Photo courtesy of DOE/NREL, Credit Sam Garst
In March, Gainesville, plans to launch a feed-in-tariff incentive plan that will enable residents and businesses in this progressive Florida University community to benefit from selling solar power back to their city-owned utility.
Feed-in Tariffs, a way of stimulating the proliferation of alternative energy production that’s been gaining popularity elsewhere in the world, has finally reached our U.S. shores.
At its December 18 meeting, the Gainesville City Commission endorsed GRU’s proposal to offer the nation’s first solar photovoltaic (PV) electric feed-in-tariff (FIT) program and ordered their legal staff to draft an ordinance. The program is scheduled to launch March 1, 2009
Gainesville’s FIT program is modeled after a successful program in Germany. Their program seems like a no-brainer to me.
Here’s how it works:
The feed-in tariff works because GRU buys back solar energy from participating customers at a rate of 32 cents per kilowatt-hour, a rate much higher than the cost of power from the grid.
Participants sign a 20-year contract with GRU and invest in their own PV systems to generate electricity. Income generated from Gainesville’s FIT is designed to cover the cost of PV equipment, financing and long-term maintenance. In the future, there may even be a chance to turn a tidy profit, as PV technology gets more efficient and the cost of equipment decreases.
FTIs add value to the community that’s not necessarily reflected in dollars and cents.
Similar to what has happened all across Germany as a direct result of FITs, generating more solar power in Gainesville will add value to real estate, create more local jobs, greater energy independence and reduced pollution.
Feed-in tariffs have been adopted by 45 countries, and a handful of U.S. states are currently debating it, In December 2008, the sprawling metropolis of Los Angeles adopted feed-in tariffs, crediting Gainesville for lighting the way.
For more info:
http://www.solarcitygainesville.org/
http://cleantechnica.com/2008/07/06/renewable-energy-feed-in-tariff-fit-introduced-in-congress/
Comments
Thanks for covering the story Mr. Hosking. We're very excited about our FIT here in Gainesville and glad to see others are taking notice. This year is going to be a time for increasing homeowner awareness and creating more jobs in our city. Keep your eye on the Gator Nation!
I wish to question whether Government Feed In Tariff schemes, although well intentioned, is poor economic policy in its current form, and whether it should be changed (or expanded) as described below.
It costs about $20,000 for a household to install solar panels to offset their household energy usage, and it costs more than $1,000 per year for electricity consumers to 'subsidise' each household receiving the generous 'feed-in' tariff, not to mention the cost of any installation rebate subsidy.
It is smarter if a household is able to invest in a 1/1000 share of a 2.5 mw Government large wind turbine (estimated cost $5,000 per household), which would generate the same amount of renewable energy.
Households cannot do this themselves, and need Government to implement and manage the scheme.
Potentially, it would
(1) tap a very large funding source for renewable energy (which the Government cannot fund by itself),
(2) enabling many more households who cannot afford $20,000 for solar energy to offset their energy consumption with renewables,
(3) not require $1,000 per year per household premium for 'feed-in' subsidy.
(4) not require installation rebate
(5) run at no nett cost to the Government or other electricity consumers.
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!