How Community Solar Projects Are Cutting Electricity Bills Across the Globe

How Community Solar Projects Are Cutting Electricity Bills Across the Globe

Exploring how community solar projects in Chicago, Berlin, and Bangladesh are reducing electricity costs and empowering residents, while highlighting the need for systemic changes to make solar accessible to all.

Why We Need Solar Power. | Transcript:

As the cicadas chirped in the wet July air of Chicago, Clarence looked down at a number that couldn't possibly be right. He had just come home after a long day of work, driving the Ashland bus for the CTA, and lo and behold, his monthly bills were piled up under his doorway. One by one, Clarence sorted through the envelopes, but when it came time to slice open the one from ComEd, his regional energy utility, he stopped in shock. His electricity bill was the highest he had ever seen. Summers were usually expensive, but this was 45% higher than last year! Unfortunately, Clarence is

not alone. Across Chicago and the United States, electricity bills have skyrocketed. Electrical utilities are jacking up prices, outpacing even inflation. What is happening? Why is electricity getting so expensive? But perhaps more importantly, how do we escape these growing costs? How do we build a world that doesn't cost us an arm and a leg just to turn on a lightbulb and perhaps even minimizes our emissions and wrestles back control over our energy in the process? To search out the answers to those questions, we'll travel from the plains of Northern Illinois,

to the balconies of Berlin, all the way to the rooftops of Bangladesh. Today, we'll explore how communities across the world are embracing solar's revolutionary potential. A potential that can free us from the grasp of Big Oil and rising energy costs. Why are electricity prices going up? On the south side of Chicago, in the neighborhood of South Shore, a quantum computing company, the Department of Defense, and the Illinois government are scheming. They're plotting to change the world. There in the southern end of the Steelworker park, PsiQuantum, with backing from the U.S. military and its contractors, is pushing through a plan to build the biggest quantum

computer in the world over the next two years, against the express wishes of the South Shore community. A computer that, among other things like being able to break any encryption, would require massive amounts of energy to keep cool. As the CEO of the regional electricity utility, ComED, explained at a Quantum forum in Chicago recently, "Quantum computers need to be kept at temperatures near absolute zero to ensure the stability of cubits. That requires a lot of electricity." And the project will undoubtedly go through ComEd to acquire that energy. In short, this massive sci-fi computer means big business for Chicago's energy

provider. It entails that ComEd must build out infrastructure upgrades, new transmission lines, and more power generation to meet the demand of the energy-thirsty tech project. And all this new infrastructure means that ComEd can get permission to increase its prices for everyday customers. But this quantum computer is just the tip of the iceberg. As data centers needed to maintain cloud services and AI proliferate at an increasingly faster pace, energy demand has escalated in a time when we need to be doing the opposite. As I covered more thoroughly in this video about AI,

the energy needed to power these data centers is seemingly insatiable. Indeed, the power demand from data centers has grown 12% in the last five years and now accounts for 1.5% of global energy demand. But that number is projected to double, or perhaps even triple, over the next ten years. In the imperial core specifically, data centers "are projected to drive more than 20% of the growth in electricity demand between now and 2030." Here is where we can begin to glimpse the larger picture of why energy prices are spiking. As more industrial demand from AI and computing services

proliferates, utility companies are scrambling to supply energy to these new energy sucking beasts. But of course, it's not just data centers that are spiking energy demand. As the world attempts to electrify everything from cars to ovens (on top of trying to cool down with air conditioning in an increasingly hotter world), the strain on the grid will continue to get worse, especially in the U.S. The question then is not whether or not we need these infrastructure upgrades; it's more of a question of how much and when. We simply don't have enough grid connections and transmission

lines to handle the coming electrification of everything, and the rise of AI and data centers makes the job of overhauling our grid that much harder. In short, our electrical infrastructure, especially in the United States, is woefully unprepared for the influx of energy demand from AI and data centers. As Umair Irfan writes for Vox, "for the first time in a decade, the US is experiencing a sustained increase in electricity use" and to keep pace with that increase, energy utilities are pouring much of their money, more than half, into transmission and distribution

