income households more severely.
Building age, type of heating fuel, type of building, and whether someone owns or rents their space are all contributing factors into understanding the scope of one’s energy burden.
Tip: Use Energy.gov's Low-income Energy Affordability Data (LEAD) Tool to visualize and map energy burden in your city/town or census block.
The below chart shows the race distribution of households who experience energy insecurity, or the inability to meet basic energy needs such as heating and cooling a home. Note that energy insecurity is disproportionately experienced by non-white households.
Households by Race Experiencing Energy Insecurity in the United States
Shares of Households by Race Experience Energy Insecurity, 2015 (U.S. Energy Information Administration).
Text for the Chart Image:
Hispanic or Latino: 45%. White Non-Hispanic or Latino: 25.4%. Asian: 20.4%. American Indian or Alaskan Native: 61.5%. Native Hawaiian or Other Pacific Islander: 50%.
Community Spotlight: Chelsea
The City of Chelsea is in the process of installing a microgrid after Hurricane Maria severely compromised grid reliability and infrastructure in Puerto Rico in 2017. Many of Chelsea’s Puerto Rican residents looked to the city for a plan in the event of another natural disaster and, as a result, energy resilience became a top priority. Enhanced resilience was especially important for residents who have limited mobility during an emergency.
Engagement techniques which center equity in the planning process include education, gathering public input on interest and knowledge of community resilience, constant contact with stakeholders such as affordable housing units which will ultimately prioritize renters in decision-making, and more.
Read more about the community microgrid here and watch MAPC’s Accelerating Climate Resilience Speaker Series program which highlights the progress and success of the microgrid and how they are expanding this model to other communities. Listen here to Microgrid Manager, Sari Kayyali of GreenRoots, Inc.
Centering Equity in Energy Planning
Centering equity in a community is preceded by equitable community outreach and engaging with knowledge of local cultural, linguistic, and/or accessibility aspects. Municipal leaders should invest in an equitable community engagement strategy to develop the mission, impact, and purpose of the project.
There are various opportunities in the planning process to consider and advance equity, such as:
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Selecting a location for solar + storage systems require careful consideration of various factors, including solar potential, ownership, proximity to grid, and equitable distribution of benefits. The steps below, adapted from the San Francisco Resilient Solar & Storage Roadmap, offer guidance and key considerations for selecting suitable solar + storage locations.
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This section provides guidance on financing a solar + storage project, including contracting options, current financial incentives, and the importance of valuing resilience.
Programs and incentives change often so it is important to stay up to date and seek further guidance if needed.
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Potential Contract Structures
Financial Incentives
Valuing Resilience
Did You Know?
In 2020, a revision to the Solar Massachusetts Renewable Target (SMART) Program added an "energy storage adder" mandating all solar projects greater than 500 kW to be co-located with energy storage in order to apply for SMART incentives.
Potential Contract Structures
Whether to purchase or lease a solar + storage system is an important consideration a municipality must make in the installation process. There are various contract options available, each with their own advantages and considerations. The figure below highlights the landscape of different contracting options.
Summary of various contracting structures (DOE’s On-Site Energy Storage Decision Guide).
More Resources
Learn more about financing options.
- Energy Storage Financing for Social Equity, Pacific Northwest National Laboratory (2022).
- Energy Storage System Pricing, Department of Energy (2021). A chapter of the Energy Storage Handbook.
Owning, Leasing, and Power Purchase Agreements
Most municipalities currently lease their solar + storage systems, meaning they own the power produced, but not the equipment. However, emerging federal and state financial incentives and legislation could enhance the financially feasibility for municipalities to own their own systems. Despite direct pay incentives, some municipalities might still opt to lease, particularly when cash is needed for other pressing initiatives.
Power Purchase Agreements (PPAs) that include storage are fairly new, but they exist. PPAs differ from leasing in that there is not a fixed monthly payment but rather PPA payments vary as electric outputs vary. PPAs are still available even when a solar project is not on government property and may be referred to as ‘off-site’ PPAs. Federal incentives, such as those included in the IRA, can also be applied to PPAs. As noted by the Office of State and Community Energy Programs:
“Whether the government chooses a PPA or to own the solar project itself, the federal renewable electricity incentives in the [IRA] can still be applied to the project. Prior to passage of the IRA in 2022, the solar project needed to be owned by a tax-paying entity to be eligible for the solar investment tax credit, but the IRA includes a ‘direct pay’ provision that allows state, local, and tribal governments and other organizations that do not pay federal taxes to receive equivalent credits.”
Financial Incentives
This section outlines grants and other opportunities to fund solar + storage projects. There are additional pathways to installing solar + storage not listed here that could be pursued, such as accumulating capital, working with local lenders, partnering with economic development entities, and/or demonstrating a strong regional economic model.
Grants
Incentives/Rebates
Private Financing
Additional Funding Sources
Stay up to date on additional funding opportunities and state or federal incentive programs. Refer to the Massachusetts Energy Rebates & Incentives webpage and subscribe to MAPC’s Clean Energy monthly newsletter for updates to your inbox.
Valuing Resilience
Municipalities often highlight funding challenges as a major hurdle when planning for solar + storage, particularly when using “resilience” as the key driving force. This is primarily due to the complex co-benefits of resilience and the absence of a standardized valuation methodology. The following tools aim to facilitate discussions in overcoming this challenge. Refer to Storage Benefits section for more information.
Resources to Educate Funders on the Value of Resilience:
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This section shares examples for municipalities seeking inspiration and practical insights for their own solar + storage initiatives.
Want to feature your solar + storage project? Contact [email protected] with your project details.
Project Type |
Public Building |
Municipality | Medford, Department of Public Works (DPW) Building |
Solar + Storage Details | 235kW PV solar array; 100kW/255kWh battery storage |
Details | In 2018, the City of Medford contracted Solect Energy to install a PV solar array on the roof of the DPW building. A year later, the City received additional funding to purchase and install a storage battery. The solar + storage project enables Medford to participate in Automated Demand Response programs, helping to reduce electricity demand charges, while providing additional revenue for the City. |
Funding | $833,366 through the DOER Community Clean Energy Resiliency Initiative Grant |
For more information… | https://www.smartenergydecisions.com/energy-management/2019/03/29/city-of-medford-to-add-solar-storage-microgrid |
Insight from Solar + Storage Project Managers
This subsection includes a compilation of feedback and key takeaways gathered from interviews conducted with experts and project managers who have either completed or are currently in the process of installing solar + storage projects.
Thank you for using this resource. Please direct any questions or comments to [email protected].
Acknowledgements
This resource was developed and informed by desk research and interviews with Metro Boston area municipal staff, Massachusetts Clean Energy Center (MassCEC), Department of Energy Resource (DOER), and more. We would like to extend gratitude and acknowledgement to the following:
- Kate Crosby, Energy Manager – Acton-Boxborough Regional School District
- Dwayne Breger, Director – University of Massachusetts Amherst Clean Energy Extension
- Ibrahim López-Hernández, Sustainability Manager – North Suffolk Office of Resilience and Sustainability
- John Harper, Associate Member Energy & Climate Committee – Town of Wayland
- Erina Keefe, Sustainability Director – Beverly
- Ariel Horowitz, (former) Senior Program Director – MassCEC