House approves bill adding power-purchase agreements as a rooftop solar option
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Summary
The Utah House on Feb. 22 passed House Bill 244 to permit power-purchase agreements (PPAs) for rooftop solar, creating a third option—alongside purchase and lease—under which companies install and own systems and sell power to homeowners. The bill exempts municipal utilities and will take effect after a PSC cost-benefit analysis.
The Utah House on Feb. 22 approved House Bill 244, adding power-purchase agreements as an option for residential solar customers and creating new contract and consumer-protection rules for rooftop systems.
Representative Gibson, the bill sponsor, told colleagues that HB 244 "looks to offer a third option in the form of a PPA or power purchase agreement." Under the proposal, a solar company can place a system on a homeowner's roof, maintain the equipment and sell the homeowner the electricity under a long-term contract — commonly about 20 years — while retaining ownership of the panels.
Gibson said municipal and cooperative utilities are exempt, and the bill will not take effect until the Public Service Commission completes a cost-benefit study of net metering. "This bill does exempt your municipal and rural electric companies," Gibson said, adding that the change gives homeowners another pathway to solar with lower upfront costs.
During floor debate, Representative Ivory pressed for a provision clarifying that the PSC could revisit net-metering decisions; an amendment (Amendment 2) was offered to make clear that the net-metering matter could be revisited and was adopted. "The purpose of this amendment ... is to make sure that this net metering proceeding ... wouldn't foreclose all considerations of further net metering proceedings," Ivory said.
Other questions focused on consumer protections if a company holding a PPA went out of business. Gibson said PPAs are often sold on secondary markets and that another company would likely acquire the contract; if not, the company would remove the unit and repair the roof and the homeowner would return to traditional service.
The House adopted the amendment and later the final passage. The clerk announced: "House bill 244, having received 72 yes votes, 0 no votes, passes this body and will be transmitted to the Senate for its consideration." The bill now moves to the Senate for further consideration.
Next steps: HB 244 will be transmitted to the Utah Senate. The text requires PSC review of net-metering costs before the PPA authority would take effect.
