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Waste Heat Recovery and RPS Policies in the US

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Waste Heat Recovery and RPS Policies in the US ( waste-heat-recovery-and-rps-policies-the-us )

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multiple parties wanting to purchase separate systems work together to place a bulk order. Working together allows them to benefit from wholesale equipment prices, reduced transaction costs, and greater ease in navigating the process. In practice: Community and group purchasing have had immense success in Portland, Oregon, under the banner of the Solarize program. The program is designed to help individuals make informed decisions using a group dynamic. For example, the Solarize program helps to accelerate adoption of solar by facilitating the removal of some of the process decisions such as which contractor to hire, how large a system to purchase, how to pay for the system, or simply where to begin. Community programs not only successfully promote the adoption of renewable energy, but they also play a major role in educating people about its benefits. These types of programs are useful for regions (such as LAC) where there is a lot of public skepticism about new or foreign technology. Third-Party Ownership Concept: Third-party ownership arrangements are used by entities (such as governments, municipalities, schools, non-profits, or other tax-exempt organizations) that are not eligible to receive federal or state tax credits and benefits, those that prefer not to own and maintain a system, or those lacking the upfront capital needed to invest in wind or solar. In a third-party ownership arrangement, an entity hosts the system on its building or land, but the system is owned by a separate business or investor who uses the available tax credits and benefits and sells the power produced by the system to the host. Benefits of third-party ownership include: • increased ability of non-eligible entities to take advantage of tax credits and depreciation benefits; • upfront costs substantially reduced or eliminated; • no responsibility for maintenance, operations, or sale of SRECs; • third-parties can aggregate multiple investors to get discounts and better financing rates; • predictable lower energy costs. A disadvantage of third-party ownership may be high transaction costs for commercial-scale installations. Thus, third-party ownership in the commercial context has typically been limited to systems of 250 kW and above. Public agencies may also experience a variety of obstacles, including debt restrictions, contract restrictions, competitive procurement requirements, or optimal site access. Renewable Energy Best Practices in Promotion and Use — Andrea Luecke — Page 18

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