Cedar Falls Utilities, a municipally-owned utility in Iowa, connected a 1.5 MW community solar farm to the grid and leased shares to customers
The “Simple Solar” program produces about 2,600 megawatt-hours of energy annually, about 0.5% of the city’s total electricity use
Simple Solar was launched to make renewable energy available and affordable to everyone and is one of the biggest solar arrays in Iowa
Because the Simple Solar program sold out quickly among residents, the utility began selling a few hundred additional units
Cedar Falls Utilities, a municipal utility in Iowa, serves the city’s 40,000 residents with electricity, gas, water, and telecom services. In 2016, they connected a 1.5 MW community solar farm to the grid and offered customers the opportunity to lease shares of the system. Originally planned to be smaller, the project expanded to its current size due to high customer demand during the planning stages.
The eight-acre solar farm, named the “Simple Solar” program, was built on land donated by the City of Cedar Falls and is expected to generate approximately 2,600 megawatt-hours of energy annually, which is enough to power about 275 homes, or 0.5% of the city’s electricity usage in 2015.
The Simple Solar program was launched to make renewable energy accessible and affordable for everyone.
Customers had the option to purchase a 20-year lease on a 170-watt unit, equivalent to 60% of a solar panel, for $270. They could either pay the full amount upfront or spread the cost over 12 months with no interest, added to their utility bill. This on-bill financing option was popular, with three out of four subscribers choosing this method, reflecting the success of a similar energy efficiency program the utility ran in 2008-09.
Community solar works by allowing individuals and businesses to purchase or lease a share of a larger solar farm. These participants, known as subscribers, receive credits on their electricity bills based on the amount of energy generated by their share of the solar farm.
The energy produced by the community solar farm is fed into the local utility grid, and subscribers get a monthly bill credit for their portion of the power generated. This allows them to benefit from solar energy without needing to install solar panels on their own property.
The program is designed to make renewable energy accessible and affordable, with flexible payment options such as paying upfront or through no-interest monthly installments added to the utility bill.
Unlike many solar photovoltaic systems, this building needed a unique arrangement of solar panels on the facade and canopy, featuring custom sizes and shapes.
The solar cells that make up the panels were manufactured from recycled silicon which helped the building team reach its goal of using 50% recycled-content building materials. The panels were also manufactured less than 150 miles from the building site. The solar electric systems are sized to meet 5% of the building’s nonresidential electric load in common areas such as hallway lights and mechanical systems.
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Cedar Falls Utilities made 6,516 solar panels available to the public and the rest went to wholesale and retail customers. Over 1,250 residents and businesses subscribed to the solar farm. Customers were able to track solar credits and on-bill subscription payments with a software in Cedar Falls Utilities’ Oracle Customer Care & Billing system.
In Iowa, about half of utility customers don’t have the option for solar because their roof is shaded, they rent, or don’t have the credit to borrow from the bank, or lease a Power Purchase Agreement (PPA). Buying units of electricity generated by a solar garden is a practical, pay as you go solution.
To promote the Simple Solar program, Cedar Falls Utilities involved customers early in the community solar planning process through a comprehensive outreach effort aimed at attracting subscribers. The utility also engaged in extensive community outreach, participating in farmers markets and giving presentations at the University of Northern Iowa.
Cedar Falls Utilities staff were actively involved in these events, providing information about the project, highlighting its benefits, and answering any questions from potential subscribers.
Cedar Falls Utilities purchases the energy produced by the community solar farm under a 25-year power purchase agreement (PPA) with RER Energy Group, the private developer responsible for building the array.
This financing arrangement allows the developer to take advantage of the 30% federal Investment Tax Credit (ITC) available for solar projects, which Cedar Falls Utilities, as a tax-exempt entity, cannot directly access. After the tax benefits have been fully utilized, Cedar Falls Utilities has the option to buy the solar array from the developer.
“Customers who invest in Simple Solar units enjoy benefits similar to a rooftop solar installation but can do without maintenance or commitment.”
Matt Hein, Cedar Falls Utilities Energy Services Manager
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