SB 32 – Renewable Generation

SB 32 expands the feed-in tariff program for large-scale solar facilities from 1.5 megawatts to 3 megawatts, potentially pushing utilities to construct massive solar installations on unused spaces like parking lots and warehouse roofs. Under a feed-in tariff, an obligation is imposed on regional or national electric grid utilities to buy renewable electricity (electricity generated from renewable sources, such as solar power, wind power, wave and tidal power, biomass, hydropower and geothermal power), from all eligible participants.

The cost-based prices therefore enable a diversity of projects (wind, solar, etc.) to be developed, and for investors to obtain a reasonable return on renewable energy investments.