The Biden administration on Wednesday announced a set of initiatives aimed at connecting the clean power of community solar projects to low-income families already enrolled in federal housing assistance programs, with the goal of cutting their utility bills by 10% to 50%.

First on the list were new guidelines from the Department of Housing and Urban Development that will allow families in “HUD-assisted rental housing” to subscribe to community solar projects that use virtual net metering to provide savings on the families’ utility bills. The guidelines ensure that those savings will not be included in the calculation of families’ household income or utility allowances, which could increase their housing costs.

Based on HUD guidelines recently rolled out in Illinois, New York and Washington, D.C., the first-ever national guidelines will set “the stage for 4.5 million families to reap the benefits of community solar,” according to a White House fact sheet.

“The combination of extreme heat and rising utility prices creates a perfect storm, and HUD-assisted families and communities are some of the most vulnerable,” Secretary Marcia L. Fudge said in a press release announcing the guidelines. “The steps announced today … will not only help families reduce utility costs, but also provide an opportunity for HUD-assisted residents to participate in the clean energy economy through local community solar programs.”

In a second initiative, the Energy and Health and Human Services departments will team up to develop an online platform to help households in the Low Income Home Energy Assistance Program (LIHEAP) and other low-income assistance programs sign up for community solar projects in their areas. Administered by HHS, LIHEAP helps low-income families with heating and cooling costs, as well as weatherization and energy-related home repairs.

DOE and HHS will collaborate with five states — Colorado, Illinois, New Jersey, New Mexico and New York — and D.C. to design and pilot the Community Solar Subscription Platform, according to a DOE press release.

The states were chosen because they already have programs supporting low-income community solar development, the release said. DOE is targeting bill savings of 20% in Illinois, New Jersey, New Mexico and New York, and 50% in Colorado and D.C.

“Community solar programs are essential to the expansion of renewable energy across the state of Illinois and the entire nation,” Illinois Gov. J. B. Pritzker said in the release. “By supporting low-income communities who want to participate in this program, we can increase energy efficiency in the long term and provide impactful access to cost-saving solar energy for the households … that need it most.”

“The implementation of community solar is critical to creating a future that promotes healthy, renewable and sustainable living,” said D.C. Mayor Muriel Bowser. “By working with property owners, especially of multifamily affordable homes, and local businesses, we can ensure our future is a clean and resilient one.”

DOE released a request for information for the platform, also on Wednesday, seeking input on questions such as which stakeholders should be included in developing the platform and how to “ensure all subscriptions protect customer privacy and provide adequate monthly savings.”

The department also announced $10 million in funding from the Infrastructure Investment and Jobs Act, for new workforce development programs “that bring together employers, training providers and labor unions to support pathways to the solar industry to recruit, train and retain an inclusive workforce.”

According to the 2021 National Solar Job Census, released Tuesday by the Interstate Renewable Energy Council, the industry is lagging on diversity. For example, women accounted for 29.6% of the solar workforce in 2021, compared to 47% economywide, and African Americans were 8.2% of the solar workforce, compared to 12.3% economywide.

Making Solar Accessible

Following President Joe Biden’s recent vows to use all executive powers at his disposal to fight climate change, Wednesday’s announcements were modest in scale and likely impact, but still strategic — framing clean energy as a key tool to cut energy bills for vulnerable, low-income communities in the midst of ongoing summer heatwaves. (See Biden: ‘I Will not Back Down’ on Climate Action.)

Heat.gov, a new website launched by the Commerce Department’s National Integrated Heat Health Information System, showed close to 48.5 million Americans under extreme heat warnings on Wednesday.

The U.S. has 3,200 MW of community solar projects spread across 39 states, though figures from the National Renewable Energy Laboratory show that 74% of the market is concentrated in Florida, Minnesota, New York and Massachusetts.

These projects have long been seen as a way to make solar accessible to low-income families and others who may live in rental housing, or any homeowner who cannot or does not wish to install rooftop panels. Consumers subscribe to a community project, often located in or near their city or town, and receive credits on their utility bills for a share of the power produced.

Credits are typically calculated by “virtual net metering,” that is, treating the subscribers as if they were putting the solar on the grid. D.C.’s model Solar for All program uses virtual net metering to provide subscribers to its community solar projects with savings of 50% on their utility bills.

On a typical utility bill, these credits would be listed separately from a consumer’s actual energy consumption. According to the HUD guidelines, in such cases the amount of the credits should not be included in the calculation of a family’s household income, used to determine their eligibility for federal housing assistance. In other words, low-income families will not be penalized for saving on their utility bills.

Reactions from solar industry advocates were mostly positive.

Solar Landscape, a community solar developer in New Jersey, guarantees at least 15% savings on utility bills for its subscribers, according to the company’s website. “The coming wave of clean energy is also affordable,” said Shaun Keegan, the company’s CEO. The new initiatives will “protect and empower underserved communities — those most hurt by climate change and pollution from fossil fuels.”

Jeff Cramer, CEO of the Coalition for Community Solar Access, an industry trade group, praised the White House for doubling down on its support for community solar. “The new executive actions highlight just how versatile community solar policy can be to help states achieve their specific energy goals,” he said.

Similarly, Sean Gallagher, vice president of state and regulatory affairs at the Solar Energy Industries Association, commended DOE for taking targeted action and creating a program that addresses one of the top challenges for obtaining community solar customers.”

But Gallagher said that some low- and moderate-income families might not be able to benefit from the initiatives due to “the burdensome and lengthy signup process to qualify as an LMI household,” and recommended loosening eligibility requirements.