On March 30, 2010, Indiana Power and Light (IPL) launched a three-year feed-in tariff (FIT) program known as Rate Renewable Energy Production (rate REP). Now, more than two years into the program, the incentive seems to have performed better on paper than it has in reality. It offers $0.24/kWh for PV systems between 20 and 100 kW and $0.20/kWh for 100 kW to 10 MW systems, with similar benefits for wind and other renewables. The program cap is significant, totaling about 1% of IPL’s electricity sales, or upwards of 100 MW –- but as of the writing of this article, just 2.2 MW has been contracted with only 11 MW more expected to follow shortly.
The rate offered by IPL is certainly competitive with other FIT offers around the country, but interest in the program has been significantly lower than expected. In June, the deadline for petitioning to extend the program past its March 30, 2013 expiration date passed without any action on the part of the utility. A lack of developer activity and high costs associated with the program are both cited as reasons for allowing the program to lapse. Because the program’s end date is approaching, IPL has set a deadline of August 24th for interconnection applications for larger projects (those that are over 2 MW or greater than 15% of peak load on the distribution circuit). A similar interconnection application deadline for smaller projects will likely occur on October 1st of this year.
For solar developers able to meet the interconnection application deadline, this program presents an interesting opportunity. Sol Systems would be happy to discuss further with developers and share insight we have into the program. We can also assist with securing financing for an IPL project if necessary. Many of our SolMarket investors are interested in exploring Indiana projects if there is a FIT contract in place and EPC prices are competitive. Please visit www.SolMarket.com or talk to one of our team members to learn more about how our services can benefit your business. Our contact email is firstname.lastname@example.org and our phone number is 888-SOL-1115.
About Sol Systems
Sol Systems is a solar finance firm and a leader in financial innovation in the renewable energy industry. Since its inception in 2008, Sol Systems has partnered with 350 installers and developers to bring over 3,000 solar projects from conception to completion by offering innovative financing solutions for residential, commercial, and utility-scale projects.
Sol Systems’ financing programs catalyze investments for a broad set of solar projects by simplifying their origination, diligence, and financing processes. Developers seeking financing for projects can access over $2.5 billion in capital through the Sol Systems investor network.
In addition to providing financing, Sol Systems also offers project due diligence, deal structuring, and asset management services – all designed to reduce overhead and transaction costs and quicken project development timelines.