Grand Valley Power is a rural electric cooperative in Colorado that developed two community solar projects: a self-developed 17 kW, 88-panel solar farm and a 22 kW, 122-panel community solar farm for low-income families.
By offering on-bill financing, Grand Valley Power has made it easier for members, especially low-income households, to participate in and benefit from solar energy without facing large upfront costs.
The solar projects have improved the cooperative’s ability to provide reliable and sustainable energy services to its members, aligning with evolving business models and energy demands.
The projects created local jobs during the construction and maintenance phases, contributing to the local economy.
The Grand Valley Power’s first community solar development was built using their own capital and human resources. The total project cost was $77,500. To join the solar farm, community members could subscribe to a share of the solar farm, which means they are essentially leasing a portion of the solar panels and the energy they produce.
When the co-op marketed the project through radio ads, their website, and monthly newsletter, they only managed to lease 20% of the array to its members in the first year. Many members weren’t willing to pay $800 for the upfront subscription fee. So instead of paying $800 all at once, the co-op offered an “on-bill financing” option where they pay $15 a month for five years. This payment is included in their regular utility bill, making it easier for more people to participate.
Grand Valley Power partnered with non-profit GRID Alternatives to build a 122-panel (24 kW) community solar farm exclusively for low-income co-operative family members to provide low-cost solar energy. GRID Alternatives focuses on making solar energy accessible to low-income households.
Co-op members who earned less than 80% of the Area Median Income ($48,000 for a family of four in Mesa County in 2015) could join the solar program without paying anything upfront. They only needed to:
In return, the seven families who participated each received an equal share of the solar system for the first four years.
Solar subscriptions quickly doubled after the co-op introduced the on-bill option and eventually sold out.
To qualify for the pay-over-time option, members had to have a good payment history with the utility. No credit checks were required, they just need to be in good standing with no holds on their accounts. Whether they pay upfront or over time, subscribers receive a bill credit of $4 each month for the energy produced by their share of the solar farm.
Participants in the program can leave at any time without incurring fees or penalties, even if they stop making on-bill payments. If they relocate outside the co-op’s service area, the co-op will repurchase their solar panel share. So far, no participants have canceled or requested buy-backs.
Grand Valley Power considered extending the on-bill payment period from five to 20 years. This change would have matched the monthly payments with the solar bill credit, effectively creating a cost-neutral arrangement for members. However, the co-op ultimately decided against this due to the increased uncertainty and risk associated with longer-term loans.
Each share, consisting of the output from 16 solar panels (3.5 kW), saved each household about $600 per year on electricity. Around $110 of these savings went back to the co-op and GRID Alternatives to cover program management costs.
After four years, participants leave the program so the solar panels can be given to new qualifying families. The low-income solar program is designed to be temporary, helping families save on electricity costs and improve their financial situation.
Since both solar farms are fully subscribed, Grand Valley Power plans to expand. They may add another 50-60 kW to the original 17 kW array.
Grand Valley Electric Power financed the self-developed solar farm and the low-income solar project with on-bill financing. On-bill financing is a method where customers can pay for energy efficiency improvements or renewable energy installations through their utility bills.
In this context, Grand Valley Electric Power offers an on-bill financing option for their community solar projects. This means that members of the cooperative who participate in these solar projects can pay for their share of the solar installation costs over time through their regular utility bills, rather than having to pay the full cost upfront.
This approach makes it more accessible, especially for low-income households, as it spreads out the financial burden and ties payments directly to the savings generated from the solar energy.
GRID Alternatives provided the capital for the solar array through a grant from the Colorado State Energy Office as well as volunteers for construction and outreach. Grand Valley Power Provided.
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