Five years ago, many people in the electric industry viewed solar energy as a kind of “boutique” resource––more an energy accessory than a real power supply option. But in the last half-decade, as the costs to install solar went down and electric utilities gained experience with this unique energy resource, there has been a dramatic transformation, and solar energy has made the jump to the big leagues.
At local electric cooperatives, consumer-members were asking questions about whether this new technology would be suitable either for their own home or for the cooperative.
Given the high cost to install solar, electric co-ops had questions about the economic feasibility of solar and its effect on the electric system. Even with federal tax incentives, the cost of solar was not competitive with other resources such as wind and natural gas.
To answer these questions, co-ops started installing small arrays, analyzing costs and efficiency. Five years ago, compared to other resources, many concluded solar was still simply too expensive.
The cost of panels and equipment was not the only reason solar was expensive. There were also soft costs, like training, business processes and software. There was little standardization among solar projects––every project was unique. Engineers and resource planners, unfamiliar with this technology, needed training and technical assistance. Financial partners still needed convincing when it came to investing in large-scale solar projects.
In 2014, 17 electric co-ops joined with their national trade organization, the National Rural Electric Cooperative Association (NRECA), to collaborate on solar installations in 10 states whose combined solar capacity would be 23 megawatts. The goal of the project was to make solar more affordable for electric co-ops by driving down the soft costs.
Tracy Warren writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the national trade association representing more than 900 local electric cooperatives. From growing suburbs to remote farming communities, electric co-ops serve as engines of economic development for 42 million Americans across 56 percent of the nation’s landscape.