Solar advocates challenge TVA to expand Green Power program

Aug 10 - Ed Marcum The Knoxville News-Sentinel, Tenn.

Solar industry representatives are calling for TVA to up the size of its Green Power Providers program after the federal utility had contracted for all the 2.5 megawatt capacity of the program within the day it opened, Aug. 1.

Steve Johnson, vice president of TenneSEIA, said that three members of his group, which is a trade association for Tennessee solar companies, took up the capacity of the program, plus 20 percent, leaving no opportunity for the estimated 61 other solar installers in the state to take advantage of the incentives offered through the program.

"The issue is that TVA is doing just tiny amounts of solar, which in the past they have had a growing program, but they have cut it back year over year," he said. "So the program has been closed for the last three months and we've not been able to sign anyone up and do solar projects."

Green Power Providers is a program for providing renewable electricity for Green Power Switch, another TVA program in which consumers agree to buy certain amounts of this electricity. Green Power Providers is also meant to boost the renewables industry, and provides incentives such as an initial $1,000 toward installation costs and purchase of the provider's electricity at a premium price for 10 years.

However, TVA sets a capacity goal for Green Power Providers and other renewable energy programs. TVA has said it tries to balance the supply and demand between Green Power Providers and Green Power Switch and balance its mission of supporting renewable energy with keeping rates low.

In April, TVA announced it had met the yearly capacity goal of 7.5 megawatts for Green Power Providers and would buy no more electricity through that program for the rest of the year, except from systems smaller than 10 kilowatts.

TenneSIEA urged TVA to quit setting arbitrary calendar year caps on solar capacity and adopt a market-driven approach with decreased incentives based on total amount of solar systems installed. TVA responded by adding 2.5 megawatts back into Green Power Providers and agreeing to discuss more market-driven approaches, according to TenneSIEA.

"Now it is closed for the next five months," Johnson said of Green Power Providers.

This will be a severe hardship for solar companies and the homes and businesses that want to make use of solar systems, he said.

"Basically, being unable to work four out of eight months makes it very difficult to run a business," he said.

"Last year, they did 27 megawatts and this is in an industry that has been doubling every year for 15 years, which is 40 percent growth. Our recommendation is they do 40 megawatts for next year after negative growth this year," he said.

TVA spokesman Duncan Mansfield said that, just because TVA has filled its capacity in Green Power Providers does not mean TVA is turning down any further solar generation.

"It just means we don't have any more money for incentives this year. We still have plenty of capacity to buy solar power at market rates," he said.

Mansfield noted that TVA recently signed agreements with Pickwick Electric Cooperative to develop the two largest solar energy installations in the state in Selmer. The two 20-megawatt solar farm projects will sell electricity to TVA at a market rate of 8 to 9 cents per megawatt-hour instead of the 19 cents per megawatt-hour that TVA pays through Green Power Providers.

http://www.knoxnews.com/ 

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