Feed-in Tariffs: The Most Effective Renewable Energy Policy on the Planet
Richard Deutschmann, VP Policy & Market Development at groSolar, starts off by discussing America's over dependency on fossil-fuels for energy generation and why solar energy is the most viable resource for energy generation for our country. He promotes the adoption of feed-in tariffs by the federal and local governments, arguing that this democratic policy will enable any citizen to start generating electricity, while reducing their energy costs and environmental impact. He demonstrates how well this policy worked in Germany and argues the same can be done in the US.
This presentation was given December 4, 2009 at the Solar Energy Focus Conference: Fall 2009 hosted by the Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) in Gaithersburg, MD.
To learn more please visit:
www.mdvseia.camp7.org
1. Feed-in Tariffs
The Most Effective Renewable
Energy Policy on the Planet
Richard Deutschmann
VP Policy & Market Development
groSolar
1-800-GOSOLAR
Grosolar.com
4. Feed-in-Tariff - Definition
• Standard, long term contracts for Renewable
Electricity generated(20-25 years typical)
• Priority access to the grid, simplified
interconnection
• Prices Differentiated
• By technology, size, application, and resource intensity
• Prices set by generation cost plus reasonable
profit (5-8%)
• Periodic Review (every ~2 years) with stepdowns
5. Benefits of Feed-in Tariffs
• Most democratic: Everyone can be an energy producer.
• Stimulates local banking to finance projects
• Creates local jobs faster than other policies
• Helps governments meet RPS and carbon goals
• Increases our energy and national security
- less dependence on foreign sources of fuels
- decentralizes our power plants & electrical grids
• Reduces transmission needs, in case of DG
• Displaces expensive peaking power
6. History of Feed-in Tariffs
• FITs originated after 1973 oil crisis
• PURPA emerged in US in 1978
• Portugal creates premium tariff for RE, 1988
• Denmark soon followed
• Germany creates first modern FIT in early 1990s
• Germany now the world leader in RE production
• FITs now the policy of choice in more than 45 countries
• Ontario first North American fully differentiated FIT, 2009
7. Case Study - Germany
•280,000 Jobs in RE Industry 30000
Cumulative Installed Wind Capcity (MW)
•Nearly 25,000MW of Wind 25000
Capacity 20000
15000
•5GW of Solar PV Installed 10000
•Advanced Biofuels Industry 5000
0
•Built Extensive Manufacturing
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Base
•Germany did more Solar PV on
Cumulative Installed PV Capacity (MW)
Barns and Farms in 2008, than all 6000
of US combined! 5000
•Cost to Average German 4000
3000
household $1.50/mo 2000
1000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
8. Case Study - Vermont
•Technology Differentiated FIT passed 2009
•Single Price for Solar $.30/kwh
•50MW Program Cap
•12.5MW PV Cap
•170+MW Solar PV applied for on the first day
9. Waves of New Solar Coming - Hawaii
•PUC rules in favor of feed-in tariffs 2009
•Technology differentiation
•Size differentiation
•Prices based on cost of generation
•Limited project size (5 MW)
•Final rules imminent
10. United States Landscape
Feed-in Tariff
Passed
“FITINO”
FIT Initiative died in
Legislature in 2009