On a dry, rocky patch of his family’s farm in Door County, Wisconsin, Dave Klevesahl grows wildflowers. But he has a vision for how to squeeze more value out of the plot: lease it to a company that wants to build a community solar array.
Unfortunately for Klevesahl, that is unlikely to happen under current state law. In Wisconsin, only utilities are allowed to develop such shared solar installations, which let households and businesses that can’t put panels on their own property access renewable energy via subscriptions.
Farmers, solar advocates, and legislators from both parties are trying to remove these restrictions through Senate Bill 559, which would allow the limited development of community solar by entities other than utilities.
Wisconsin lawmakers considered similar proposals in the 2021–2022 and 2023–2024 legislative sessions, with support from trade groups representing real estate agents, farmers, grocers, and retailers. But those bipartisan efforts failed in the face of opposition from the state’s powerful utilities and labor unions.
Community solar supporters are hoping for a different outcome this legislative session, which ends in March. But while the new bill, introduced Oct. 24, includes changes meant to placate utilities, the companies still firmly oppose it.
“I don’t really understand why anybody wouldn’t want community solar,” said Klevesahl, whose wife’s family has been farming their land for generations. In addition to leasing his land for an installation, he would like to subscribe to community solar, which typically saves participants money on their energy bills.
Some Wisconsin utilities do offer their own community solar programs. But they are too small to meet the demand for community solar, advocates say.
Utilities push back on shared solar
Around 20 states and Washington, D.C., have community solar programs that allow non-utility ownership of arrays. The majority of those states, including Wisconsin’s neighbor Illinois, have deregulated energy markets, in which the utilities that distribute electricity do not generate it.
In states with “vertically integrated” energy markets, like Wisconsin, utilities serve as regulated monopolies, both generating and distributing power. That means legislation is necessary to specify that other companies are also allowed to generate and sell power from community solar. Some vertically integrated states, including Minnesota, have passed such laws.
The Wisconsin utilities We Energies and Madison Gas and Electric, according to their spokespeople, are concerned that customers who don’t subscribe to community solar will end up subsidizing costs for those who do. The utilities argue that because community solar subscribers have lower energy bills, they contribute less money for grid maintenance and construction, meaning that other customers must pay more to make up the difference. Clean-energy advocates, for their part, say this “cost shift” argument ignores research showing that the systemwide benefits of distributed energy like community solar can outweigh the expense.
The Wisconsin bill would also require utilities to buy power from community solar arrays that don’t have enough subscribers.
“This bill is being marketed as a ‘fair’ solution to advance renewables. It’s the opposite,” said We Energies spokesperson Brendan Conway. “It would force our customers to pay higher electricity costs by having them subsidize developers who want profit from a no-risk solar project. Under this bill, the developers avoid any risk. The costs of their projects will shift to and be paid for by all of our ‘non-subscribing’ customers.”
The power generated by community solar ultimately goes onto the utility’s grid, reducing the amount of electricity the utility needs to provide. But Conway said it’s not the most efficient way to meet overall demand.
“These projects would not be something we would plan for or need, so our customers would be paying for unneeded energy that benefits a very few,” he said. “Also, these credits are guaranteed by our other customers even if solar costs drop or grid needs change.”
