Signed in 1978, it requires utilities to purchase electricity generated by qualifying non-utility producers.
Signed into law on November 8, 1978 as the National Energy Act. PURPA is a broad statute aimed at expanding the use of co-generation and renewable energy resources. PURPA created a new class of power producers called "qualifying facilities" (QFs). PURPA requires utilities to buy power from non-utility generators who qualify under PURPA's criteria. QF generators include those power producers that use renewable and alternative energy sources such as hydro, wind, solar, geothermal energy, biomass, municipal solid waste or landfill gas fuel to generate power. Other QF producers include co-generators.
In the USA only: this is part of the National Energy Act. PURPA is intended to encourage the conservation of energy, more efficient use of resources, and equitable energy rates. Some important measures relevant to The Solar Guide include sections on net metering and incentives for renewable energy.