Feed-in Tarrif Laws

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Called the Policy to change the world.

I'm new to this concept but it sounds like a smart way to go.

The refined origins are from Germany.
The Aachen Solar Tariff Model

From the Wiki

In the effort to combat climate change, the increased deployment of renewable energy sources is regarded by many as critical. One major obstacle to this adoption is the retail price of electricity generated from renewable sources, which is typically more expensive than the retail price of electricity generated from fossil fuels. A FiT is a revenue neutral way of making the installation of renewable energy more appealing. The electricity that is generated is bought by the utility at above market prices. For example, if the retail price of electricity is 10¢/kWh then the rate for green power might be 40¢/kWh. The difference is spread over all of the customers of the utility. For example, if $100,000 worth of green power is bought in a year by a utility that has 1,000,000 customers, then each of those customers will have 10c added on to their bill annually.
Thus, a small annual increase in the price of electricity per customer can result in a large incentive for people to install renewable energy systems. This is the essence of a FiT: it is a mechanism to instigate a change in the way power is produced, gradually shifting from present polluting means to non-greenhouse methods.

Political action page:
The World Future Council: Arguing for Feed-in laws

 

[TEG]

Some people who don't believe in global warming and aren't bothered by distant power-plant pollution aren't going to be happy to pay more to subsidize someone else's green energy. These "spread the costs" approaches are always controversial because not everyone is in agreement. Something like this would need to be put to a vote to make sure that a significant majority wants the approach.

Someone once told me that they were upset that some of their tax dollars were used to subsidize my solar panels. The "green movement" seems well positioned to push through many of these things as "in the best interests of the public in general", but we need to be careful not to push too hard or there could be backlash.

 

[vfx]

Someone once told me that they were upset that some of their tax dollars were used to subsidize my solar panels.

Funny 'cause we subsidize 10 billion dollars a month for the alternative.

How does $25,000 dollars sound to them?

 

[mherzfeld]

"... increased deployment of renewable energy sources" (RES)

Relative higher cost of energy FiT's are unlikely in the states.

'On February 14, 2008, the California Public Utilities Commission has made new feed-in tariffs available for the purchase of up to 480 MW of renewable generating capacity from small facilities throughout California. "

Feed-In Tariffs Available for the Purchase of Eligible Small Renewable Generation
Terms and Conditions of Feed-In Tariffs

As a result, the value of energy based on time and usage would be likely for Customer Sited Photovotaics (CSPV) for distributed generation. In addition, there are options for centralized generation - Renewable Energy Resources (RES) of Concentrating Solar Power (CSP), Concentrating Photovoltaics (CPV), ... including micro methods - micro-CSP. - as high temperature options. For mid-temperature would be solar thermal (ST), space heating, ... - and other passive options.

With regards to the inverters for active systems, the options would be micro-inverters or maco-inverters.

The average completed systems size in California would be approximate 4kW.

http://www.energy.ca.gov/renewables/emerging_renewables/COMPLETED_SYSTEMS.XLS

Ironically, with regards to the Telsa, about 12 modules at would result in a distance of approximately 12,000 miles per year at a cost of approximately < $25,000 - depending on location installed typically.

Solar Photovoltaic Electricity Price Index

 

[vfx]

Martin, Thank you for the informative and detailed post. I looked at the SCE page and I think I get it.

So if I install more Solar (and/or Wind) than I would need (like Larry Hagman) this might be a better way to get cash back than net metering. Downsides would of course be when generating less power than used and it looks like you are locked into a fixed buyback price. Also it looks like you forfit all other rebates and tax perks if you sign up for WEP.
Has anyone written on the pluses and minuses of this plan in small scale VS net metering?

 

[vfx]

Can Net Metering and FiT co-exist?

Looks like it came close in CA.

Net-metering or Feed-in Tariff? Can They Co-exist?

The comments contain some good points as well.

 

[TEG]

More info at Wikipedia.

Germany has had a hyperactive solar market due to very generous FiT based incentives.
More on Germany's FiTs.

Another article on the economics

 

[vfx]

The snowball starts art the top of the hill.

This month Gainesville, Fla., became the first city in the United States to introduce higher payments for solar power,...

Hawaii, where sky-high prices for electricity have stirred interest in alternative forms of power like solar, hopes to have a similar policy in place before the end of the year. The mayor of Los Angeles wants to introduce higher payouts for solar power. California is considering a stronger policy as well, and bills have also been introduced in other states, including Washington and Oregon.

... he had gotten calls from other cities and states since announcing the policy.

The new payment method is referred to as a “feed-in tariff” in Europe. It is, in essence, a mandate by the government telling a utility to pay above-market rates for green electricity.

 

[Joseph]

Gainesville????

What an odd place for progress. Gainesville is just a college town in the middle of nowhere.

 

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Ontario Passes Aggressive Feed-in Tariff Legislation

Maybe our local politicians are doing the same. :redface::smile:

 

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Vermont Feed-In Tariffs Become Law

Vermont’s legislation bases the tariffs on the cost of generation plus a reasonable profit. Costs of the program in Vermont are borne by ratepayers, not taxpayers ... system.

Vermont’s feed-in tariff program contains the key elements of the successful policies found in Europe:

Tariffs are differentiated by technology
Tariffs are differentiated by size.
Tariffs set on the cost of generation plus profit
Profit set by a reasonable rate of return
Long contracts terms
Regular program review

 

[vfx]

Feed-in Tariff was aways a difficult mouthful.

Now they are calling it "Renewable Energy Payments (REPs).

Here is site that includes a REP Endorsement Statement if you want to back the idea to Federal, Stae and Local law makers.

 

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Coming to CA.

Calif Governor Signs Solar-Power Feed-In Tariff Bill Into Law

http://www.mercurynews.com/news/ci_13546308?nclick_check=1

 

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http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0901-0950/ab_920_bill_20090226_introduced.pdf

 

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Just some old coverage on CA REPs:
Schwarzenegger signs solar bills AB 920 and SB 32 | Greenspace | Los Angeles Times

Governor Signs Two Big Solar Bills
AB 920 and SB 32 Continue California’s Drive toward a Million Solar Roofs, Give Consumers New Incentives to Go Solar
Sacramento – Californians have two more reasons to go solar tonight. Governor Schwarzenegger signed two popular solar bills designed to give consumers added incentive to invest in a solar roof and help the state achieve its aggressive clean energy goals.
AB 920, authored by Assembly member Jared Huffman (D-Marin) and sponsored by Environment California, radically changes the dynamic between consumer and utility by requiring utility companies to write a check to their customers for surplus solar electricity generated on an annual basis. Previously, under the state’s net metering law, utility companies were allowed to receive surplus solar electricity from their customers for free. AB 920 requires the Public Utilities Commission (PUC) to set a rate at which utility companies shall compensate solar customers whenever a solar system generates more electricity than a home or business uses in a given year.

“Instead of writing a check to your utility company, you’ll be getting a check back,” said Bernadette Del Chiaro, clean energy advocate with Environment California which sponsored the legislation. “Changing the dynamic between utility and customer is key to encouraging more people to invest in solar power while also maximizing conservation and energy efficiency.”


Governor Signs Two Big Solar Bills - Environment California
KQED audio:
AB 920: the California Solar Surplus Act of 2009 - Environment California

 

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The running Solar Power International Conference, in LA right now has spurred conversations about Renewable Energy Payments (REPs)

http://sunpluggers.com/news/los-ang...ing-germanys-success-with-solar-program-01015

http://www.latimes.com/business/la-fi-utility-tariff-20101012,0,4581782.story?track=rss