As the urgency to address climate change fuels a transition to renewable energy, a feasibility study led by  the Okanagan Circular Society (OCS) is building the case for renewable energy adoption through an innovative community enterprise model.

The OCS was established in 2020 as an initiative of CoLab, a co-working community hub in Kelowna. The OCS Community Solar Initiative addresses the growing challenge of increasing energy costs in BC, particularly affecting non-profits, municipal governments, and low-income households. While solar energy promises reduced utility bills and less reliance on non-renewable energy, its upfront costs make it inaccessible to marginalized communities and community-focussed organizations.

Successful community solar projects exist in BC and around the world, but many are limited in scale due to their cooperative legal structure. The  OSC Community Solar Initiative project integrates the proven large-scale solar power development model into an OCS community ownership framework.

Support for the Community Solar Initiative was provided by the Economic Trust of the Southern Interior (ETSI-BC) through its Innovating & Advancing Key Sectors funding stream.  “Not only does this locally driven project facilitate the transition to renewable energy, but it also provides a community economic development model that can be used by other communities in the Southern Interior and beyond,” says Laurel Douglas, CEO of ETSI-BC.

Shane Lapp, Executive Director of OCS, worked on the Community Solar Initiative from the side of his desk for two years before the ETSI-BC funding enabled the research to ramp up.  With more than 20 years experience in systems engineering and multiple business startups, OCS partnered with consultant Barri Harris, to undertake the feasibility work.  “We would never have been able go as far as we did without the ETSI-BC funding,” says Lapp.

Importance of Regional Collaboration

As part of the study, diverse stakeholders came together to delve into the challenges and trade-offs that renewable energy stakeholders face today and looked at solutions specific to the Okanagan. Three promising scenarios for a potential Community Solar Initiative business model were explored: the Central Okanagan (Kelowna) Food Bank; multi-unit residential buildings in Penticton, and Penticton-distributed solar farms.

The research showed that the Penticton scenarios offered the great potential as a community solar model because they are within a municipality-owned utility. This provides more flexibility than larger utilities such as BC Hydro and Fortis.

The study also determined that while challenges exist for community solar in BC due mainly to the province’s regulatory framework, there is significant potential for community solar as electricity costs rise and regulations evolve. The Okanagan Valley has a high solar potential of 1,200 to 1,400 kWh/kWp annually which is above the national average. Data suggests that the greatest reduction in greenhouse gas emissions (GHG) exists through use of electric vehicles, as well as the transition from natural gas heating to heat pumps. Community solar can support this transition.

In terms of technology readiness, Smart metering is crucial for sophisticated billing and energy management systems, especially for Virtual Net Metering (VNM), a bill-crediting system for community solar.  When community solar projects create power that is not used on site, it’s fed back into the grid, generating net metering credits that are shared among subscribers.

An Innovation First for the Okanagan

As a robust operating model, the OCS Community Enterprise framework integrates the best aspects of cooperatives, innovative community funding models and municipal partnerships for community solar implementation.  A key outcome of the project was a grant proposal to Natural Resources Canada (NRCan) that was submitted by the OCS in partnership with the Penticton Electrical Utility. If successful, the grant will enable regulatory advancement by piloting VNM, modernizing utility billing systems, and implementing innovative business models for community solar. “This would put Penticton and the Okanagan at the forefront of renewable energy policy development,” says Lapp.

“While regulatory change takes time, the OCS Community Solar Initiative is opening people’s minds to different ways of doing business and paving the way for a more inclusive, sustainable and prosperous future for all,” says Lapp.