Solar Electricity Sales Regulation

Summary

This practice note explains the regulatory framework under the Public Utility Regulatory Policies Act of 1978 (PURPA) surrounding the sale of electricity by solar utility providers. There is twofold regulation of solar electricity sales in the United States. At the wholesale level (the sale of electricity by generators to utilities), by the Federal Energy Regulatory Commission (FERC). And, at the retail level (the sale of electricity by utilities to the general public), by state public utility commissions. Especially now that large solar utilities may cross the wholesale and retail divide, it is important for you to understand both tiers of solar electricity sales regulation. This will help you properly represent your solar utility provider clients, and also help you determine whether they qualify for exemptions from regulation.