construction. As the founder and executive director of PowerLines, Charles Hua, explains via Vox, "If you actually look at the cost breakdowns of what's significantly increasing, it's really the grid… It is the poles and wires that make up our electric infrastructure that's increasing in cost particularly rapidly." So, the rising costs on your electricity bill are caused, in part, by AI and data centers' demand for electricity generation, which in turn has spurred an increased need to connect all of these new energy gobblers to an updated grid. Because

in places like the United States, the grid is old and ailing. It needs to be updated if we are to turn our fossil-fueled economy into one built on renewable electricity. Unfortunately, the overwhelming burden of infrastructure upgrades is currently being placed on everyday people like Clarence. Instead of putting the burden of cost on the rich who've made billions on the electric grid, the Elon Musks and Jeff Bezos, we have a broken system where utilities, with permission from the public utilities boards that are supposedly working in the people's interests,

are instead passing costs onto the working class. But transforming this system is a gargantuan task. It means overhauling how utilities function and how oversight committees work; it means building publicly owned power like I covered in this video. So while we work toward that goal of building a publicly owned power grid, what can we do in the meantime to alleviate the burden on everyday people? For that we must turn to the radical potential of solar. The radical potential of solar 30 miles south of the Chicago Loop lies a plot of land outfitted with 5,200 solar panels. But this isn't any old solar farm.

While it does feed into the grid, its financing and operation are a little different than the much bigger solar arrays some 200 miles southwest that have the capacity to power over 100,000 Chicago homes. Because this solar farm is run by Reactivate, a community solar company working to provide cheaper energy bills to working-class people. Community solar represents one of the many stepping stones that can hand some control of energy generation to the people now while working towards a more environmentally just energy system in the future. Because as we'll soon see, solar energy has radical potential. It's remarkably

adaptable, increasingly cheap, decentralized, and when used on the micro level, transfers control of energy back into the hands of everyday people. It puts electricity, the stuff of modern life, back into the hands of the working class. Back at the Reactivate community solar farm, the ceo of the company, Utopia Hill, describes how the project works: ["Community solar are smaller projects that are connected to the grid that allow households to subscribe… By subscribing, customers offset their own electricity costs]. In other words, community solar projects work through a subscription system.

People in the community who can't place solar on their homes, perhaps because they are renting, can buy into a community solar plot, often with no upfront cost, and then get renewable credits for all the energy that the solar project sends into the grid. And those credits can make a community solar customer's electricity bill as much as 20% cheaper. It's important to note that community solar projects do not directly send their solar power to their subscribers, but instead send it to nearby homes through the grid. Subscribers are merely backers of the local

solar project who get money for however much the farm generates. You might think of it like a slight twist on community supported agriculture where people subscribe to the farm, and instead of getting veggies each week in return, the farm sells the veggies to other costumers nearby, and returns some of that revenue back to the subscribers. In short, it's a way to increase small-scale solar and clean energy projects in your area, while also decreasing your energy bill. And community solar projects have boomed throughout the United States. In states like

New York, for example, community solar projects now account for more than 2 GW of operational capacity- enough to serve almost 400,000 homes. And the U.S. in general has an estimated 7.87 GW of community solar capacity across 44 states. But as much as community-owned solar has blossomed, it still must rely on the grid and the whims of utilities to function. It still doesn't assure clean, cheap, and controllable energy quite like slapping solar panels on your roof does. Unfortunately, rooftop solar is unattainable for so many. For renters or for those who live

in larger apartment complexes, the dream of clean, free electricity straight from the sun feels like a distant promise. That is, unless you live in Germany… The balconies of Berlin are a sight to behold. Instead of plants and shrubbery, there, the solar panel reigns supreme. Balcony solar enthusiasts have taken Germany by storm, and the epicenter of this new decentralized clean energy system for renters lies in the apartment complexes of Berlin. The buildings of this German metropolis are coated in a tapestry of solar panels. And these solar arrays have become a powerful force in the city's energy landscapeare

