On Tuesday, Alaska Governor Mike Dunleavy signed Senate Bill 152 into law, creating a framework for adopting community solar projects in the state. The measure cruised through the Legislature back in May, indicating increasing support for renewables in The Last Frontier, yet Alaska still lags behind much of the United States when it comes to IRA-driven renewable energy investment.
According to the U.S. Department of Energy, just two such announcements have been made during the Biden-Harris administration: Graphite One, a $75 million battery project in Nome, and an LG investment in heat pumps and clean HVAC in Fairbanks.
The Center for American Progress’ Biden Administration Investment Tracker highlights a robust pipeline of grant money flowing into Alaska, especially through DOE’s Office of Clean Energy Demonstration and its Energy Improvements in Rural or Remote Areas program, but shows just one other private investment: Renewable IPP’s flagship project, the $200M 8.5 MW Houston Solar Farm.
Renewable IPP CEO Jenn Miller previously appeared on an episode of the Factor This! podcast from Renewable Energy World to discuss possible solutions to clean energy’s gender imbalance.
New analysis from E2 shows five states are home to 20 or more IRA-driven projects: Michigan, Georgia, South Carolina, Texas, and North Carolina. Six additional states are home to at least 10 projects: Ohio, Tennessee, California, New York, Indiana, and Arizona.
Dunleavy inked the bill in South Anchorage on the site of the Chugach Electric Association’s proposed 500-kilowatt community solar project, which is expected to become operational next year. Chucagh, Alaska’s largest utility cooperative, initially saw the project rejected by the Regulatory Commission of Alaska (RCA) in 2019 but it has since rekindled public interest. The RCA approved the utility’s request for an initial three-year pilot period earlier this year. Chugach told the Anchorage Daily News it could expand its community solar program if it proves successful.
“Our members have shown great interest in a community solar project for several years,” noted Chugach CEO Arthur Miller, who says community solar projects could help the utility meet its goal of reducing 2012-level carbon emissions by 35% by 2030 and 50% by 2040.
The utility anticipates member applications to be accepted starting October 1 and for construction on its community solar project to be completed by the end of this year. Chugach intends for the program to be online by March 1, 2025.
What’s in Senate Bill 152?
Alaska is the 25th state to enact community solar legislation.
Senate Bill 152 aims to establish a framework for Alaskan community energy facilities and specifically targets electric utilities under the jurisdiction of the RCA, which oversees rates in the state. SB 152 tasks the commission with writing regulations for community solar projects within a year. It outlines how community solar regulations would pertain to Alaskan utilities, exempting small independent electric systems and specific portions of distribution systems if they’re deemed necessary for overall system stability.
SB 152 mandates those utilities under its purview to offer a community energy program (with an emphasis on renewable sources not limited to solar) to subscriber organizations seeking interconnection. The programs must be approved by the RCA and will be restricted per the total capacity of available community energy facilities. The legislation outlines how utilities should bill subscribers in adherence to approved tariffs, noting they’ll be prohibited from imposing additional fees to community energy users without first getting approval from the Commission. Utilities will be allowed to request rate design changes but have to show that they won’t adversely impact customers who opt not to participate in the programs.
The bill allows the RCA the ability to modify or waive requirements, set safety standards, and approve community energy plans as needed. Those plans must meet criteria ensuring fairness, consumer protection, and accessibility and include specific provisions accommodating low-to-moderate-income households.
What’s happening up there?
According to the Solar Energy Industries Association, Alaska currently ranks 50th nationally for solar, slipping from 48th in 2023. Only 3,646 homes in the state are solar-powered, and Alaska derives just .38% of its total electricity from solar energy (about 30 MW). SEIA tabulates total solar investment in the state at a mere $68 million.
But it seems like investment is finally starting to reach Alaska, two years after the IRA was signed into law. Look at this:
Compared to the state’s last decade, annual solar installations skyrocketed last year, led predominantly by nearly 9 MW of added utility-scale solar.
On Earth Day in April this year, the Environmental Protection Agency awarded $125 million to the Alaska Energy Authority, the Alaska Housing Finance Corporation, and Tanana Chiefs Conference to construct solar farms and battery storage sites across Alaska. The funding was part of the EPA’s national $7 billion Solar for All program.
According to the Anchorage Daily News, renewable energy organizations have reported a recent sharp uptick of interest in solar panels in Alaska.
SB 152 isn’t the first renewable energy bill to cross Governor Dunleavy’s desk this year. He recently signed a bill into law that sets up a clean energy project fund within the Alaska Housing Finance Corporation, and another earlier this year that exempts large new renewable energy projects on the Railbelt from having to pay local property and sales taxes.
