Welcome back for our second installment of “The Brain!"
This is BFA Energy’s bi-weekly solar blog where we discuss and dissect the current and evolving solar market at large.
Our topic this week is
UTILITY SCALE SOLAR : What is it, why it’s beneficial, and how you can take advantage of it?
What is utility scale solar?
Utility-scale solar (USS) refers to large scale electricity generation either through: A photovoltaic(PV) power station at a scale large enough to be classified as 'utility-scale'; or: Concentrated solar power(CSP). The solar power generated is sold to the utility. Since 2012 USS has led the overall solar market in installed capacity.
Some of the obvious benefits of utility scale solar energy are they improve environmental protection and create thousands of jobs nationwide. Through PURPA or the Public Utility Regulatory Policies Act of 1978, alternative energy has been diversified and competition has been created in the electric sector. The last decade PURPA has become an attractive option for solar developers due to dropping solar prices.
Why is it beneficial?
Today throughout the nation there exists a way for just about everyone to take advantage of energy deregulation and utility scale solar. Every state has their own solar protocols that create an opportunity for the investor in all of us. Finally the small child in all of us that wanted to make a difference is able to!
We are able to help the environment, cut costs on production/consumption of energy, and all while creating new streams of residual income for everyday people for future generations.
How can you take advantage of it?
Solar projects have two revenue generating attributes: power and, state renewable energy credits (SRECS). The project owner will enter into long-term contracts to sell the power over 15-25 years depending on the power purchase agreement. The project owner will also typically (but not always) enter a long-term SREC contract. This creates two reliable and ongoing revenue streams.
Below is the U.S. photovoltaic deployment forecast chart displaying solar capacity and percentage of U.S. electric generation throughout 2022.
PV Deployment Forecast (MWdc) per Year
Source: SEIA.org
Now that you have a better understanding of what Utility scale solar is and what you can do about it, you may still be wondering,
“Is this the right investment for me?”
Are you a homeowner, landowner, investor, real estate agent, venture capitalist, entrepreneur, or just an upright citizen excited about solar energy, yet don’t know where to start? Thankfully BFA Energy and our team of solar experts are here to assist you in finding the right utility scale solar investment option for you. Comment, like, or reach out to us for more information in regards to utility scale solar.
Thanks again for reading this installment of "The Brain."
See you on the next one!