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Pallets of PV: Communities Purchase Solar and Drive Down Costs Together

Karlynn Cory, NREL
May 15, 2012  |  4 Comments

Think of it like Costco or Sam's Club for purchasing solar photovolatics (PV). Some savvy folks in Oregon thought it would be a great idea to buy PV in bulk for their neighborhood to get a big volume discount and share the savings with neighbors.

So they created the Solarize campaign, which over the last three years has helped Portland add "[more than] 1.7 MW of distributed PV and [establish] a strong, steady solar installation economy." In fact, so successful was the Portland model that several other communities started their own Solarize campaigns, including Washington State; Massachusetts; Vermont; San Diego, California; and multi-city campaigns from One Block Off the Grid and GroupEnergy.

All of the great details, including how to set up your own program, are laid out in "The Solarize Guidebook: A Community Guide to Collective Purchasing of Residential PV Systems," released in May 2012. This roadmap is for state and local governments and community leaders wanting to create a program to buy PV in bulk. It describes how Solarize Portland executed its program, explains how other neighborhoods across the United States are building off their efforts, and describes the steps needed to have a successful campaign in six months or less. This report is an update to a previous version published in January 2011 and includes new info on lessons learned not only in Portland, but across the other 1,960 Solarize installations.

The key to Solarize's success is that it directly tackles three major market barriers: (1) high upfront cost, (2) complex solar purchasing options, and (3) customer inertia (i.e., it is easier to do nothing than do something). Some of the key success elements include: (1) competitive contractor selection led by the community, (2) community-led outreach and education, and (3) making it a limited time offer (so you have to act now!). And how well did the bulk purchasing work?  Solarize Portland drove solar market costs down by 30 percent - 35 percent as compared to before the program.

By offering system financing to participants, Solarize campaigns tap a larger market for PV. Different ways to provide financing include low/no-interest municipal loans, bank or credit union loans, solar leases, third-party power purchase agreements (PPAs), or even utility loans. The right type of financing will depend on your local community, your partners, and how actively they want to be engaged.

And the best part about the guide? After each case study, it includes contact information for the folks on the ground, so communities can get answers to all of their questions.

So for anyone interested in buying PV in bulk — there is a clear way to do so, even if the warehouse or home improvement stores can't help you out today.

This article was originally published on NREL Renewable Energy Finance and was republished with permission.

4 Comments

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ANONYMOUS
July 27, 2012
Crediting Solarize with the cost reductions you cite is kind at best, blind to market realities at worst. Installation and equipment costs during from 2009-2012 dropped dramatically w/o ANY involvement of Solarize--NONE.
This is a pat yourself on the back mentality that solar apostles can't get away from. 1BOG is another example of "success" assumed to be the result of group purchasing--similar to a stock picker during a HUGE bull run (they look very smart then).
John Ihle
John Ihle
May 17, 2012
Programs like these are great for community awareness/outreach. Bringing installed costs from 10 bucks/watt to 6 bucks makes solar more affordable but still way too high for most end users. With all the r&d happening in pv perhaps the costs will come down considerably over the next few years.

Projects like these underscore that solar is an easy sell when it's affordable. I'd like to see marketing efforts to include the npv cost (in clean energy projects) of energy over the course of the projected lifetime as well.... in comparison to projected cost of energy in a "business as usual" scenario utilzing traditional sources of energy (all things considered to include, EPA rules, inflation, transmission costs, etc)going out over the same period. It may serve as wake up for legislators and in the meantime incentivize end users even more once costs come down to where you need fewer subsidies. I think that day is coming.

Polls indicate that Americans support renewable energy, however, most people are motivated by their pocketbook and when you can demonstrate economic value with or without subsidies renewables will be an easy sell.
M. Derya Tarhan
M. Derya Tarhan
May 16, 2012
I believe that is a great idea that should be implemented on a global scale. Higher public participation; economic benefits (direct and indirect); a safer, more reliable and decentralized grid; lowering of PV system prices, the merit order effect, and eventually lower electricity prices in the long term; and obviously, environmental benefits.

So I thank you so much for a great article, which will serve to share the word. If you wants to find out about similar projects and other project and policy updates regarding community-owned power generation and consumption, you may visit The Community Power Report at http://thecommunitypower.blogspot.ca/, look it up on Twitter (https://twitter.com/thecpreport) and Facebook (http://www.facebook.com/thecpreport)
William Fitch
William Fitch
May 15, 2012
Hi: GREAT idea!! Now we need 1000 more...

.....Bill

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Karlynn Cory

Karlynn Cory

Karlynn Cory is the National Renewable Energy Laboratory’s Project Finance Team Lead. She has over 15 years of research and analysis experience in renewable energy policy and markets, including feed-in tariff programs, renewable energy...
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