Outka, 10 - Visiting Scholar in Energy and Land Use Law, Florida State University College of Law; faculty member, Florida State University's Institute for Energy Systems, Economics, and Sustainability (IESES) (Uma, 37 Ecology L.Q. 1041, “Siting Renewable Energy: Land Use and Regulatory Context” lexis)
A second consideration that implicates siting is who can own a rooftop solar system. Florida law recognizes "customer-owned renewable generation," but there is presently no regulatory structure to facilitate utility ownership of customer-sited renewable energy. n243 Elsewhere, this is beginning to change. As Professor Michael Dworkin recently observed, "the relationship between the utility and distributed energy resources is [*1083] evolving." n244 The implication for renewable energy siting is the potential for a far greater supply of rooftop sites coming available for power generation. Utility ownership of these resources is a fairly new concept that addresses two issues: the financing barrier to installation by individual property owners, n245 and, more importantly, regulated utilities' profit imperative to obstruct widespread DG. n246 In Florida, as in most states, utility profits have not been decoupled from electricity sales. n247 Florida properties generating electricity onsite reduce consumption of utility-generated electricity. For this reason, utilities have typically perceived DG "as a third-party-owned asset that cuts into the rate base and adds a complicated and unprofitable layer to the system." n248¶ According to Professor Dworkin, policies that support utilities' ownership of PV assets on customer property could reverse that disincentive and yield a number of benefits. This model could rapidly increase the number of "available" sites for PV installation, with utilities in a position to consider the most beneficial sites and system sizes in light of grid management concerns. n249 It would also provide a strong incentive for utilities to perfect and streamline interconnection and advance grid updates to accommodate variable and two-way flow. n250 The NREL is pursuing research into how best to assist state agencies and utilities with pilot programs for so-called "second-generation business models," including utility shared or sole ownership of DG. n251
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