WVPB: Solar Supporters Make Economic Case For Legalizing Third-Party Installation

The report on the economic potential of on-site power purchase agreements (PPAs) in the Mountain State is making headlines already. Brittany Patterson's news story for West Virginia Public Broadcasting aired the day after its public release.

Solar United Neighbors and Downstream Strategies make the case for legalizing on-site PPAs in “Power Purchase Agreements: A No-Nonsense Way to Energize Economic in Growth in West Virginia.” Download a copy here.

Central Appalachian Network and Coalfield Development Corporation provided financial support for the research. Have a question? Email us.

PPAs: A no-nonsense way to energize economic growth in West Virginia, impact report finds

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.

Op/Ed: WV lawmakers can make solar jobs happen

Two millennials who want to stay in West Virginia delivered a message for to West Virginia legislators in The (Huntington) Herald-Dispatch (Jan. 5, 2020):

On-site Power Purchase Agreements are "one simple policy change [that] can help revitalize our state’s struggling cities, towns, and rural communities with an influx of new jobs, local tax revenue, and private investment."

Read the full Op/Ed here.

Thanks to West Virginians For Energy Freedom coalition members Autumn Long of Solar United Neighbors of West Virginia and Joey James of Downstream Strategies for this Op/Ed.

Contact legislative leaders today and ask them to sponsor a bill enabling on-site PPAs.

Bluefield City Council passes resolution asking legislators to legalize PPAs

The Buefield City Council unanimously passed a resolution urging state lawmakers to legalize on-site Power Purchase Agreements (PPAs) in the upcoming session. 

Bluefield joins Morgantown as the second West Virginia city to pass a resolution in favor of making the third-party financing agreements available. Bluefield, one of the state’s most southern cities, is a member of West Virginians For Energy Freedom coalition. 

PPAs are a widely available method to finance distributed energy generation projects such as rooftop solar panels or landfill biogas. At least 28 states allow PPAs, including Virginia, Ohio, Pennsylvania, and Maryland.

Bluefield’s City Manager will send the resolution of support to the West Virginia Senate President, the Speaker of the House, and local legislators for the next full legislative session. In 2019, two bills that would have legalized on-site PPAs stalled in committee. 

Bluefield’s resolution cites the advantages PPAs would give the city and state by:

• Helping residents, nonprofits, and municipalities have more control over their energy bills with zero upfront costs;

• Creating much-needed local jobs; and

• Attracting employers – especially those with a renewable energy mandate – to locate and invest in West Virginia.

West Virginians For Energy Freedom is gearing up its campaign to legalize on-site PPAs for the 2020 state legislative session. 

Interested in drafting a resolution for your city/town council or county commission to consider? Email us for details. Want to join our #PPAs4WV campaign? Click here to send an email to your representatives in the WV Senate and House of Representatives.

Letter to Editor: Open power market to PPAs

Robin Blakeman penned a response to The (Huntington) Herald-Dispatch’s Sept. 22, 2019, editorial: “W.Va. budget must prepare for post-coal economy.”

Here’s an excerpt:

I agree with The Herald-Dispatch editorial board that West Virginia lawmakers and officials must prepare for the reality of a post-coal economy. We need to strengthen and diversify our state’s economy to make up for declining coal severance taxes and protect ourselves against the boom-bust price shocks of the oil and gas industry.

One solution is to incentivize renewable energy development in West Virginia.

Investing in renewable energy now will bring thousands of good new jobs to our state, boost entrepreneurship and local business development, and encourage corporate employers to locate and invest here. …

One simple step our elected officials can take to grow the state’s renewable energy sector is to legalize on-site power purchase agreements (PPAs) for renewable energy resources.

Read the full letter here. If you support PPAs, consider adding your comments to the letter.

Interested in writing an op/ed or letter to the editor? Let us know.

Op/Ed: An energy policy that can help small businesses

Legalizing solar power purchase agreements is a "smart policy" that would give West Virginia businesses and nonprofits more choices to secure the future of our state’s economy, write Marten Jenkins of Natural Capital Investment Fund and Gat Caperton of Gat Creek/Caperton Furniture Works in an op/ed published in The (Beckley) Register-Herald.

Read the full op/ed here.