City of New Orleans - Community Solar Rules

January 05, 2024

Summary

The City of New Orleans established Community Solar Rules through the City Council's Resolution R-19-11, which established policies and procedures for community solar generating facilities in the Orleans Parish. Entergy New Orleans is required to administer the council's rules, as well as investigate, and impose any penalties for violations of the rules. The rules were amended through Resolution R-22-76 to change the income threshold of a Low-income subscriber to 60% of Area Median Income, and again through Resolution R-23-130 to increase the generating capacity of a community solar facility from 2 MW to 5 MW. Most recently the rules were changed by R-23-507, raising the PPA term limit to 20 years; allowing customers to transfer REC ownership to the subscriber organization; and changing the per kWh credit rate to a full retail rate (low-income subscribers have a full retail rate plus 2 cents/kWh).

System Capacity Limits

The generating capacity of a community solar facility must not exceed 5 MW. A facility with a capacity of 1 MW or greater may not be located on the same/adjacent property as an existing or proposed 1 MW or greater facility owned by the same subscriber organization. One or more organizations are allowed to construct multiple facilities on a single parcel of property, as long as the aggregate capacity does not exceed 5 MW.

Program Capacity Limits

The community solar program's capacity limit is less than or equal to 5% of a utility's annual peak in MW for the first three years of the program. After three years, the council will reconsider the limit.

Low-Income Provisions

Low-income subscribers are reserved a minimum carve-out of 30% for a facility with a max capacity of 5 MW. The carve-out limit is 50%.

Credit Rate

Credits are applied to each subscriber's monthly bill at the full retail rate. If a credit exceeds the subscriber's monthly bill, the excess credit will roll over monthly and indefinitely until the service is terminated. The same goes for any low-income subscribers, who receive the full retail rate plus 2 cents/kWh adder. As for renewable energy credits (RECs), the individual subscriber maintains ownership and is allowed to transfer ownership to the subscriber organization.

Program Overview

Implementing Sector: Local
Category: Regulatory Policy
State: Louisiana
Incentive Type: Community Solar Rules
Web Site: https://www.entergy-neworleans.com/community-solar/
Administrator: City of New Orleans
Start Date:
Eligible Renewable/Other Technologies:
Applicable Utilities: All utilities
System Capacity Limit: 5 MW
Program Capacity Limit: Less than or equal to 5% of a utility's annual peak annual peak in MW (for first 3 yrs. of program)
Participant Credit Rate: Calculated by multiplying monthly kWh output and the full retail rate
Low-Moderate Income Provisions: 30-50% carve-out for facilities up to 5 MW

Authorities

Name: Council Resolution R-19-111
Name: Council Resolution R-22-76
Name: Council Resolution R-23-130
Name: Council Resolution R-23-507

Contact

Name: City Council Utilities Regulatory Office
Address: 1300 Perdido St.
New Orleans LA 70112
Phone: (504) 658-1110

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.