The Federal Energy Regulatory Commission (FERC) plays a critical role in regulating aspects of solar energy within interstate electricity markets and ensuring fair market access for renewable energy producers. Key functions include:
Oversight of Solar Facility Rights
FERC enforces the Public Utility Regulatory Policies Act (PURPA), which guarantees small solar power producers (Qualified Facilities, or QFs) the right to sell energy to utilities at avoided-cost rates. In a December 2024 opinion, FERC reinforced that utilities cannot require a facilities study or interconnection agreement as a precondition for purchasing power from QFs, preventing delays that could block solar projects.
Market Regulation and Transmission Planning
FERC oversees regional transmission planning to ensure equitable access for solar and other renewables. A 2024 final rule reformed transmission planning processes to improve cost allocation and infrastructure development, directly affecting solar integration into the grid. However, FERC’s Minimum Offer Price Rule (MOPR) in PJM markets has drawn criticism for disadvantaging state-backed renewable projects, though it clarified that voluntary renewable energy credits (RECs) are not considered subsidies.
Grid Reliability and Cost Allocation
FERC ensures reliable electricity delivery by monitoring compliance with PURPA and transmission standards, which is critical for integrating variable solar generation. They also address cost-sharing mechanisms for grid upgrades needed to accommodate renewable energy.
By balancing market fairness, infrastructure development, and regulatory compliance, FERC significantly influences solar energy integration and market participation.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-role-does-the-federal-energy-regulatory-commission-ferc-play-in-regulating-solar-energy/
