Have you got questions? We’ve got answers. Here’s a guide to need-to-know information about the Distributed Solar Solutions program.
In one of the following three ways:
There will be a total of 10 MWs available in the 2017 DSS capacity offering. Eligible project system sizes must be > 50 kW and ≤ 2 MWs.
The capacity will be applied for by and awarded through your local power company (LPC). The LPC may elect to retain any awarded capacity or transfer it to a developer/partner.
The initial application period is March 1 through 15, 2017. After applications have been received, the review and selection phase will take approximately 3 weeks, depending on the number submitted applications received. Applications will continue to be accepted until December 15, 2017, so long as there is remaining capacity available.
Seller must undertake the necessary investment to construct a renewable generating facility. These costs and obligations can include, but are not limited to, the following:
The main eligibility requirements for a DSS project are as follows. Each project must:
Yes, the DSS pilot program criteria is meant to ensure that projects help create better relationships and knowledge sharing between developers and LPCs. Applications should include one or more of the following features:
Local power companies served by TVA are the only eligible applicants who can apply for DSS capacity. As applicants, LPCs will need to submit the following:
Several payments are due to TVA at various stages of the DSS Application and DSS Contract phases, including an application fee and performance assurance fees. These payments do not cover interconnection costs or fees related to environmental reviews. The application fee is $1,000 plus $1 per kW DC of the gross nameplate capacity of the project. This application fee is non-refundable. Project transfer fees may also be applicable.
Depending on the creditworthiness of the seller, the seller may be required to pay performance assurance at different milestones throughout the process. During DSS Contract execution, Seller must pay $15 per kW. At the Notice to Proceed stage, the Seller must pay an additional $10 per kW. Upon the Initial Delivery Date, the Seller must pay an additional $100 per kW. After that, during years 3-4 of generation, $25 per kW will be returned to the Seller. During years 5-20 of generation, $25 more per kW will be returned to the Seller.
The DSS Contract uses a seasonal and time-of-day base price. For CY2017, accepted projects on average will be paid a base price of 3.148¢ per kWh. That base price will escalate 3% annually, beginning on January 1st of the calendar year following the Initial Delivery Date (IDD). On top of that base price, there is an un-escalated 2.73¢ per kWh paid throughout the term.
Initial Delivery Date, or IDD, means the date and time that TVA has officially given written approval that all conditions have been met by the seller, that there are no outstanding issues related to the project and that the project can officially begin generating and delivering energy to TVA for payment. Please see the DSS Contract and DSS Guidelines for more details regarding the conditions, issues, and specific process steps and circumstances that must be met.
NEPA is the National Environmental Policy Act that requires federal agencies to assess the environmental effects of their proposed actions prior to making decisions. All DSS projects will be subject to completing a NEPA review following contract execution. This process typically takes six months or more, and the applicant is responsible for all costs associated with conducting the environmental review.
Seller must assign all rights, title and interest in the RECs and all other environmental attributes to TVA. If the project is a qualifying community solar project, any associated RECs can be retained by the seller.
Notice to Proceed occurs when TVA has provided official written approval for the Seller to purchase materials and begin construction of the project at the site. This NTP approval means that the Seller has successfully demonstrated compliance with the criteria required to achieve this DSS process milestone to begin the construction phase of its project. Please see the DSS Contract and DSS Guidelines for more details regarding the NTP conditions, issues and specific process steps and circumstances that must be met.
From contract to generation, this process can take a little over two years. The application phase up to the contracting phase takes about six months. From the contracting phase to Notice to Proceed (NTP) phase takes about one year, and NTP to Initial Delivery Date (IDD) takes a final year.