Industrial/commercial rooftops, business parks and post-secondary campuses are in the government of Nova Scotia’s sights as it targets 50 megawatts (MW) of electricity generating capacity in community solar gardens by 2026. The application process is now open for prospective developer/owners who would be expected to enter a power purchase agreement with Nova Scotia Power and sell power subscriptions to consumers.

The newly launched program — which seeks solar power providers in private and not-for-profit enterprises, Mi’kmaw bands and the municipal and college/university sectors — comes after Nova Scotia Power piloted the concept earlier this decade with four projects of its own. Those facilities, located in Amherst, Antigonish, Berwick and Mahone Bay, collectively contribute nearly 9 MW of power to the provincial grid, while subscribers pay a fixed monthly charge per kilowatt-hour (kWh) for the set block of consumption they’ve chosen and also get a credit on their electricity bills equivalent to 0.02 cents/kWh on their share of the solar garden’s total output for the month.

“Not everyone has the ability to install their own solar panels. This program creates the opportunity to buy solar energy from a community provider instead,” says Tory Rushton, Nova Scotia’s Minister of Natural Resources and Renewables.

To qualify, solar gardens must be located in Nova Scotia, have a generating capacity of 500 kilowatts (kW) to 10 MW and meet Nova Scotia Power’s requirements for interconnection with the grid. Power providers can subscribe to their own projects, but they must have at least one other subscriber. Subscribers must be in place for at least 85 per cent of the generating capacity during the term of the power purchase agreement, and at least 25 per cent of generating capacity must be allocated to residential use. As well, subscribers must be customers in “good standing” with Nova Scotia Power and not concurrently participating in other solar programs, such as net metering.

Beyond the three-year horizon to 2026, the Nova Scotia government envisions up to 100 MW of generating capacity under the solar garden program, with “not-for-profits, co-operatives, and/or legal entities representing underserved or marginalized communities” owning and operating 20 per cent of that in facilities with less than 5 MW of output. For the coming fiscal year, the recently released 2024 provincial budget promises $5.2 million to support the program.

Private sector proponents will only be able to tap into that through the Low Carbon Communities Fund, which provides grants to cover up to 75 per cent of eligible costs for pre-construction studies, design work and public engagement to a maximum of $75,000. However, not-for-profit, First Nations, municipal and colleges/universities are additionally eligible for up $1 million through Nova Scotia’s Sustainable Communities Challenge Fund. Proponents would also be allowed to combine provincial funding with grants and loans from other levels of government.

Solar generation applicants are instructed to propose a rate of at least 7 cents/kWh, but this will be treated as more of an advisory than a firm bid since Nova Scotia’s Minister of Natural Resources and Renewables will establish the rate for the power purchase agreement, which is to be locked in for 25 years. Nova Scotia Power will retain any resulting renewable energy certificates (RECs), but non-residential subscribers will be able to have RECs registered and retired if they need to verify their renewable energy usage.

“Your project may bring in an annual profit, which you are free to use in any way you choose,” the program guide states. “Some owners may choose to reinvest into additional renewable energy for the community. You could also decide to give profits back to low-income subscribers to subsidize their energy costs.”

Applicants must also submit documentation of environmental compliance and details of how they plan to deliver benefits to the communities where they are located and/or to “prioritized subscribers” related to a not-for-profit’s services or co-operative developer’s membership. As well, they must show that they have conferred with the community and gained support for the project.