Issue Briefs - 2012 Overview
Policy Briefs are also available in PDF format below.
Expanding Market Access
1A Third Party Power Purchase Agreements (PPA's)
1B Voluntary Renewable Energy Credits Markets
Economics of Renewable Energy
2A The Renewable Energy Incentives Puzzle
Regulatory Environment of Renewable Energy
3A Wind Siting
Towards Community Energy
4B RPS standards for compliance RECs
Expanding Market Access:
Authorizing Renewable Energy Sales from Third Parties to Host Customers
BACKGROUND: There are many households and businesses around the state
that desire to host a renewable energy system, but can’t afford the up-front
costs associated with these installations. More than two dozen states
expressly allow such customers to contract with third parties to install a
renewable energy system and sell the output from that equipment, be it
electricity or heat, to the system hosts. In those states, that allow such
arrangements, a system host simply purchases the electricity or heat from
the installation, often at a lower cost than what would be provided by the
utility.
PROBLEM: Wisconsin law does not address third-party sales
of energy to host customers. The lack of a specific policy creates an
ambiguous situation that could expose a third-party provider to being
regulated as a public utility. Because of this ambiguity, only a handful of
third party-owned renewable energy installations have been installed in the
state. As a result, only those customers who have the means to own and
self-finance an installation can participate in Wisconsin’s small-scale
renewable energy market.
POLICY NEED: A law that allows a
third-party owner of a renewable energy system located on a customer’s
premises to sell the output from that system to the host customer.
This could be accomplished by exempting third-party system owners from the
definition of a public utility, provided that the sale of energy is limited
strictly to the host customer.
BENEFICIARIES: Residential energy
customers, commercial and industrial energy customers, nonprofit energy
users, municipalities, farmers, local installers and contractors
specializing in solar electric, solar hot water, small wind and biogas
systems.
OUTLOOK FOR 2012: This initiative could find traction in
the current Legislature. It has the virtue of expanding the renewable energy
marketplace without creating new taxpayer or ratepayer incentives. Moreover,
this is a policy that can be framed in the language of customer choice and
empowerment, which could be appealing to the majority party in the current
Legislature.
NEEDED ACTIONS:
- Expressions of support from Republican-leaning constituencies
- Legislative visits by installers, prospective owners and system hosts
- Research/case studies documenting the effect of third-party ownership of renewable energy systems on installation activity
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