Published Nov. 16, 2018
There are two main policies that states can adopt that incentivize solar installation. Most states have one or both, but according to the National Renewable Energy Laboratory West Virginia and Kentucky have neither.
The first is called a third-party power purchase agreement, or PPA. That allows a private, third-party developer to install a solar system on your property and then sell you the power that that array produces at a fixed rate for typically 15 to 20 years.
Tax-exempt entities such as schools, churches and local governments especially benefit from PPAs, because they aren’t eligible for the 30 percent federal income tax credit. Beginning in 2020, the federal solar tax credit will begin ramping down.
“A power purchase agreement allows them to install solar with zero up-front cost, potentially lower their energy bills from day one, and it’s also a really popular way for commercial businesses to go solar on a larger scale than that business is potentially going to be able to invest in with their own capital up front,” said Autumn Long, program director of the nonprofit West Virginia Solar United Neighbors.