NOLA.com: Community solar gets new life after New Orleans City Council vote to overhaul program

A long-dormant “community solar” program could get new life after a New Orleans City Council committee agreed to changes that will allow developers to get a more favorable rate for solar energy in a bid to meet climate goals and help renters tap into solar benefits.

The council established the program in 2018. It was envisioned as a way to let low-income residents and renters benefit from solar, even if they can’t afford to install panels on their own roofs.

The way it works is developers build a solar array in the city and feed the power into the local grid. Residents buy shares of the project and, in turn, they get a credit on their Entergy bill.

But the program has not resulted in a single project since 2018. Advocates and council officials say that’s largely because the rate that Entergy New Orleans was required to pay the developer for power was far too low to make the numbers work.

The rule changes passed Monday raise that rate from around 7 cents per kilowatt hour to the full retail rate for power, which the council estimates at about 12 cents. Portions of the project slated for low-income customers would also garner an additional 2 cents – or double the current rate. Together New Orleans, a grassroots advocacy group, pushed for the rule changes, working with council staff and packing the council's chambers Monday. The group hired experts to study community solar programs and support the increased rate.

If the program works as intended, advocates believe residents who participate will lower their electric costs, because the costs for large-scale solar have dropped in recent years. Residents have complained of soaring bills in recent years, as hot summers, high gas prices and added charges to restore the grid after hurricanes have converged to raise costs.

The council’s five-member Climate Change and Sustainability Committee unanimously approved the changes Monday. The full council will likely vote early next month on the plan.

“At the end of the day I think community solar can be a real game-changer for this city,” said Councilmember Helena Moreno.

Leaders of the Sisters of the Holy Family church in New Orleans East sought to build a community solar project about a year ago. But Sister Alicia Christina Costa said Monday the numbers didn’t work because of the low rate.

“The rules made those projects impossible,” she said. “We believe with the proposed rules you’re considering today, our community solar project will move forward.”

The Orleans Parish School Board also supports the change, and is eyeing solar projects at school sites.

The council has sought to incentivize solar projects in the city in an effort to transition away from fossil fuels. Together New Orleans is also pursuing a “community lighthouse” program that is slated to put solar arrays and batteries on 86 community centers around the city to help people access power after hurricanes.

The community solar program could receive a boost from the bipartisan infrastructure bill passed by Congress in 2021. The state is seeking to tap into a $7 billion “solar for all” fund that is destined for low-income solar programs.