Net 0 Energy Homes is intrigued by a new report co-authored by a University of Central Florida researcher that has found that if the state begins easing state regulations affecting solar energy production, it could result in more than $3 billion in economic benefit to the state, support 18,000 jobs and reduce numerous greenhouse gases emitted each year.
It states that anyone selling power in Florida, regardless of size, must follow the same rules as large utility companies. This has resulted in keeping smaller energy developers from entering into what is known as a power purchase agreement with individuals, businesses and nonprofits. These rules include building codes, permitting, reliability reporting, electric-rate scheduling and tariff regulations under the Florida Public Service Commission. Currently, 28 states allow solar power purchase agreements to operate, while Florida is one of seven states with legal barriers in place effectively prohibiting their use.
With a power purchase agreement, a person or organization allows an energy developer to install, own, operate and maintain an energy production system, such as a solar array, on their property. The electricity generated from the solar array is sold back to the person or organization at a price that is often lower than what they are paying their utility provider.
What is Being Said About This
“The electricity generated from the solar array is sold to the customer using a long-term contract at a price that is typically below retail electric rates,” says Kelly Stevens, an assistant professor in UCF’s School of Public Administration and report co-author. “This way, the customer receives the electricity generated from the solar array yet avoids the high up-front capital costs and difficulty of arranging financing, design, permitting, and construction of the array.”
Stevens says things to consider before entering into a solar power purchase agreement are the space available for a solar array and the electricity rate negotiated with the developer.
The Numbers are Impressive
The researchers determined that if Florida increased its non-utility solar generation by 42% through power purchase agreements, bringing its share closer to the national average of 65 percent, that this would add an additional 1,165 to 1,942 megawatts of additional solar capacity to the grid.
This would result in an annual reduction of 1.8 to 3.1 million tons of greenhouse gases emitted, which is the equivalent of removing more than 118,000 gasoline-powered cars from the road each year.
Construction of Florida-based solar arrays through power purchase agreements would result in an economic impact of $2.3 billion to $3.8 billion, and the creation of 15,000 to 25,000 jobs, according to the report.
To illustrate the implementation of solar power purchase agreements in Florida, the report also provided three case studies of potential savings if the agreements were implemented in three Central Florida locations – the City of Orlando, the Osceola School District, and the First Unitarian Church of Orlando.
For instance, the City of Orlando currently has 19 city facilities participating in a community solar program. If the city were to install 18 megawatts of solar through a power purchase agreement on 14 additional city-owned buildings, it would save more than $400,000 in electricity costs annually and reduce carbon emissions equivalent to removing more than 1,200 gasoline-powered cars off the road each year.
For the Osceola School District, there are currently solar panels installed on seven schools. If solar was installed on an additional three schools through a power purchase agreement, the district could see annual electricity savings of more than $90,000, and it would result in the equivalent of more than 150 cars taken off the road annually.
The research was funded by a $10,000 grant from Solar United Neighbors, a national nonprofit organization that promotes solar energy production.
Net 0 Energy Homes
If you are looking for a team of professionals to install solar panels into your business or home, then contact Net 0 Energy today!
As the best solar company in South Florida, Net 0 Energy Homes employs a highly experienced team of expert solar panel installers of domestic and commercial solar panel (PV) systems across South Florida, including West Palm Beach, Fort Lauderdale, Miami, Florida Keys, and the Bahamas.
We also provide and install radiant barrier attack shield, quality insulation, solar water heaters, solar pool heaters, and a myriad of other amazing products to keep your home’s heating and cooling costs as low as modern science will allow. Contact now for a consult on how solar can work for you.
Net 0 Zero Energy solar electricity systems are made of high-quality US manufactured modules of top tier quality. While our solar water heating systems are manufactured by Solar Development Incorporated, Florida’s oldest solar manufacturer located in Palm Beach County since 1974.