We’ve gone beyond the lifespan of a typical solar panel, so what happened to 20 or 25 year PPAs? This suggest more inquiry.
“The potential is there for a mega increase in solar deployments,” Mercy says, adding that all methods of project finance will be affected, particularly PPAs.
The project, owned by NRG Energy NRG +2.51% and MidAmerican Solar, sits on 2,400 acres between Yuma and Phoenix. They hired Arizona-basedFirst Solar FSLR -0.24% to build and operate the project, which also uses First Solar’s thin film solar panels that rely on a compound of cadmium-telluride to convert sunlight into electricity.
“Utilities had been willing to pay more because many states, including California, require them to derive a significant percentage of their power from renewable energy sources. But now utilities in many states are on track to meet those requirements, giving them less incentive to buy higher-priced solar energy —especially as a steep decline in natural gas prices has cut the cost of power from gas-fired generators.”
Is this also the reason that Utilities are pushing back against residential Solar Systems?