Association for Public Policy Analysis & Management

Solar photovoltaic (PV) energy has become a topic of intense policy debate at the state level in the United States (U.S.). Solar supporters have pointed to the economic development, environmental, and public health benefits this technology can provide. However, electric utilities and other interests have fought to scale back or cut favorable state PV policies as grid-connected solar PV installations have increased, due to decreased profits, grid complications, and customer fairness, among other reasons. This research focuses on community net energy metering as a policy to facilitate community shared solar, which is an innovative policy approach that allows multiple consumers to share the costs and benefits of ownership in an off-site solar PV facility, opening market access to a wide variety of individuals. Community shared solar has been shown in prior literature to achieve economies of scale, ideal project locations, collaborative emissions reductions goals, and enhanced community cohesion, among other positive attributes. However, only 14 states plus the District of Columbia currently allow community net metering and shared solar implementation via formal state legislation. Using a punctuated equilibrium framework and semi-structured telephone interviews with policy experts across the U.S. from the solar industry, environmental groups, government, and electric utilities, this research discovers that electric utility lobbying and an overall lack of attention have hindered community solar enabling legislation. However, opportunities exist for future development via increased participation, collaboration, and key events that may alter the policy equilibrium. Such research is useful in understanding how historically laggard states may adopt community net energy metering or shared solar legislation in the future.