D.C. Circuit Affirms FERC’s Definition of “Power Production Capacity” in Broadview Solar

On September 9, the D.C. Circuit upheld FERC’s view that a qualifying facility’s capacity under PURPA is measured by its maximum AC output to the grid—its “send-out capacity”—not by the sum of its DC components.

In Solar Energy Industries Association v. FERC, the court confirmed that even a facility with more than 200 MW of DC generation and storage is a qualifying facility as long as inverters cap AC output at 80 MW. This ruling stands despite the end of Chevron deference, giving developers and investors continued clarity on PURPA’s 80 MW ceiling.

Key takeaways include:

• A qualifying facility’s capacity is based on its maximum deliverable AC power to the grid, not its DC generating potential.
• The court emphasized that PURPA looks to the facility as a whole, not its individual components.
• Batteries may shift when power is delivered, but they do not increase the maximum AC output if inverter limits apply.
• Facilities may exceed 80 MW DC so long as their AC send-out remains at or below 80 MW.
• Petitioners may still seek further review, so the litigation may continue.

Read the full article for a deeper dive into the decision and its implications.