Feed-in Tariffs Gaining Traction in North America

North American feed-in tariff policies take off
by Ben Block – World Watch Institute – August 12, 2009

Clean energy advocates in Europe have long considered the feed-in tariff as an antidote to the industrial world’s fossil fuel dependency. Now, the United States and Canada are starting to catch on as well.

Feed-in tariffs (FITs) guarantee that anyone who generates electricity from a renewable energy source—whether they are a homeowner, small business, or large electric utility—is able to sell that electricity into the grid and receive long-term payments for each kilowatt-hour produced. Payments are set at pre-established rates, often higher than what the market would ordinarily pay, to ensure that developers earn profitable returns.

The FIT is credited for the rapid deployment of wind and solar power among world renewable energy leaders Denmark, Germany, and Spain this past decade. Similar policies have since been adopted by many other countries, leading the FIT to become the most prevalent tool for promoting renewables.

In North America, its adoption has been relatively slow. As public support for renewable energy increases, however, more governments are adopting FIT policies—often as a complement to the widely used Renewable Portfolio Standards (RPS) that require utilities to purchase minimum amounts of renewable electricity.

Several U.S. states and Canadian provinces began serious consideration of the FIT last year. More than a dozen states, one province, and numerous municipalities have since implemented some form of FIT.

“We’ve reached a tipping point where a feed-in tariff is no longer such an odd idea for America,” said Paul Gipe, the author of several books on wind energy and a FIT advocate. “In fact, it’s the best idea for rapid development of the massive amount of renewable energy that’s needed now.”

Feed-In Tariffs Work In Germany – Why Not Use Them in Oregon

Let all join in renewable revolution
By Jennifer Gleason – Guest Viewpoint – Register-Guard – November 18, 2008

Every Oregonian should be able soon to generate renewable energy from the sun and sell it to their local utility at a fair price.

Gov. Ted Kulongoski’s recently announced plan to protect the climate includes a pilot project that could make it possible for everyone in Oregon — including families, school districts, farms, vineyards, businesses and nonprofit organizations — to help generate energy from the sun.

If done well, this pilot project will be modeled on policies adopted in Europe that have made Germany the world leader in solar energy production. A well-crafted production incentive policy (known as a renewable energy payment, or REP, policy [also known as a feed-in tariff, or FIT]) guarantees that utilities will buy renewable energy — in this case, solar — at a fair price for an extended period.

The price is set to ensure that people generating the electricity will make a profit, but not a windfall profit.

With this guarantee, people are willing to invest in the equipment needed to produce renewable energy. Experience in Germany has shown that REP policies are the most effective and efficient way to promote the generation of electricity from renewable sources.

Ashland Expands Solar Power Policy

Ashland changes solar power policy
The Ashland Daily Tidings – September 21, 2008
 
The city of Ashland has expanded its landmark policy on selling excess power from residential solar panels in order to encourage large-scale projects.

People could receive credit on their electric bills for systems up to 25 kilowatts by feeding the extra electricity back into the city electric grid.

Now the Ashland City Council has raised the level to 50 kilowatts because more homeowners and businesses may be taking advantage of federal and state tax incentives to install bigger systems, said Ashland Electric Department Director Dick Wanderscheid.

Residential Solar Systems Can Make Financial Sense

The following article is an excellent primer for any homeowner considering installing solar panels. It was especially interesting to note the understandable difference between household incomes and solar panel installations.  It makes common sense that people with higher than average incomes would own higher than average valued homes and would be those homeowners who would most likely be in the market for value-added enhancements like in-ground swimming pools AND rooftop solar electice systems.

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Home solar energy systems in (Central) Oregon become more cost-efficient
Gail Kinsey Hill – The Oregonian Staff – August 8, 2008

Rooftop solar electric systems often are associated with the rich or zealous — a green privilege.

But sky-high energy prices, a degraded environment and new aggressive government policies are changing the who and the why — so much that the field is getting level.

The incentives that come with installing solar-electric panels have never been greater. With tax breaks and cash grants, (Central) Oregon homeowners can slash the cost of a photovoltaic system by about 60 percent.

Still, a lot of numbers are in the price tag, and it’s a close call. Consumers need to know why they’d take the plunge before deciding whether a purchase makes economic as well as ideologic sense.

A 2-kilowatt rooftop system — the typical size for a Central Oregon family — carries a total cost of about $20,000. But state and federal incentives now can cut the out-of-pocket expense to $7,500.

Two Central Oregon Solar Projects Effected by Pacific Power Inquiry

Clouds cast over 2 solar projects
Public-private partnerships in Bend, Redmond caught up in inquiry
By Peter Sachs / The Bulletin - June 13, 2008

Two Central Oregon solar power projects could find themselves in the dark now that a power company has asked the state to clarify laws related to such ventures.

While Pacific Power says it just wants to ensure customers are being treated fairly, environmental groups and solar companies say the appeal casts dark clouds over an industry that’s just starting to get plugged in.

Solar panels are slated for the Redmond Airport and the downtown Bend parking garage in deals between the respective cities and private companies.

Since governments don’t pay taxes, the federal and state tax credits available for installing new solar systems aren’t particularly helpful. But by partnering with private companies, everyone can win, said Jeremiah Baumann, the program director of the nonprofit group Environment Oregon.

The cities provide space for the solar panels and get reduced-cost electricity from them without having to come up with money for the panels. The solar companies get the tax breaks.

But lucrative federal tax credits could expire at the end of the year. And even if the state Public Utilities Commission rules in favor of the projects, it could take up to two months to reach that decision. That could make it hard for solar companies to finish by the end of the year to get the tax credits before they expire.

Bend’s Downtown Parking Garage Gets Solar Power

Although this project has been talked about for some time, city officials say they have finalizing the design of the city of Bend’s first solar energy project.

Work is expected to begin next spring on the project that will sit on top of the Centennial Parking Plaza at 61 NW Oregon Avenue. The city is using a $400,000 grant from Pacific Power’s Blue Sky Projects the city and is partnering with Bend-based SunEnergy Power Corporation to set up the 200 kW project.

With nearly 20 rows of solar panels mounted to steel trusses above the entire top level of the garage, the system will be one of the largest solar installations in Oregon.

SunEnergy, who will own the system, will bear the entire cost of buying, installing and maintaining the solar array, which will produce about 280,000 kilowatt-hours of electricity per year. That energy, enough to power about two dozen homes continuously, will be sold directly to the city.