IN WEST VIRGINIA: Spencer Presbyterian Church in Roane County added an 89-panel, 28.48-kW solar array in 2018. The church, built in 1975, houses a preschool, after-school program, and worship space. The system will offset 100% of the church’s annual electricity consumption. Spencer Presbyterian used loan and grant financing, as well as church funds. The investment will pay for itself within a decade. PPAs remain the preferred financing mechanism for most schools, churches, governments, and businesses to access affordable on-site renewable energy.
UPDATE: In 2021, we need your voice to help drown out the lobbyists and make power purchase agreements (PPAs) available to all West Virginians. Senate Bill 30, introduced with bipartisan support and assigned to the Economic Development Committee early in this session.
Legislation to allow PPAs was introduced with bipartisan support in 2019 and 2020. Opposition from FirstEnergy and AEP lobbyists stalled the bills in committee.
Both utility companies plan to invest in new solar projects, but they want to maintain control over the benefits and profits of renewable energy development in West Virginia.
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Most of West Virginia’s neighbors have authorized third-party power purchase agreements (PPAs). To enable this popular method of distributed energy financing in West Virginia, bills were introduced in both the House and Senate in 2019. Despite bipartisan support, these bills did not make it onto a committee agenda. This legislation is expected to be reintroduced during the 2020 session.
What is a Power Purchase Agreement?
A PPA is a long-term contract between a property owner and an energy developer. The property owner agrees to host an energy generation facility, such as a solar array or landfill biodigester. The developer installs, owns, and maintains the facility. The electricity generated by the facility is sold to the property owner using a long-term, fixed-rate contract.
Why are PPAs popular?
Electricity purchased from the grid has been increasing in cost. With a PPA, customers can lock in electricity rates for decades. The customer saves money monthly. Those savings increase as grid-based electricity prices rise.
Lessons learned in other states
State legislatures and utility commissions have taken action to authorize PPAs. Even in states where the rollout of this financing mechanism has been limited, great economic returns have resulted. Virginia’s story, for example, should serve as encouragement for other states considering allowing PPAs. Even under the limitations of Virginia’s pilot program, 50 MW of solar is being developed. This is five times more than the total solar capacity currently installed in all of West Virginia.
New energy development brings positive impacts to a state’s economy. According to a new report from West Virginians for Energy Freedom, Solar United Neighbors, and Downstream Strategies, if West Virginia enacts PPA legislation that results in outcomes of similar magnitude to the Virginia program, the state could reasonably expect to install 13 MW of distributed solar in the next few years.
If half of this capacity is installed on commercial buildings and half on residential buildings, nearly 400 solar project development and installation jobs could be supported. This is more than the total number of solar jobs in West Virginia today.
Central Appalachian Network and Coalfield Development Corporation provided financial support for the research. Have a question? Email Info@EnergyFreedomWV.org.