because they incredibly ease of install an use. Just sling a few panels over your balcony like you might do with a flower box, plug the panels into any wall outlet, and the panels will start feeding power into your house. That's it. Just plug it in and start powering your appliances around your house. And that ease of use has led to millions of renters and apartment dwellers taking part in the balcony solar craze throughout Germany- especially in cities like Berlin, where the city subsidizes up to €500 of the cost of the panels. However, balcony solar wasn't always that easy in Germany.

For many years, it was illegal and against the fire code to plug panels directly into the wall. It took a protracted struggle and organizing to massage electrical and fire code, alongside legal stipulations, to make balcony solar possible in Germany. As Akielly Hu explains in an article for Grist, since well before 2017, German organizers and the solar industry ".worked with other advocates to amend grid safety standards, create simple online registration for plug-in devices, and enshrine renters' right to balcony solar." But balcony solar has been a smashing success,

both in terms of clean power generation, adoption, and safety, because there has yet to be a major electrical incident from these solar installations in Germany. So, if these plug-and-play solar arrays are so popular and easy to use, why aren't they proliferating in places like the U.S. where the demand for off-grid controllable and cheap energy is gaining steam? Back in the United States, the temptation of balcony solar is running into similar problems German solar advocates had to navigate before the craze took off. Currently, solar panels that plug directly into a wall outlet are illegal and electrically infeasible

in the U.S. for a number of reasons. Chief among them is the lack of an Underwriters Laboratories, or UL, standard. Which as Akielly Hu explains, is a "company [that] certifies the safety of thousands of household electrical products," so if a balcony solar kit doesn't have UL approval, it's dead on arrival. But in order to get that approval, balcony solar kits must comply with the National Electrical Code, which lays out fire safety standards among other things, and that code is only changed every three years. According to Hu, a balcony solar advocacy group in the U.S. recently "submitted recommendations for

amending the code to allow plug-in solar - and every one of them was rejected." But not all is lost, there is progress towards removing roadblocks- assuring fire and electrical safety, but it's sadly in its early stages. Utah, for example, just recently passed legislation legalizing balcony solar- but it's on the condition that balcony solar systems are nationally certified. So, at the moment, Utahans still can't reap the benefits of balcony solar. Meanwhile, there are still obstacles like the potential for balcony solar to produce enough energy to fool the breaker in an apartment's system into not tripping if too many devices are

connected, which would be a surefire recipe for an electrical fire. Luckily, as Germany has shown, those roadblocks are surmountable- we just have to put in the work to get around them safely. Looking globally, the potential for rooftop and plug-and-play is immense. Its decentralized nature means you don't need to be connected to the grid. You don't need to be subjected to the whims of a private monopoly or a corrupt oversight committee. It brings power back into the hands of the people. And importantly, it means that in the wake of climate-fueled disasters, power will continue to flow. Decentralized solar is fueling electrification and resilience across the world. In Bangladesh, for example,

the state-backed solar homes project distributed clean electricity to millions of people throughout the country, many of them having never had grid access or electricity before. And crucially, it wasn't reliant on the whims of grids, or the terrors of blackouts. Those who have solar control their own destiny. Across the world in Puerto Rico, while the corruption of the power utility, Luma, led to months of blackouts in the wake of Hurricane Maria, communities that invested in solar arrays were able to keep the lights on. Indeed, Ajuntas, a small mountain town,

was hit hard by Maria- cut off from supplies and electricity due to torn up mountain roads and downed power lines. In the aftermath of the storm things seemed dire. But there was, quite literally, a light in the dark. Casa Pueblo, a local community organization, had installed a solar array and was able to keep electricity flowing. As a result, it became a community hub for the people of Adjuntas as they waited weeks for the grid to be repaired. And since Maria, solar power in Adjuntas has blossomed. Across the town, Casa Pueblo has helped install over 350

