Create a Community LFG Electricity Project

Community, or shared, renewables programs provide a way for local businesses and residences to subscribe to a certain portion of the output from a renewable electricity project. In this way, multiple customers can invest in a renewable electricity project that does not have to be located at their location. As of 2021, the majority of shared renewables projects are solar-based but other sources of renewable energy are eligible in several states.

Criteria:

  • State or utility allows shared renewables and “virtual net metering” and also allow biogas as an eligible resource.
    • At least 12 states and Washington, DC, have a utility program or state law that allows biogas under virtual net metering.

Pros:

  • Customers unable to install renewable energy technology can participate in the program.
  • Project developers are able to use the subscription fees to help cover the costs of the project which can allow for investment in larger scale projects.
  • A private entity can own the system (and potentially receive a tax credit) while a local government can subscribe to the system (and receive net metering credits).

Cons:

  • Some customers may have a preference of renewable power source, e.g., they may desire to invest in a solar project instead of a landfill gas (LFG) energy project which could limit revenues to the developer.
  • However, for communities with a local LFG energy source, this could be an attractive partnership to utilize a local, familiar resource.

Economic Considerations:

  • Savings to the customer will vary depending on the LFG energy subscription fee relative to the utility wholesale billing rate as well as the customer’s energy consumption amount.
  • Some states allowing for virtual net metering may also require setting the credit at a rate higher than the wholesale rate.

More Information:

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Last updated on July 1, 2024