On April 20, 2012, the Long Island Power Authority (LIPA) proposed its new solar PV energy feed-in tariff program. This pilot program aims to stimulate solar energy development, deployment, and generation. The Authority plans to enroll 50 MW of solar energy by 2014. Enrolled systems will enter 20 year Purchase Power Agreements (PPAs) and LIPA will purchase the electricity generated by the systems at a fixed price of $0.22 per kWh.

The feed-in tariff is available for systems with a nameplate capacity between 50 kW and 20 MW. In order to prevent smaller generators from being crowded out by larger generators, LIPA stipulated the following allotments for the smaller solar energy systems:

–       5 MW for systems between 50 kW and 150 kW;

–       10 MW for systems between 151 kW and 500 kW;

This will create adequate supply of smaller distributed generators, while also maintaining market stability for the local industry surrounding solar energy. Furthermore, it will guarantee greater diversity and higher quantities of projects entering the program. It is estimated that this program will have a monthly price impact of $0.44 on the typical residential ratepayer.

LIPA will enroll systems on a rolling basis beginning July 1st, 2012 and will accept applications through June 30th, 2014.

For more information on the application and background of the program, please view the LIPA Solar Feed-In Tariff Proposal.

About Sol Systems

Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businessessolar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilitiesmanage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit http://www.solsystemscompany.com.