Gross Feed In Tariff to Help Environment and Solar Industry
The more I think about the state of solar electricity generation and government support the more I understand that gross metered feed in tariffs are a really powerful means to increase the uptake of solar panels amongst the public.
The current scheme of RECS is severely flawed as it doesn’t really increase the uptake of solar power in Australia. Currently mostly people that are already interested in solar power generation are installing photo voltaic panels and using the RECS to help with the upfront cost. The problem with this is that the RECS embody all the environmental benefits for the next 15 years and once sold, the owner of the solar system really can not claim any environmental benefits for the system.
Basically by selling the RECS the owner has sold his benefit most likely to a coal or gas powered electricity provider and as such all the electricity produced by the solar system for the next 15 years carries all the green house gases and other environmental nasties (coal sludge anyone?) that the power station is off-setting when it purchased the RECS.
The current plan of the government to offer 5 times the amount of RECS form the middle of the year only makes this situation worse as any solar electricity system is still producing the same amount of clean energy but when selling the RECS the power stations actually get to claim 5 times the offset for their nasties than is actually being offset.
Looking at it in this way, really the only one benefiting from the new scheme are the big power generators. The public and the environment will suffer as a result of the introduction of these “phantom” RECS.
A gross metered feed in tariff on the other hand measures the actual amount of clean energy being produced and by having a gross metered feed in tariff a whole new sector of clients will be attracted to solar electricity generation. A gross feed in tariff makes it a lot easier to look at solar electricity generation from an investment perspective as it is relatively easy to work out how long the pay back period would be and what return on investment would be possible.
So please, anyone caring about the enviroment and wishing to see a dramatic increasee in power generation from renewable sources should sign the petition at http://www.feedintariff.com.au/ to show the government that we do care and that we want them to fulfill on their election promise to look after the environment.
Mark and Rosalba are building a strawbale house!
February 6th, 2009 at 6:21
I have just attended a meeting with the Gainseville, Florida regional utility (GRU). They are instituting a Feed In Tariff in March of this year. They have allocated 4MWH for the first year of this program.
My company, Pacific Edison has contracted with a major mall in Gainseville to install 200,000 sq ft on their roof. We will rent this space and be paid from the GRU .32 a kwh.
Our return on this major investment will be 8 to 10 years, but the .32 continues for 20 years. Great program and we look forward to expanding the FIT programs throughout the state of Florida and beyond in the U.S.
February 6th, 2009 at 7:39
@Craig Jacobs: Thanks for reporting back with a real investment scenario that has become feasible due to the introduction of a gross feed in tariff.
It’s just awesome what is possible.