TVA change may make solar projects less attractive to businesses

By ERICA ESTEP
6 News Reporter

KNOXVILLE (WATE) - Large commercial operations might be less likely to turn to the power of the sun after changes to the Tennessee Valley Authority's solar energy program. 

A 500-kilowatt project was just announced at Wampler's Farm Sausage in Lenoir City, and installers say hundreds of jobs were created from it. 

A package of grants and tax breaks helped make it possible. Wampler's also relies on TVA to buy the power it generates and reduce the company's utility bill.

TVA announced in September it would shift its focus away from these large-scale solar projects.

It's a change that will affect companies like Knoxville's Sustainable Future.

"It's definitely going to affect our big sales," said Marcy Whittlesey, sales director for Sustainable Future, "but we're just going to have to adjust and sell more of the smaller ones."

Sustainable Future is a home-grown, green business, specializing in solar power. The company has seen tremendous growth, starting with just two employees six years ago to more than 20 today.

State and federal incentives to boost green jobs and solar power have played a huge role, especially the boost from TVA.

"Basically TVA Generation Partners program purchases back the power you produce with your solar panels at a higher rate per kilowatt hour. So you get a 12 cent premium over the current  market rate," Whittlesey explained. 

TVA has capped its previous 200 kilowatt maximum project, to 50 kilowatts.

In a press release TVA said in part, "The region's tremendous solar growth in 2010 caused the pilot to quickly outgrow Green Power Switch. The shift back to the original focus on small-scale installations will restore the balance of supply and demand necessary to allow Generation Partners and Green Power Switch to continue as long-lasting, successful endeavors."

"Unfortunately it will put a damper on our larger installs," said Whittlesey, "but the phones are still ringing."

TVA says the shift is supporting smaller solar business and residential projects. 

Changes to the Generation Partners program took effect on September 16. Local distributors, like Sustainable Future, are honoring any commitments for incentives made before that date.