As solar power emerges as the fastest-growing energy source in Louisiana, it presents both opportunities and challenges for local communities. Because Louisiana has a variety of rural, suburban, and urban areas, it’s critical that local governments tailor their regulations and policies to meet the specific needs, goals, and preferences of their communities. Sustainable development does not happen accidentally – it requires thoughtful planning in coordination with industry experts, local leaders, residents, and other stakeholders.
For most residents, the most familiar form of capturing solar energy is rooftop solar, which is an individual solar system installed directly onto your roof that provides power directly to your home. However, there are instances where homeowners, renters, or businesses cannot install solar directly at their property or they are seeking avenues to use solar without purchasing their own rooftop system. In these cases, there lies potential to still utilize solar energy at various scales dependent upon the needs of the resident, community, or even industry. To better understand the potential of solar energy to help Louisiana achieve a sustainable future, it’s important to know that there are three different scales of solar energy production: utility scale, community solar, and microgrids.
Microgrids
The smallest scale, microgrids, also known as distributed solar systems, are decentralized energy networks that operate to serve individual homes, businesses, or local communities. As distributed electrical systems, microgrids can disconnect from the larger grid and operate autonomously to provide power in cases of outage or extreme weather events, such as hurricanes. A large microgrid can even be used to “blackstart” (restoring electric power for operation without relying on external transmission, like jumpstarting a car battery) a section of the larger power grid if the grid is forced to shut down in an adverse weather event. Excess electricity produced by microgrids during peak solar hours can be fed back into the main grid, which ensures that no energy that is produced is wasted. This ability to switch between the island and connected modes delivers on both resiliency and reliability.
From an economic development perspective, a microgrid offers a continuous, secure energy supply through periods of outage or congestion while increasing energy efficiency. This leads to lower energy costs. Site owners can leverage a microgrid’s energy resources and participate in the grid service market to pass along energy cost savings to tenants. Additionally, microgrid production and installation can create local jobs, which boosts productivity in local businesses and industries. In 2022, Entergy announced its plan to expand a program that would use microgrids to improve recovery from major storms in Louisiana. This is one example of how embracing microgrids can help Louisiana achieve energy independence, reduce carbon emissions, and foster local economic development.
Community Solar
At the midrange is community solar. Community solar facilities are usually less than five megawatts (MW). Community solar is predominantly generated by solar panels at an off-site array that has capacity to serve multiple customers, including individuals, businesses, nonprofits, and other groups. Community solar can be either utility-based or community-based. Customers subscribe to the array. The energy generated by the array is sent directly to the grid, and the utility company or community-based organization distributes the electricity to its customers and gives the subscriber a credit for their share of the energy on their electric bill. Subscribers in some markets receive a monthly savings of 5%–15% on their electricity bill. Community solar is an option for people who are unable to install solar panels on their roofs because they are renters or do not have the resources to support or install solar panels, such as roof sizing, shading, or financial reasons. The Department of Energy has a target to power five million households with community solar by 2025, which would generate $1 billion in electricity bill savings.
Other benefits of community solar include resilience during blackouts or adverse weather events, job creation within a community, economic growth, and support for local businesses. Opportunities for job growth and economic returns to communities are substantially higher for locally-owned energy projects. Community solar project development creates local jobs for planning, installation, and maintenance. Estimates show that on a national scale, growing local solar would result in the potential creation of 1.4 million jobs by 2050. This kind of energy development will stimulate local economies. According to the Solar Energy Industries Association, there are 41 states, plus D.C., with at least one community solar project in operation, with 5.6 gigawatts installed cumulatively through 2022. Estimates predict that within the next five years, the U.S. community solar market will grow with an additional 6 gigawatts of capacity.
Utility-Scale
Utility-scale solar projects are the largest installations, designed to generate significant amounts of solar energy for a broader region. These projects typically involve vast solar farms, often located on underutilized land. A notable example is the “West Baton Rouge Solar Facility,” which was developed by DEPCOM in 2020. This 74.5 megawatt installation produces enough electricity to power 7,991 homes in the Pelican State. Utility-scale solar grids in Louisiana play a pivotal role in meeting the state's renewable energy goals and reducing greenhouse gas emissions. As these large-scale installations can be combined with energy storage solutions like batteries, they enhance grid stability, ensuring a continuous supply of clean energy even during periods of low solar generation. The development of utility-scale solar strengthens Louisiana's energy resilience and contributes to job creation, environmental preservation, and a sustainable future for the state.
To help communities plan for developing solar energy in a way that is consistent with their needs and goals, the Center for Planning Excellence and the Louisiana Department of Natural Resources have joined forces to develop a Model Solar Toolkit. The Toolkit provides policy guidance and key information to help communities make informed decisions about developing residential, community, and utility-scale solar installations. The Toolkit was developed with the input of diverse representatives from various sectors, including local government, energy, agriculture, housing, and environmental groups, ensuring a well-rounded approach to planning for solar energy in Louisiana that will aid local jurisdictions in preserving local character while fostering growth of sustainable energy choices. The Model Solar Toolkit is set to be released in early 2024.