solar systems and has worked to integrate them into a community microgrid of sorts, fit with banks of batteries to extend electricity use into the night. As the owner of a local pizza shop, Gustavo Irizarry, put its, "we have electricity security." For Irizarry and many of the people of Adjuntas, there is no uncertainty about whether a storm will wash away their power, because they and their community control it together. Solar's potential, then, is not just the fact that it's become the cheapest source of power. Solar's potential lies in its insurgent intervention

into our current structures of power. Instead of having to bear the burden of AI and data centers, and live through the insecurity of blackouts as grids shut down under the stresses of climate chaos, solar microgrids- whether community-owned, rooftop, or balcony- provide resilience and agency in times of uncertainty. And it does so without destroying the planet in the process. A low-energy future: Back at the Quantum facility in Chicago's south shore neighborhood, the people of Chicago are up in arms- and rightfully so. The proposed project could bypass any encryption, will undoubtedly be used to surveil political enemies,

and will dramatically increase the demand on the local grid. Not to mention it will provide few jobs for the surrounding community and gobble up water to cool its processors. Of course, a quantum computer is not the same thing as a data center, but the fallout of both is similar. They both, among other consequences, ratchet up energy demand and harm local environments in a time when we need to be doing the exact opposite. We need to be degrowing energy demand so that the task of building out renewable energy production on all scales becomes a

little less gargantuan. Because right now, we'll need triple the capacity of renewables over the next six years. And we have to do that by installing wind and solar on all scales, from the mega-farm solar projects, all the way to the balcony solar panels of Berlin. And we have agency in this transition; we can and must push for distributed solar in our communities, much like advocacy groups did for balcony solar in Berlin. We must make sure it's as easy and as cheap as possible to reap the benefits of renewables, particularly solar. Its cheapness,

its resilience, and its controllability must be the future. It puts power back into our hands, no longer having to rely on a utility to assure that our lights are running and our heat is on. But of course, achieving a renewable energy transition necessitates more than just building out renewable infrastructure; it requires a simultaneous commitment to degrowth. Because despite a rapid expansion in solar and wind, fossil fuel production continues to rise. So, simply adding renewables to our energy mix is insufficient; we will have to work towards a complete ban on fossil fuels. Which means actively degrowing

carbon-intensive industries like the military and fossil fuels while simultaneously fostering the growth of renewable and less material-intensive sectors such as healthcare and education. Ultimately, distributing control of our energy sources to as many people as possible should be the goal. We must build a true energy democracy. Because energy is a fundamental human right, and its provision should not be monopolized by private companies. No one should face the prohibitive cost of essential utilities like electricity or heating. Solar energy is uniquely positioned to facilitate this, as it can be deployed at every scale,

from large solar farms to individual balconies. However, realizing solar's full potential requires significant systemic changes. This includes transforming the existing grid, updating fire codes, subsidizing or directly providing solar installations to individuals, and generally simplifying the process for people to generate their own clean energy. So we need to get out there and start doing the work. Join up with local groups like the ecosocialists in New York DSA that helped push through legislation building publicly owned renewable power,

or join thousands around the world on September 21st for Sun Day- an international day of action to celebrate the progress we've made on solar so far and build people power to push for even more. Stretching from the U.S. to Australia, hundreds of rallies, solar installations, banner drops, and more will show the world the potential of solar. And if there's no event in the area, you can host one! So if you want to help build more solar power for a brighter future, join or organize a Sun Day event in by checking out Sunday.Earth. I hope to see you there.

And if you haven't already, please consider supporting this channel on patreon. Patreon is the main way this channel stays afloat financially, so if you've been a long time viewer or just are liking my videos, please consider going to patreon.com/ourchangingclimate and pledging as little as a dollar a month to help keep this channel going.

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