The Encumbrance Factor is 100 percent for solar and at least 10 percent for wind
What the document says“The term "Encumbrance Factor" means-- (A) 100 percent for a solar energy generation facility; and”
The section sets the Encumbrance Factor at 100 percent for a solar energy generation facility and at an amount the Secretary determines, but not less than 10 percent, for a wind energy generation facility. It also fixes the Annual Adjustment Factor at 3 percent.
What the document actually says“The term "Encumbrance Factor" means-- (A) 100 percent for a solar energy generation facility; and”
The term covers two kinds of plant. For a solar plant the figure is 100 percent.
For a wind plant the Secretary sets it. It may not fall below 10 percent. The figure feeds into the rent formula.
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