Why Isn’t the U.S. Embracing Feed-in Tariffs?
The sun is rising on a new era for renewable energy in Gainesville, Fla.
Starting this month, residents and business owners with solar panels connected to the power grid will get a monthly check from their city-owned electric utility, the result of a first-in-the-nation policy called a feed-in tariff.
The new policy essentially turns privately owned rooftop solar panels into micro power generators for the utility. The city will pay up to 32 cents per kilowatt-hour for power they generate over the next 20 years, delivering their owners about a 5 percent profit over the equipment’s lifespan.
Feed-in tariffs like this have long been the primary tool for financing renewable energy projects in Europe, and they are a reason Spain and Germany have become world leaders in wind and solar. Advocates say the system is simpler, more effective and less expensive than traditional U.S. incentives for renewable energy, which are an often byzantine mix of tax incentives, rebates, state mandates and utility programs.
So what’s standing in the way of wider adoption in the United States? (Continue reading…)
