Local solar companies are nervous about upcoming changes to Generation Partners, the Tennessee Valley Authority’s incentive program for green energy.

The program, introduced in 2003 to fund small-scale renewable projects with revenues from the Green Power Switch program, has been operated by consumers agreeing to buy certain amounts of energy produced by renewable or green sources.

This year, Generation Partners will get a new name, Green Power Providers, and new features.

According to TVA’s website, participants in the revamped program will get an initial $1,000 incentive and are paid the retail rate for power plus a premium of 12 cents per kilowatt hour for solar, along with 3 cents per kilowatt hour for wind, biomass and small hydro projects, for 10 years.

For the next 10 years, they will be paid the retail rate only. Under the current program, solar system owners receive 12 cents plus the base rate, totaling about 22 cents, per kilowatt-hour of solar electricity.

Contracts also are extended from 10 to 20 years, which is different from the old program. Premium amounts will be reviewed and evaluated annually with plans to phase them out over time. Participation will also be subject to annual limits that reflect budgets and renewable market conditions.

“Generation Partners has been a real driver for solar development in the Valley, creating jobs and diversifying TVA’s portfolio,” says Steve Johnson, president of LightWave Solar, the area’s largest installer of solar PV systems.

“Unfortunately, it appears that TVA will be scaling back the program. Because of the uncertainty, we are encouraging Tennessee businesses and homeowners to become TVA Generation Partner participants and lock in the 12 cents above base rate for 10 years. That way businesses and residents receive the best possible returns.”

TVA is working with stakeholders, power distributors and the Tennessee Valley Public Power Association to refine the guidelines for Green Power Providers. Until the new guidelines are available, TVA will continue to accept new applications under the existing Generation Partners guidelines.