SEPA report examines utility decisions to buy, vs. build solar

As utilities seek to add more renewable generation to meet renewable portfolio standards (RPS), they must choose between two procurement options—ownership or contracting. 

Buy versus Build: A Qualitative Comparison of Financial, Tax and Regulatory Issues Influencing Utility Solar Procurement, a new report from the Solar Electric Power Association, explores the factors that impact a utility’s decision whether to buy (PPA) or build (own) solar generation. Considerations include:

  • How imputed debt, cost of capital and accounting treatment affect the financial decision-making process
  • Whether investor-owned utilities will be influenced by tax incentives to build solar generation
  • Creative ownership structures that may help municipal and cooperative utilities monetize the benefits of tax incentives
  • The effect of regulatory considerations, such as integrated resource planning and cost recovery risk, on a utility’s determination whether to build or buy?

Login to download the report. For more information, contact Becky Campbell at 202.559.2030.