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Building the Bridge to a Merchant Solar Future

Building the Bridge to a Merchant Solar Future

Full Title: Building the Bridge to a Merchant Solar Future
Author(s): David Gerhardt, Lin Deng, and Lalit Batra
Publisher(s): ICF International
Publication Date: September 1, 2017
Full Text: Download Resource
Description (excerpt):

Solar PV is edging beyond the Power Purchase Agreement (PPA) platform and into the merchant market as the driver for growth. Historically, PV project development has been driven by utilities issuing PPAs to meet mandated state renewable requirements. However, many states are already hitting or on track to meet their Renewable Portfolio Standard (RPS) targets. In addition, steep declines in solar capital costs and technology improvements have affected PV power economics and PPA pricing significantly. Solar PPA prices have decreased every year since 2006 and have fallen by more than two-thirds since 2009. As a result, solar developers will be looking to new growth drivers for the PV space. As solar costs approach $1/watt and continue to decline, merchant solar will grow, especially in regions with better solar resources.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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