This page provides a detailed description of each criterion in the Standard Pathway: Market Development category. It includes recommended verification for designation review, community examples, templates, and/or resources.
Learn more about the SolSmart designation process here. To access this information in a PDF document, download the SolSmart Program Guide.
Overview: Market Development
Local governments can collaborate and partner with organizations to promote solar development within their jurisdiction. Supporting a community solar program, promoting a solarize group-buy campaign, or partnering with a local financial institution can make solar energy more affordable and accessible for homes and businesses while improving business opportunities for solar installers.
Many of the criteria in the Market Development category can be verified by providing news articles about the local government’s role in supporting solar development or by providing official documents that established policies or programs.
The Standard Pathway includes 10 criteria for Market Development, totaling 155 points.
MD-1 (20 Points)
Demonstrate activity in state regulatory and/or legislative proceedings regarding solar PV.
Local governments can provide an important voice into the development of state-level solar energy policy, strategies, and incentives. Government staff can track policy developments actively and develop appropriate strategies to interact with state regulators and legislators. Activities can include meetings with state regulators (PUC) or legislators, State Energy Office Officials, submitting written comment and feedback on state Requests for Information or Rulemakings, submitting formal comments or other participation in legal docketed proceedings, etc.
Recommended Verification: Provide a link to public comments on solar energy or related energy proceedings, the minutes and/or recordings of meetings attended by representatives of the local government, or a signed memo summarizing involvement in the proceedings.
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MD-2 (20 Points)
Support a community-wide group purchase program (e.g., Solarize). Program must have occurred within the last 2 years.
Local governments can support or host community group purchase programs for solar energy. Bulk purchasing can reduce the costs of solar installations for community members. These limited time- offers have had consistent success in providing discounts of up to 20% of installed costs for residential systems. To be eligible for MD-2, the local government must be an official partner and/or provide tangible support (staff time, resources, etc.) to the group purchase program.
Recommended Verification:
- Provide a link to a website where the Solarize campaign has been publicly announced.
- Provide details about the status of an ongoing solarize campaign or final metrics of a completed solarize campaign. Test html link
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MD-3 (10 Points)
Define and implement a pathway specifically for low-to-moderate income (LMI) residents to participate in a community-wide group purchase program through program design and/or financing support options.
It can be particularly difficult for low-to-moderate income (LMI) households to participate in solar purchasing programs. These programs may require a minimum credit score, an upfront deposit, or have contract terms that present barriers for some residents. Local governments can help to identify these barriers and create strategies to overcome them, by providing incentives for income-qualified participants.
Recommended Verification:
- Link to information on solar landing page or provide signed memo summarizing the forms of financing support or program design elements that support LMI residents in solar PV group purchase program.
Community Examples:
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MD-4 (20 Points)
Support a community solar program.
Community solar offers residents and businesses an opportunity to own or lease a portion of a solar project in exchange for economic benefits proportional to their share. These economic benefits are commonly delivered in the form of electricity bill credits. For renters, and homes or business that are not suitable sites for solar, community solar programs allow consumers to access solar without installing panels on their homes or business. Community solar can be provided by utilities, a third party, or a non-profit. To be eligible for MD-4, the local government must be an official partner and/or provide tangible support (staff time, resources, etc.) to the community solar program.
Recommended Verification:
- Provide a link to information about the community solar program, including any outreach materials and details about program design.
Community Examples:
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MD-5 (10 Points)
Define and implement a pathway specifically for low-to-moderate income (LMI) residents to participate in a community solar program through program design and/or financing support options.
Community solar provides opportunities to open access to solar to low-to-moderate income households. To fully achieve this potential, a community program should design programs and financing to support low to moderate income participation, including savings from day one. It is also important to ensure that appropriate and trusted messengers are used and that offerings are designed to be flexible without long-term commitments.
Recommended Verification:
- Provide details that explain program design elements, including outreach and financing, that support LMI resident participation in a community solar program.
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MD-6 (20 Points)
Provide residents with Community Choice Aggregation/Energy that includes solar PV as a power generation source.
In some states, local governments can increase access to solar energy for their operations and their residents through community choice aggregation. Community Choice Aggregation allows local governments to aggregate energy demand within their jurisdiction and procure power from an energy supplier while the local utility provides transmission and distribution services. Many local governments utilize community choice to procure more renewable energy, including solar, than would be available from their local electric utility. States must have enabling legislation for local governments to provide community choice aggregation.
Recommended Verification:
- Provide a link to details about a Community Choice program (with solar PV as a power generation source) that is available for residents.
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MD-7 (10 Points)
Provide a PACE financing program that includes solar PV as an eligible technology.
Property Assessed Clean Energy (PACE) financing is an on-bill financing mechanism which enables repayment of long-term, low-interest loans on property tax bills. PACE can be used to finance renewable energy and energy efficiency projects on residential and/or commercial properties, depending on the PACE financing program design. In order for residents and business to access PACE financing, it must be enabled at the state and local level.
Recommended Verification:
- Provide a link to the local ordinance creating a PACE program.
- Provide a link to the PACE program webpage.
Community Examples:
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MD-8 (20 Points)
Provide local incentives or locally-enabled finance (e.g. a revolving loan fund) for solar PV and/or solar PV + technologies (e.g., battery storage, and/or electric vehicle charging).
In addition to state and federal incentives, local governments can also encourage solar development within their jurisdictions by providing tax exemptions, rebates, or other financial incentives. Some jurisdictions have enabled community finance through revolving loan funds or credit enhancement facilities for renewable energy projects. These actions can help lower the cost of solar for residents. To be eligible for MD-8, the incentives or financing program must be currently available to residents.
Recommended Verification:
- Provide a link to an ordinance creating local incentives or financing options.
- Provide a link to an application or form that are required for a solar PV system to be eligible for incentives or financing
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MD-9 (5 Points)
Provide local incentives for solar PV to low-to-moderate income (LMI) households, disadvantaged communities, Disadvantaged Business Enterprises (DBEs), Minority and Women Owned Business Enterprises (MWBEs), and/or non-profit organizations that provide community services.
Local governments can support solar installations by LMI households, DBEs, and non-profit organizations by providing incentives such as low-interest loans, grants, on-bill financing and a variety of tax incentives and rebates. Local governments can expand solar programs to disadvantaged residents by implementing any number of these programs.
Recommended Verification:
- Provide a signed memo describing the local incentives and who is eligible to receive them.
- Provide a link to a webpage or press release with program information.
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MD-10 (20 Points)
Partner with financial institutions and/or foundations to offer loans, rebates, grants, or other incentives for solar PV projects. (Financial institutions could include entities such as a local or regional bank, CDFI, or credit union).
Loans, rebates, or grants can improve the financial prospects of a solar project, allowing more community members to install solar. Local governments can work with local financial institutions to offer and/or promote financing options for solar projects.
Recommended Verification:
- Provide link to financing options for solar energy.
- Provide a signed memo detailing how the local government partnered with the financial institution to offer a financial incentive for solar energy.
Community Examples:
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