New York’s Long Island Power Authority (LIPA) has announced a second iteration of its Clean Solar Initiative Feed-In Tariff program (FIT II) which will bring an additional 100 MW of solar energy online. Pending completion of a public review and comment period, LIPA estimates that the application submittal period for the program will commence at the end of September 2013 and will be open for approximately four months. All solar projects greater than 100 kW and less than 2 MW will be eligible.
This second iteration of the FIT program differs from LIPA’s first solar FIT program in a number of ways. First, rather than considering applications on a first-come, first-served basis, all applications submitted within the application period will be evaluated; those that pass a preliminary screening process of technical and administrative review will be eligible for further consideration. In addition to including basic project information in an application, all applicants will submit a fixed-price bid ($/kWh) for the expected term of 20 years of energy delivered from the proposed system. Those applications that pass the initial screening will then be ranked in order of this bid price. These bids will be accepted using a clearing price auction mechanism, also known as a uniform price auction, which guarantees all accepted systems the same energy price based on the highest accepted bid.
Sol Systems will continue to track the progress of this program. Updates will be provided through our blog around the time of expected program approval in September 2013. Developers or investors interested in commercial scale solar project finance in New York and Long Island should contact our project finance team at email@example.com.
About Sol Systems
Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.
For more information, please visit www.solsystemscompany.com.