Community Solar

Ellensburg Community Solar Project
Ellensburg, Washington

In 2006, the City of Ellensburg municipal utility installed a 36 KW community Photovoltaic (PV) system, the first of its kind in the nation, in an effort to harness the 300 days of sunshine the region experiences to power their local homes and businesses.  As Gary Nystedt, Resource Manager for the City of Ellensburg and organizer of the Solar Community Project puts it, “Produce the power where you use the power.”  An important aspect of this story is that everyone in Ellensburg  has the opportunity to invest in this locally produced clean electricity.  The project uses an innovative and unique financing approach—families, individuals, and businesses in the community have been asked to partner with the city to help fund the project. 

In exchange for their financial support, the city gives the contributors a financial credit on their electric bill for the value of the electricity produced by the solar system. For instance, if a customer contributes 3% of the total funds contributed by local residents and businesses, that contributor will receive the dollar value of 3% of the power produced by the solar project.  The Ellensburg Community Solar Project began generating power in November of 2006, and has since produced more than 170,000 kilowatt-hours, averaging 58,000 kilowatt-hours, annually.

 In May 2009, Washington passed SB 6170, effective July 1, 2009. With the passage of this legislation, community solar projects will be able to receive the production incentive after an official rulemaking procedure in the fall. Community solar projects are defined as solar energy systems owned by local entities and placed on local government property or owned by utilities and funded voluntarily by utility ratepayers.

The base rate for community solar projects is $0.30/kWh and the multipliers are the same as those used for other renewable energy technologies. The actual production incentives range from $0.30/kWh to $1.08/kWh, as the incentive rate is higher for modules and inverters manufactured in Washington.  Each participant in the community solar project can apply to receive this incentive and may receive up to $5,000 per year. 

The Washington Department of Revenue (DOR) is responsible for submitting a report measuring the impacts of this legislation, including any change in the number of solar energy system manufacturing companies in Washington, and the effects on job creation, such as the number of jobs created for Washington residents.