Long Island Power Authority Announces New And Expanded Clean Solar Initiative Feed-In Tariff Program


The Long Island Power Authority (LIPA) recently announced its Clean Solar Initiative Feed-In Tariff-II (FIT-II), a feed-in tariff program for solar projects between 100 kW and 2 MW in size and located in LIPA’s service territory. FIT-II is currently open for public comment, and will be effective only upon formal approval by the LIPA Board of Trustees.

FIT-II is capped at 100 MW, and follows the first version of the Clean Solar Initiative Feed-In Tariff (FIT-I). Unlike FIT-I, projects will not be selected for participation in FIT-II on a first-come, first-served basis. Instead, all applications submitted within the application period will be evaluated; those that pass a preliminary screening process of technical and administrative review will be eligible for further consideration under a Clearing Price Auction mechanism.

Each application will include a price bid ($/kWh) for energy to be delivered from the proposed project. Those applications that pass the initial screening will be ranked in order of bid price, and the lowest-priced projects will be accepted for FIT-II participation, subject to the overall program capacity cap. The highest price bid among the accepted projects will the “Clearing Price,” and all accepted projects will be awarded 20-year power purchase agreements at the Clearing Price. In addition, projects located in the South Fork will receive a price premium of $0.07/kWh (detailed eligibility requirements for the premium are provided by LIPA).

Subject to program approvals, LIPA expects to take FIT-II applications from September 30, 2013, through January 31, 2014.  By the end of the year, LIPA is expected to issue two additional renewable energy initiatives: A 20 MW feed-in tariff and an RFP for up to 280 MW of renewable energy.

More information, including FAQs, is available on LIPA’s FIT website.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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