. Other Factors Promoting Small Size
Large plants can take longer to permit than their smaller counterparts and generally require longer environmental reviews. The production tax credit (PTC), a credit awarded for renewable energy generation, offers yet another incentive for developers to construct small plants. To be eligible for the PTC, developers’ plants must begin operation within a challengingly short timeframe. The PTC, which has been cited by many experts as the most important policy needed to move the geothermal industry forward, incentivizes developers to create smaller plants with consequently smaller lead times.