Solar PV Project Financing: Regulatory and Legislative Challenges for Third-Party PPA System Owners

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Residential and commercial end users of electricity who want to generate electricity using on-site solar photovoltaic (PV) systems face challenging initial and O&M costs. The third-party ownership power purchase agreement (PPA) finance model addresses these and other challenges. It allows developers to build and own PV systems on customers? properties and sell power back to customers. However, third-party electricity sales commonly face five regulatory challenges. The first three challenges involve legislative or regulatory definitions of electric utilities, power generation equipment, and providers of electric services. These definitions may compel third-party owners of solar PV systems to comply with regulations that ... continued below

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55 pp.

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Kollins, K.; Speer, B. & Cory, K. November 1, 2009.

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This report is part of the collection entitled: Office of Scientific & Technical Information Technical Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 27 times , with 6 in the last month . More information about this report can be viewed below.

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Description

Residential and commercial end users of electricity who want to generate electricity using on-site solar photovoltaic (PV) systems face challenging initial and O&M costs. The third-party ownership power purchase agreement (PPA) finance model addresses these and other challenges. It allows developers to build and own PV systems on customers? properties and sell power back to customers. However, third-party electricity sales commonly face five regulatory challenges. The first three challenges involve legislative or regulatory definitions of electric utilities, power generation equipment, and providers of electric services. These definitions may compel third-party owners of solar PV systems to comply with regulations that may be cost prohibitive. Third-party owners face an additional challenge if they may not net meter, a practice that provides significant financial incentive to owning solar PV systems. Finally, municipalities and cooperatives worry about the regulatory implications of allowing an entity to sell electricity within their service territories. This paper summarizes these challenges, when they occur, and how they have been addressed in five states. This paper also presents alternative to the third-party ownership PPA finance model, including solar leases, contractual intermediaries, standardized contract language, federal investment tax credits, clean renewable energy bonds, and waived monopoly powers.

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55 pp.

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  • Related Information: Supercedes November 2009 version.

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  • Report No.: NREL/TP-6A2-46723
  • Grant Number: AC36-08GO28308
  • DOI: 10.2172/969152 | External Link
  • Office of Scientific & Technical Information Report Number: 969152
  • Archival Resource Key: ark:/67531/metadc932209

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Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

Office of Scientific and Technical Information (OSTI) is the Department of Energy (DOE) office that collects, preserves, and disseminates DOE-sponsored research and development (R&D) results that are the outcomes of R&D projects or other funded activities at DOE labs and facilities nationwide and grantees at universities and other institutions.

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  • November 1, 2009

Added to The UNT Digital Library

  • Nov. 13, 2016, 7:26 p.m.

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  • Dec. 7, 2016, 9:28 p.m.

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Kollins, K.; Speer, B. & Cory, K. Solar PV Project Financing: Regulatory and Legislative Challenges for Third-Party PPA System Owners, report, November 1, 2009; Golden, Colorado. (digital.library.unt.edu/ark:/67531/metadc932209/: accessed April 23, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.