DC Circuit Court Clarifies Solar-Plus-Storage Eligibility Under PURPA
The U.S. Court of Appeals for the D.C. Circuit has issued a significant ruling in the case of Solar Energy Industries Association (SEIA) v. FERC on September 9, 2025. The decision clarifies the eligibility criteria for solar-plus-storage facilities under the Public Utility Regulatory Policies Act (PURPA).
The court ruled that the capacity factor is not the sole determinant for eligibility under PURPA. Instead, it established that a solar plus storage hybrid facility should be evaluated based on its peak electrical output injected into the power grid. This means that the 'power production capacity' is the amount of AC power the overall facility transmits to the electrical grid, not the cumulative inverter values.
Broadview Solar submitted a facility with 80 MWac of solar inverters and a 50 MWac battery inverter as an 80 MWac-or-less PURPA-eligible facility. The court upheld FERC's determination that the 'power production capacity' of such a facility is defined by its 'send-out capacity', not the combined rating of its solar and battery inverters. The final sentence in the concurring opinions emphasized that the maximum amount of AC power a facility can deliver to the electrical grid at any one time defines its 'power production capacity'.
The dissenting opinion, however, may hint at further litigation. Steptoe notes that it could lead to an 'en banc' hearing or even a Supreme Court review, possibly focusing on the definitions of 'facility' and 'power production capacity'.
Citizens for Renewable Energy and Local Environmental Advocates have filed lawsuits against Broadview Solar's facility. The court also observed that facilities delivering electricity directly to neighboring facilities may not apply for PURPA approval. This ruling clarifies the eligibility process for solar-plus-storage facilities under PURPA, potentially paving the way for more such projects.
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