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Utility solar business models

Mike Taylor, Solar Electric Power Association, Washington, DC, USA

U.S. electric utilities are beginning to explore participating in the U.S. solar markets in new and unique ways, including utility ownership of solar projects, innovative program designs that purchase solar energy from customers or third-party providers, and providing financing for customer or third-party projects. Known as Utility Solar Business Models, these utility innovations are expanding and diversifying the market in new and unique ways, driving hundreds of megawatts of new business, but how these new projects and programs impact the solar value chain and what is driving the change varies from utility to utility. This article lays out the evolving nature of utility engagement with solar markets, defines utility solar business models generally, and explores some of the specific program that utilities are proposing.

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