Backed by Favourable Policies, US Welcomes Largest Community Solar Project

USA has welcomed the largest community solar project in the history of the country.

The idea of solar in the USA is gathering momentum. The credit primarily goes to the Inflation Reduction Act, which has been insturmental in giving a fresh impetus to clean energy in the country. The landmark Act paves the path for provisions for tax credits for solar projects.

Community Solar is also gaining traction rapidly in the country. In 2022, the US reported 5.6 GW worth of community solar installations. As per a study, the US, having recognised the many benefits of shared solar, is capitalising on it. The policies introduced in the country have also been favourable in increasing the solar uptake. As per a policy, solar PV systems installed in 2020 and 2021 were eligible for a 26% tax credit. Last year, however, it saw an increase to 30% for installations between 2022-2032.

The National Community Solar Partnership is another major initiative that is driving community solar installations. It strives to achieve “community solar systems to power the equivalent of five million households by 2025 and create $1 billion in energy savings for subscribers. This target represents a 700% increase in community solar deployment, growing from 3 GW of community solar in 2020 to 20 GW in 2025.”

Against such a backdrop, the USA has welcomed the largest community solar project in the history of the country. The initiative will supply power to as many as 140,000 households while also powering up businesses in the three states of Illinois, Maine and Maryland.

The project was announced by Vice President Kamala Harris on her visit to the solar panel factory of South Korean firm Qcells– a manufacturer of photovoltaic cells. Hanwha Solutions Corp., of which Qcells is a part, had shared at the outset of 2023 that it is looking to invest $2.5 billion aimed at the expansion of its Dalton, Georgia plant. It is also eyeing the establishment of another plant near Cartersville.

Qcells projects will be responsible to provide close to 30% of the cumulative solar panel demand of the USA by year 2027. This will also entail manufacture of solar panel components, that are mostly otherwise made outside the USA. u

The Vice President went ahead and made an announcement about the partnership between Qcells and Virginia-based Summit Ridge Energy. The collaboration will look at the deployment of community solar projects. This will facilitate the generation of 1.2 gigawatts of electricity in the three aforementioned states.

The new plan will necessitate the manufacture of 2.5 million solar panels at the plant of Qcells in Dalton, Georgia, which makes it the largest community solar order in American history.

As per the White House, community solar leads to an average of 10% in yearly savings for customers opting for it.