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ARTICLE · 03 FEBRUARY 2021

Update On Solar Power Plant Development In Florida

Holland & Knight
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Solar photovoltaic (PV) generation projects continue to grow in Florida. Although Florida's net metering rule1 has fostered smaller customer-owned rooftop solar projects...

United StatesEnergy and Natural Resources
D. Bruce May Jr.
D. Bruce May Jr.
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Solar photovoltaic (PV) generation projects continue to grow in Florida. Although Florida's net metering rule1 has fostered smaller customer-owned rooftop solar projects, the most dramatic growth has been in large scale2, utility-owned solar PV projects proposed by Florida's investor-owned electric utilities (IOUs).

The predominance of utility-owned projects can be traced to a combination of four factors. First, Florida law does not permit a third-party solar developer to make retail sales of electricity to others3, which essentially relegates the developer to making wholesale sales to IOUs and other electric utilities via wholesale power purchase agreements (PPAs). Second, current regulatory policy in Florida does not permit IOUs to earn a return on payments made to third-party solar developers pursuant to a PPA, so there is little incentive for IOUs to enter into PPAs with third-party developers. Third, although Florida law encourages the development of solar and

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