Solar Communities Feed-In Tariff V

Feed-in Tariff V

Feed-In Tariff for Interconnection of Solar Photovoltaic Resources Mounted on Commercial Customer Ground Mount Open Space, Rooftops or Carports from 200 kWac up to less than 5,000 kWac

By resolution dated May 20, 2020, the LIPA Board of Trustees established the Solar Communities Feed-in-Tariff V (“FIT V”) under SC-11 for the interconnection of up to 20 MW of solar photovoltaic resources mounted on commercial customer ground mount open space, rooftops or carports with a capacity equal to or greater than 200 kWac up to less than 5,000 kWac.

For the first enrollment period of June 1, 2020 until September 30, 2020, the Authority received 47 valid applications representing 60.9 MW. Following a comprehensive evaluation process, projects representing 21,499.7 kW were initially accepted into the Solar Communities Feed-in Tariff V program. The remaining applications that were not accepted into the program were placed on the Waiting List. Applications on the Waiting List will be considered for acceptance into the program in the event that any accepted project(s) drop out of the process or if the program size is increased. As per the Tariff, further review and determinations will be made following each quarterly enrollment period.

Program update as of October 14, 2022: As of September 30, 2022, awards have been made for 13,999.5 kW with the price cap remaining at $0.1463 per kWh. There are 17 projects representing 17,194.8 kW on the Waiting List. Applicants who are on the Waiting List may submit a revised application with no modifications other than price. The FIT V program is closed and no longer accepting new applications. Project information will be added quarterly as PPA’s are executed.

Any inquiries may be submitted to Power Markets at PwrMktFIT@pseg.com.


Eligible Projects

Eligible generation to the Feed-in Tariff V is limited to solar photovoltaic (PV) systems that generate electricity directly from sunlight. Additionally, generation must be ground mounted on racks installed in a non-residential Customer’s open space, on the roof of a non-residential Customer’s building or structure; or a non-residential Customer’s carport that is used to shelter motor vehicles. The carport must be installed over a paved parking area composed of asphalt, concrete, or similar permanent material. Additional requirements include:

  • The ground mount open space must be in accord with the local authorities’ regulations on forestation maintenance.
  • Eligible PV systems must be connected directly to the Authority’s distribution system (point of interconnection at 13 kV or lower voltage level) or transmission system (point of interconnection 23kV or higher) with a dedicated meter and must meet all the requirements of the Smart Grid SGIP and NYISO Small Generator Interconnection Procedures as applicable.
  • Eligible PV systems are required to use smart inverters that conform to the Authority’s technical interconnection requirements.

 
Following notification of award, applicant will have 10 business days to apply for interconnection with LIPA Smart Grid Small Generator Interconnection Procedures (“SGSGIP”) and/or NYISO Small Generator Interconnection Procedures, as applicable.

Projects are expected to demonstrate site control in a timely manner after being offered a PPA. For projects 200 kW – 1 MW, site control must be demonstrated within 6 months. For projects greater than 1 MW, site control must be demonstrated within 12 months. PSEG Long Island reserves the right to unilaterally cancel any project up to PPA execution.

Generation Projects that qualify under and satisfy all the requirements of this Tariff with a minimum output of 200 kW and a maximum output of less than 5,000 kW will enter into a 20-year term Power Purchase Agreement for Feed-in Tariff V with the Authority.

Additional eligibility requirements may apply. Careful review of the Solar Communities Feed-in-Tariff V leaves is advised to see all eligibility requirements.

Bid Evaluation Process

The Authority will use a sloped bid price cap curve in its evaluation process as detailed below. The sloped bid price cap represents the maximum price that may be paid to a project given the total (cumulative) amount of capacity from other projects with higher priority for acceptance in the program. This sloped bid price cap begins at $0.1649. Applications with a bid price above the sloped bid price cap will not be accepted. The lower end of the cost cap is set at $0.1300. There is a “kink” at 15 MW, at $0.1450 when the downward slope increases.

Sloped Offer Cap Design Concept

Sloped Bid Price Cap Calculator

To provide further assistance in understanding how the sloped bid price cap works, the Authority has developed a calculator where applicants may insert the total accepted capacity in kW to learn the price cap for additional projects, or alternatively enter a price to learn how much capacity can be accepted at or below that price.

Download the Sloped Bid Price Cap Calculator

Evaluation of the bids will not begin until the conclusion of each enrollment period. At that time, the lowest price bids which lie under the sloped bid price cap will be accepted first. Among projects with the same exact price, priority will be given to the smaller sized project. Applicants who submit more than one project of the same size and price must detail the ranked preference for those projects. Bidders who are awarded in each round will retain their award status, even as subsequent rounds unfold. Successful applicants will be offered a PPA at their as bid price.

Bidders who were not awarded in each round may be given the opportunity to remain on a Wait List. This list shall be used for future rounds as past awardees may drop out of the process. Wait List applicants also may submit revised pricing up to once per quarter without incurring a new application fee, as long as there are no other substantive changes. Offers from Wait List applicants may gain award if project attrition reduces prior awarded capacity or if they change their bid price to fit under the sloped bid price cap for subsequent evaluation periods.

Application Process

Applicants are instructed to complete the "FIT V - Application Cover & Appendix" and submit their bids electronically to Power Markets at PwrMktFIT@pseg.com. Applicants should receive an email acknowledging receipt of their application within three (3) business days. The application fee must be in the form of a certified check payable to PSEG Long Island and should be delivered within three (3) business days of application submittal at the following address:

PSEG Long Island
ATTN: Scott Brown, Manager - Power Asset Management
175 E. Old Country Road
EOB, 1st Floor
Hicksville, NY 11801

A scanned image of the check must accompany the e-mail submission of this application. The application fee is non-refundable.

Any additional questions may be submitted to PwrMktFIT@pseg.com.


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