More changes to Generation Partners program

Under new guidelines, customers planning projects between 400 kilowatts and 1 megawatt in generation capacity have until late August to apply for the incentives, which pay for electricity generated by customer-owned solar, wind and biomass power generation projects.

How TVA will handle larger projects in the future still is being determined, said TVA spokesman John Trawick.

“We're honoring everything that's effectively in the pipeline today,” he said. “Going forward we're going to be working both with our developers and distributors on how to work on those projects.”

TVA abruptly shut down Generation Partners last month after applications to the pilot program exceeded limits set by the federal utility for the test initiative.

The moratorium shocked solar installers across the state whose businesses had exploded since TVA revamped Generation Partners last year, boosting incentives for solar projects and expanding the program to include larger installations. In response, one week later TVA restored the initiative for systems under 200 kilowatts while continuing to evaluate requirements for larger systems.

“I'm in a downpour, but it's still a great solar day,” said Harvey Abouelata of Efficient Energy of Tennessee. The Knoxville company recently completed installation of the state's first megawatt-sized solar system, and at least three more large projects are in the works.

Under the new guidelines, TVA will avoid a 200-megawatt, $50 million cap under the pilot program by providing the same incentives as Generation Partners but under individual power purchase agreements that won't encroach on limits of the renewable incentive program. Application and approval procedures will be the same as Generation Partners, Trawick said.

After August 31, TVA officials will evaluate how to move forward with larger renewable projects, possibly creating a separate program for them, he said.

While welcoming TVA's inclusion of existing big projects under the current incentives, Southern Alliance for Clean Energy, which has been coordinating interaction between TVA and the solar industry, is reserving judgment on TVA's plans for larger-scale installations.

“I think if you stand back and take an objective look at this, the bad news is TVA is not committing long-term to provide the same set of incentives for all those projects that we discussed,” Southern Alliance's Steve Smith said. “What looks like is happening is the threat of rolling back was so severe that I think everybody has welcomed that we're back on track.... TVA has in essence left undecided what happens with 200 kilowatt systems and above.”