Tom Cooper

Accelerating Adoption of

Community Solar

Using survey-based market forecasting to take the guesswork

out of designing and promoting community solar programs

October 2016

Community Solar Markets and Customers

Accelerating Adoption of Community Solar | October 2016 1

To be successful, a utility or developer must design and promote a program consumers find attractive

Program Design

Promotion

Market Acceptance

Accelerating Adoption of Community Solar | October 2016 2

Program Design from the Customer Perspective

•Economic

factors

•Program

features

•Incentives

• Initial investment

•What I lease or own

•% of bill covered

• Initial impact on monthly bill

• Impact on bill 5 years out

•Duration of contract

•Various incentives to sign up

Accelerating Adoption of Community Solar | October 2016 3

Community Solar Program Design Features and Levels

Program Features LevelsNone

$500

2000 (financing available)

5000 (Financing available)

$25 monthly charge

$50 monthly charge

Nothing

Solar panels

KWH increments

Fixed rate for solar portion of power

25%

50%

75%

100%

125%

8% decrease

3% decrease

No change

3% increase

8% increase

8% decrease

3% decrease

No change

3% increase

8% increase

Month to month

1 year

2 years

5 years

10 years

Receive $100 of LED lightbulbs

Name on solar panel to recognize participation

Cash rebate if coverage goal not met

Late fee forgiveness two times per year

No additional incentive

Net monthly impact on

bill 5 years out

Initial net monthly impact

on bill

Duration of contract at

initial sign-up

Incentives

Initial investment

What you lease or own

Percent of current bill

covered

375,000 optional

programs can be

designed with different

combinations of these

features.

Accelerating Adoption of Community Solar | October 2016 4

Promotional strategy has three components

Message

• Principal content of the message

Media

• How the message reaches the customer

Source

• Spokesperson delivering the message

Accelerating Adoption of Community Solar | October 2016 5

Community Solar Promotional Campaign Elements

Newspaper

Mailer

Utility bill stuffer

Social Media

E-mail

Message on the utility bill

Radio spot

TV spot

Web

Saves you $

No maintenance

Grows the solar industry

Avoids use of fossil fuels

No start-up costs or investment

Promotes renewable energy

Solar panels are not on your roof

If you move you can take with you or cancel

Every homeowner or renter eligible to participate

Hedge against rising utility costs

Growing demand for community solar

Buying or leasing too costly

Community solar is local

Get started right away, cancel at anytime

Conserve natural resources

Well-known personality

Neighbor

Local community spokesperson

State Govenor

Solar organization

Utility

Non-profit organization

Media

Message

Communications Elements

Source

Different combinations

of media, messages

and sources represent

945 optional

promotional campaigns.

Accelerating Adoption of Community Solar | October 2016 6

Accelerating Adoption of Community Solar | October 2016 7

PCG Survey Sample

State N

California 116

Colorado 106

Florida 116

Massachusetts 110

Michigan 108

Minnesota 107

Texas 113

Washington 108

Total 884

Accelerating Adoption of Community Solar | October 2016 8

Initial investment has the most influence on market acceptance of Community Solar

Accelerating Adoption of Community Solar | October 2016 9

The market is very sensitive to differences in initial investment required to participate in Community Solar

78.6

13.96

-53.38

-106.98

50.25

17.56

-150

-100

-50

0

50

100

Utility

No Initial

Investment

$25/month

$2,000

(financing)

$500

$5,000

(financing)

$50/month

Accelerating Adoption of Community Solar | October 2016 10

None of the incentives tested make much difference in influencing adoption of Community Solar

15.33

-16.99

24.84

-8.05

-15.12

-20

-15

-10

-5

0

5

10

15

20

25

30

Utility

$100 LED’s

Late fee

forgiveness

2X/year

Name on

solar panel

No

additional

Incentive

Cash rebate

if coverage

goals not

met

Accelerating Adoption of Community Solar | October 2016 11

Messaging is the most important communications component

Accelerating Adoption of Community Solar | October 2016 12

Key messages emphasize eligibility and $

0 2 4 6 8 10

Buying or leasing too costly

Grows the solar industry

Solar panels are not on your roof

Avoids use of fossil fuels

No maintenance

Growing demand for community solar

Community solar is local

Conserve natural resources

Promotes renewable energy

Hedge against rising utility costs

If you move you can take it with you

Get started right away, cancel anytime

Saves you $

No start-up costs or investment

Every homeowner or renter eligible

Communications Priorities

Extrinsic motivator

Intrinsic motivator

Accelerating Adoption of Community Solar | October 2016 13

Consumers seem to trust an institution that knows the solar business

0 2 4 6 8 10

Well-known personality

State Govenor

Neighbor

Local community spokesperson

Solar organization

Non-profit energy organization

Utility

Source Priorities

Accelerating Adoption of Community Solar | October 2016 14

Channels targeted to consumers (plus TV) seem to carry the most influence

0 2 4 6 8 10

Radio spot

Newspaper

Social Media

E-mail

Web

Utility bill stuffer

Mailer

TV spot

Message on the utility bill

Media Priorities

Accelerating Adoption of Community Solar | October 2016 15

Market simulations can expedite planning and enable utilities and developers to “get it right the first time”

Initial Investment

Contract length

What I lease or

own

Immediate savings

Savings 5 years out

Incentives

% of bill covered

Message

• Principal content of the message

Media

• How the message reaches the customer

Source

• Spokesperson delivering the message