By Scott Nguyen PhD, 1PlanetSol
The Energy Burden
We just survived another sizzling Texas summer. To keep cool and comfortable in the Texas heat, many of us do not think twice about cranking up the air conditioning. However, for Billy, an eight-year-old who lives on the southeast side of Austin, and his family, the decision to turn on the AC is not as simple. Air conditioning consumes tons of electricity, and electricity rates are often highest during summer months. As a result, paying the electric bill can be a monthly conundrum for Billy’s family. Do we incur a large utility bill or prioritize food, school supplies, or medical expenses?
Billy’s family is not alone — Texas has over ten million people living in poverty. These families spend up to 30 percent of their income on home energy costs compared to an average of 4 percent statewide.
Going solar could be a great solution to reduce these families’ energy burden. However, the large upfront costs of rooftop PV systems and limited financing options often make the long-term economic benefits of solar inaccessible to low-income families. For example, in Austin, solar adoption and utility rebates incentivizing adoption have disproportionately benefited the affluent (Figure 1). That leaves us with the question, “How can we provide clean, affordable energy to our neighbors that need it the most?”
Figure 1. Income Distribution of Solar Adoption in Austin. Top: Distribution of solar households compared to the distribution of all households in Austin. Bottom: Relative difference between the share of households in the solar program and the share of all households in Austin for each income level. Taken from “Which Austin Neighborhoods are Benefiting the Most from Solar.”
1PlanetSol Communities
The 1PlanetSol Community is a new approach that addresses these issues and dramatically expands access to solar and its impact in the community. Rather than the old, conventional approach where a single homeowner installs solar on his own roof to offset his electricity bill, 1PlanetSol facilitates a true community-wide approach that transforms solar into a market-based value proposition driven by consumer interest and buying power.
The core of 1PlanetSol is a member-based customer rewards program where members receive discounts on purchases, and the member businesses grow a new, committed customer base. The proceeds from the membership go to installing solar on homes built or repaired by Austin Habitat for Humanity, providing these low-income families free electricity and the opportunity to spend the savings on other family needs, like education or healthcare. Additionally, 1PlanetSol promotes investment in the local economy that can lead to economic growth and job creation within the community.
How It Works
Figure 2: The 1PlanetSol mobile app facilitates community engagement by allowing members to monitor the Community’s social and environmental impact in real-time and to identify and locate member businesses.
1. Citizens join – Citizens in the community join the 1PlanetSol Community through an annual membership. As members, they are able to participate in solar projects at a manageable cost ($49/year) and immediately benefit through discounts on purchases made at member businesses. A 1PlanetSol app keeps members engaged, allowing them to monitor their community’s social and environmental impact in real time and identify and locate member businesses (Figure 2).
2. Businesses join – Local businesses also join the 1PlanetSol Community through an annual membership. In return, they attract a new and loyal customer base to drive revenue growth while also building their environmental and social brand. Quarterly reports on customer engagement are provided to the businesses.
3. Solar is installed – The proceeds from the membership fees are then used to fund the installation of solar on low-income homes built or repaired by Austin Habitat for Humanity. The solar installations are free to the homeowners, allowing them to receive solar energy at no cost, lowering their energy burden while increasing their property value.
4. Community benefits year after year – 1PlanetSol is an annual program and will continue to help new families with solar installations in the ensuing years. As the membership grows, even more families will be able to benefit from solar every year.
Helping Texas and Beyond
The 1PlanetSol Community is launching in Austin in 2018. Our year-end goal is a 1,000-member community supporting 100 kW of solar, 100 percent of which will directly benefit 25 low-income families, collectively saving them $20,000 every year in electricity costs. We will continue to grow the membership base of the community in and outside of Austin to expand the number of families we can help and the impact we can make. Our five-year goal is to install over 1 MW of solar to power the homes of 300 low-income families, collectively saving $320,000 every year in electricity costs.
Join Our Community
1PlanetSol was formed in 2017 with a seed grant from the US Department of Energy and strong partnerships with Austin Habitat for Humanity and the Texas Energy Poverty Research Institute (TEPRI). We are looking for community partners, business sponsors, and financial support to help us in our mission to bring the benefits of solar to everyone. To find out more, go to www.1planetsol.org, or contact us at info@1planetsol.org.
Scott Nguyen is founder and Executive Director of 1PlanetSol. With over a decade of industry experience at venture-backed start-ups and major corporations, he is driven to accelerate our transformation to a cleaner, more efficient energy economy. Scott received his Ph.D. in physics from Harvard University.