1. Opportunities for Community Solar in New Hampshire:
April 27, 2017
Opportunities for Community Solar in New Hampshire:
Legal Agreements and Framework for Community Solar
Nancy Malmquist

2. What is community solar?
In a broad sense, community solar involves individuals who form a group to support development of a solar facility to provide power and obtain financial, environmental and other benefits for group members and/or community institution.
Community solar may take different forms depending on the needs and goals of the members.
The group can either own the facility itself or partner with a solar developer (or other third party) to finance, install, and operate the system.

3. Opportunities created through net metering
While not the only way to engage in Community Solar, community solar is in large part possible through New Hampshire’s net-metering program.

4. Changes coming to the New Hampshire net metering program
At present, New Hampshire’s net metering program is capped at 100 MW. Each utility is obligated to accept net metering up until its portion of the cap is met.
An Interim Alternative Net Metering Tariff is currently in effect until the NH PUC adopts the new tariff.

5. Legal agreements and frameworks for community solar
Legal agreements and framework for Community Solar will vary depending on the Goals, level of investment, and involvement desired by the Group Members.
There is not one way to do this…

6. Power Purchase Agreements
In the event the group elects to partner with a solar company that will finance, construct, and operate the project, the parties would enter into a power purchase agreement or PPA.
Not all PPAs involve net metering.
Under the agreement, customers can benefit from solar arrays not on their property, and receive favorable long term power rates (after receiving negotiated solar rebates and credits based on their usage).

7. Legal entities
There are several types of business entities available, and each has its own set of pros and cons.
Limited liability company
Cooperative
Limited Partnerships
Among other considerations, the right legal entity will turn on whether the group members own the solar facility or if a solar entity owns and finances the project.
It will also depend on the desired level of involvement in management and operation of the project.
In all cases, check your plans with your tax and legal advisors to confirm the structure meets group goals.