TVA’s tandem solar programs aren’t balancing out as expected

TVA’s tandem solar programs aren’t balancing out as expectedThe Tennessee Valley Authority’s (TVA’s) bid to increase the amount of solar in the seven southeastern states it operates in has been successful, but the means of paying for the expansion of solar still needs some work. As such, the company, a federal corporation, is working to revise the programs to even out the balance between the two.

“From a monetary perspective, there’s about $8 million of premiums paid to Generation Partners and about $3 million paid by the Green Power Switch participants,” said TVA spokesperson Mike Bradley. “It’s about a $4 to $5 million imbalance.”

Some of the member-owned cooperatives that distribute TVA power were ranked among the Solar Electric Power Association’s national top 10 for solar megawatts added last year by co-ops, according to TVA.

"Generation Partners is now producing 17 megawatts of renewable power with more than 50 additional megawatts under contract," John Trawick, TVA’s senior vice president of Commercial Operations and Pricing said in press release.

The Generation Partners program offers incentives for projects up to 20 megawatts and was spurred by $50 million in TVA funding.

The program was designed to work in tandem with the Green Power Switch program, a voluntary program through which consumers can purchase blocks of renewably generated electricity for a premium. For instance, residents pay $4 for every 150 kilowatt-hour block of renewable energy. But Green Power Switch is not meeting the demand of the new projects under Generation Partners.

Under the Generation Partners program, TVA defrays upfront costs for systems up to 200 kilowatts with a $1,000 payment, purchases all the power generated by the system and pays a 12 cent premium for solar, less for wind and hydro. Projects between 201 kilowatts and 20 megawatts in size can qualify for the program under TVA’s Renewable Standard Offer.

“It’s the demand side of that balance,” Bradley said. “It’s not keeping up with the production side.”

Participation in the Green Power Switch program has dropped by about 1,000 participants to 11,000, he said.

“Green Generation Partners have surged, and there needs to be a better balance. That’s the reason TVA is reevaluating the programs and considering the options for the best path forward,” he said.

TVA will continue to offer the Generation Partnership program while reviewing it, according to Bradley.

Pictured: A Generation Partners solar installation at Dollywood in Tennessee.