#1DSIRE NC CLEAN ENERGY TECHNOLOGY CENTER DSIRE insight 3rd Party Solar PV Power Purchase Agreement (PPA) www.dsireusa.org / June 2019 NV: With system size limitations CO: With system size limitations ab AZ: Limited to certain sectors TX: With system size limitations VA: Limited capacity; limited to certain utilities & customer types DC AR: Limited to tax-exempt entities FL, LA, MS, NC, SC: Solar leases explicitly allowed U.S. Territories PR Guam USVI NMI Apparently disallowed by state or otherwise restricted by legal barriers Authorized by state or otherwise currently in use, at least in certain jurisdictions Status unclear or unknown At Least 28 States + Washington DC and Puerto Rico Authorize or Allow 3rd Party Power Purchase Agreements for Solar PV * Commission rules implementing recent statutory changes have not yet been adopted#2DSIRE NC CLEAN ENERGY TECHNOLOGY CENTER DSIRE insight Important Information Regarding 3rd-Party Solar PPAs State authorization of 3rd-party solar PV PPAs allows residential customers to purchase electricity generated by solar panels on their roof (usually at a price lower than the retail rate of electricity) from a third party that owns the PV system. Some states that limit or prohibit 3rd-party solar PV PPAs explicitly allow for residential solar leasing arrangements. Legal authorization for residential 3rd-party solar PV PPA arrangements usually lies in the definition of a "utility” in state statutes, regulations or case law; in state regulatory commission decisions or orders; and/or in rules and guidelines for state incentive programs. States that have authorized the use of 3rd-party PPAs may not have done so in every jurisdiction. For example, municipal utilities may not allow 3rd-party PPAs in their territories even though they are allowed or in use in the state's investor-owned utility (IOU) territories. Though a 3rd-party PPA provider may not be subject to the same regulations as utilities, additional licensing requirements may still apply. This map does not represent interstate 3rd-party solar PV PPA authorizations relevant to large generators. In states that limit or prohibit intrastate PPAs, interstate PPAs for wholesale electricity market sales may be allowed by federal laws in areas under the jurisdiction of regional, multi- state transmission organization authorities. This map and information is provided as a public service and does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA.#3DSIRE® NC CLEAN ENERGY TECHNOLOGY CENTER DSIRE insight Alabama: AL code § 37-14-32 Authorities/References Arizona: ACC Decision 71795, Docket E-20690A-09-0346 (limited to schools, governments or other non-profit entities) Arkansas: S.B. 145 (2019) (limited to Solar Services Agreements qualifying for safe harbor protection under 26 U.S.C. 7701(e)(3)(A) • for tax-exempt entities) and explicitly allows solar leasing. Note: Commission rules implementing S.B. 145 have not yet been adopted California: Cal. Pub. Util. Code § 218, § 2868 Colorado: S.B. 09-051; PUC Decision C09-0990, Docket No. 08R-424E (2009) (limited to systems generating no more than 120% of the average annual electricity consumption) Connecticut: Clean Energy Finance and Investment Authority D.C.: REIP Program; PSC Order 15837 (2010) Delaware: S.B. 266 and S.B. 267 (2010) Florida: PSC Decision: Docket 860725-EU; Order 17009 (1987); PSC declaratory rulings have permitted residential solar leasing Georgia: H.B. 57 (2015) Hawaii: S.B. 704 (2011) Illinois: 220 ILCS 5/3-105, 16-102; 83 III. Adm. Code, Part 465 Iowa: Iowa Supreme Court, No. 13-0642 (2014) (the lowa Supreme Court's decision overruled an earlier IUB determination that a local solar company who proposed a 3rd-party PPA would be a "public utility" under lowa law) Kansas: KS Department of Revenue Opinion O-2016-001 Kentucky: KRS 278.010 (3) Louisiana: La. R.S. 45:121 Maryland: H.B. 1057 (2009) Maine: Title 35-A section 3202 Massachusetts: 220 CMR 18.00 Michigan: 2008 Public Act 286; PSC Order Docket U-15787 . Mississippi: Any entity selling electricity is subject to public utility regulations stipulated in MS code § 77-3-3, but MS net metering rules explicitly allow leasing of solar equipment. Nevada: NRS 704.021 (A.B. 186, 2009); PUC Orders 07-06024 New Hampshire: PUC 902.03; PUC Docket DE 10-212 (letter 1/31/12) New Jersey: N.J. Stat. 48:3-51; N.J.A.C. §14:8-4.1 et seq. New Mexico: H.B. 181 and S.B. 190 (2010) and 07-06027 (limited to systems generating no more than 150% of the average annual electricity consumption) New York: NY CLS Public Service § 2.13 North Carolina: General Statutes § 62-3(23) prohibits 3rd Party Sales, but H.B. 589 (2017) explicitly allows leasing of solar equipment Ohio: PUC Order 06-653-EL-ORD (11/05/2008) Oklahoma: Attorney General Opinion 2018-5 Oregon: PUC Order, Docket 08-388; O.R.S §757.005 Pennsylvania: PUC Order, Docket M-2011-2249441 Puerto Rico: No policy reference available; based on news reports and articles Rhode Island: R.I. Gen. Laws § 39-26.4 South Carolina: SC Code Section 58-27-2610(E) and Section 58- 27-2630(A)(9) arising from S.B. 1189 (2014) prohibit 3rd Party Sales, but S.B. 1189 explicitly allows leasing of solar equipment Texas: S.B. 981 (2011) (limited to systems generating electricity no more than the average annual electricity consumption) Utah: H.B. 244 (2016); Title 54 Chapter 2)(1)(19) Vermont: No policy reference available, based upon news reports and communications Virginia: H.B. 2390 (2017); S.B. 1769 (2019) West Virginia: WV Code §24-2-1