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Secrecy within the price that California utilities purchase natural gas contracts is usually a new sign that PHOTOVOLTAIC has now passed current market price parity at from suppliers.

 

The utility-scale solar industry helpful to have to compete alongside a “Market Price Referent”. The idea was that, if a solar PPA could be priced at the same or only a typical natural gas PPA, then ıt had been considered competitive. Utilities in California have to be added by regulators to choose the cheaper option in contracting regarding electricity.

 

The MPR back then, in California, was NINE cents a kWh. Beating that price with 2009-era solar was a struggle, but prices dropped and so fast as more photo voltaic was deployed that, when the MPR were still being employed, it would appear in which solar would simply exhausted gas on price.

 

Now that solar PPAs think you are signed at less than 50 % that old MPR, all of a sudden it is quite difficult to look for any MPR or virtually any gas PPAs to compare and contrast prices. MPR figures should used in comparing solar to natural gas.

 

n the US, Initial Solar, SunPower, and several other key utility-scale players were building utility-scale solar from the 4 cent range considering that 2015. Even smaller municipal utilities are actually able to procure pv at 4 cents a new kilowatt-hour (for example, the hub utilities of Austin and Palo Alto).

 

To always be fair, comparing solar PPAs to propane PPAs is comparing apples to oranges.

 

When a utility signs a power Purchase Agreement (PPA) for a renewable source like solar who has no fuel cost, the utility simply makes sense a pre-agreed rate per kilowatt-hour for any next 25 years.

 

How that gas contracts are paid seemingly different.

 

Mike Jacobs, who leads regulatory reform with electricity markets as senior energy analyst in the Union of Concerned Scientists, had a good example. He likened payment of any natural gas contract to the method that you rent a car, where you pay one daily rate to acquire the car available to your account, but on top of the, you also buy gas running the car every day.

 

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