Comments on: US adoption of solar feed-in tariffs ‘long overdue’ http://www.brighterenergy.org/14256/news/solar/us-adoption-of-solar-feed-in-tariffs-long-overdue/ News and Information on Cleaner Energy in the United States Thu, 02 Feb 2012 20:57:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Longwatcherhttp://www.brighterenergy.org/14256/news/solar/us-adoption-of-solar-feed-in-tariffs-long-overdue/comment-page-1/#comment-828 Longwatcher Sat, 07 Aug 2010 02:55:03 +0000 http://www.brighterenergy.org/?p=14256#comment-828 As I understand them Feed-in Tariffs are essentially a tax that will continue forever because it is set up like a tax. While SRECs are an incentive that will eventually fade as solar power reaches a certain level. thus I prefer SRECs. But then maybe I don't understand the FiT system. As I understand them Feed-in Tariffs are essentially a tax that will continue forever because it is set up like a tax. While SRECs are an incentive that will eventually fade as solar power reaches a certain level. thus I prefer SRECs. But then maybe I don't understand the FiT system.

]]> By: SRECTradehttp://www.brighterenergy.org/14256/news/solar/us-adoption-of-solar-feed-in-tariffs-long-overdue/comment-page-1/#comment-829 SRECTrade Tue, 03 Aug 2010 07:31:58 +0000 http://www.brighterenergy.org/?p=14256#comment-829 A feed-in tariff model would certainly make things easier for solar developers, but the reality is that most of the major solar states have created laws in favor of a Renewable Energy Certificate scheme. These include most of the Mid-Atlantic states, Massachusetts, California and Texas, with legislation being considered in Connecticut and New York (<a href="http://www.srectrade.com/background.php" rel="nofollow">http://www.srectrade.com/background.php</a>). The whole point of a Solar Renewable Energy Certificate (SREC) program is to develop a market based incentive for solar. Solar credit values will vary based on the ability of the industry to keep up with state supply levels. In the case of New Jersey, the program is actually working as intended. SREC prices are trading high because the state is well behind the solar targets set forth in the state renewable portfolio standard. In a functional market, a short supply leads to higher prices and a larger incentive to close the gap. As the industry grows to meet the demand, the prices will drop. At some point the price will settle at an equilibrium that enables the state to meet its goals at the lowest cost possible - in the meantime, the state will profit from the collection of fines from electricity suppliers. The appeal of the solar credit program over alternatives like a feed-in tariff is this market-based mechanism. The solar industry in Spain is currently dealing with concerns that the government may try to reduce the subsidy rates in existing contracts in order to bring electricity prices down. A long-term fixed subsidy may be easier for project developers seeking financing, but it does not account for changes over time that drive the economics of solar and the electricity markets in general. A market-based mechanism keeps pace with a dynamic industry. As a result, the subsidy (and its affect on electricity prices) stays in touch with current trends in material costs and substitute technologies. This is what ultimately leads to stability in the solar industry. It certainly trumps the boom and bust cycles experienced in states like Connecticut and Massachusetts in recent years when the money for rebates and other subsidies ran out. The Renewable Energy Certificate programs may experience growing pains, but ultimately, a solar economy based on subsidies that track with the rapid changes in this dynamic industry will ensure that society is not over-burdened. In turn, the subsidy will remain relevant and the industry will see some real stability. -Brad Bowery, CEO, SRECTrade A feed-in tariff model would certainly make things easier for solar developers, but the reality is that most of the major solar states have created laws in favor of a Renewable Energy Certificate scheme. These include most of the Mid-Atlantic states, Massachusetts, California and Texas, with legislation being considered in Connecticut and New York (http://www.srectrade.com/background.php). The whole point of a Solar Renewable Energy Certificate (SREC) program is to develop a market based incentive for solar. Solar credit values will vary based on the ability of the industry to keep up with state supply levels. In the case of New Jersey, the program is actually working as intended. SREC prices are trading high because the state is well behind the solar targets set forth in the state renewable portfolio standard. In a functional market, a short supply leads to higher prices and a larger incentive to close the gap. As the industry grows to meet the demand, the prices will drop. At some point the price will settle at an equilibrium that enables the state to meet its goals at the lowest cost possible – in the meantime, the state will profit from the collection of fines from electricity suppliers. The appeal of the solar credit program over alternatives like a feed-in tariff is this market-based mechanism. The solar industry in Spain is currently dealing with concerns that the government may try to reduce the subsidy rates in existing contracts in order to bring electricity prices down. A long-term fixed subsidy may be easier for project developers seeking financing, but it does not account for changes over time that drive the economics of solar and the electricity markets in general. A market-based mechanism keeps pace with a dynamic industry. As a result, the subsidy (and its affect on electricity prices) stays in touch with current trends in material costs and substitute technologies. This is what ultimately leads to stability in the solar industry. It certainly trumps the boom and bust cycles experienced in states like Connecticut and Massachusetts in recent years when the money for rebates and other subsidies ran out. The Renewable Energy Certificate programs may experience growing pains, but ultimately, a solar economy based on subsidies that track with the rapid changes in this dynamic industry will ensure that society is not over-burdened. In turn, the subsidy will remain relevant and the industry will see some real stability. -Brad Bowery, CEO, SRECTrade

]]> By: Jonathan Colehttp://www.brighterenergy.org/14256/news/solar/us-adoption-of-solar-feed-in-tariffs-long-overdue/comment-page-1/#comment-795 Jonathan Cole Wed, 28 Jul 2010 07:23:32 +0000 http://www.brighterenergy.org/?p=14256#comment-795 Feed in tariffs (FIT) are best used in places with with high rates of solar insolation. Why? Because we need to encourage the installation of solar where it will yield the greatest fossil fuel reductions. Northern latitudes like Germany would tend to put out much less energy per peak watt installed than say, Spain.<br><br>PACE programs like that demonstrated in Berkeley, California are a much better way to go, because they don't distort the markets so much, nor do they force non-beneficiaries from having to foot the bill. <br><br>Solar is already cost-effective when combined with efficient equipment and a non-wasteful energy-use strategy. We have to quit this idea that government mandates can solve problems without introducing new ones. Unfortunately FITs may create more problems than they solve.<br><br>For more info see my web log <a href="http://lightontheearth.blogspot.com/" rel="nofollow">http://lightontheearth.blogspot.com/</a> Feed in tariffs (FIT) are best used in places with with high rates of solar insolation. Why? Because we need to encourage the installation of solar where it will yield the greatest fossil fuel reductions. Northern latitudes like Germany would tend to put out much less energy per peak watt installed than say, Spain.

PACE programs like that demonstrated in Berkeley, California are a much better way to go, because they don't distort the markets so much, nor do they force non-beneficiaries from having to foot the bill.

Solar is already cost-effective when combined with efficient equipment and a non-wasteful energy-use strategy. We have to quit this idea that government mandates can solve problems without introducing new ones. Unfortunately FITs may create more problems than they solve.

For more info see my web log http://lightontheearth.blogspot.com/

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]]> By: Use solar energy to reduce pressure on national grid: Dr Atiur – The New Nation « Charlotte Insurancehttp://www.brighterenergy.org/14256/news/solar/us-adoption-of-solar-feed-in-tariffs-long-overdue/comment-page-1/#comment-787 Use solar energy to reduce pressure on national grid: Dr Atiur – The New Nation « Charlotte Insurance Mon, 26 Jul 2010 19:30:31 +0000 http://www.brighterenergy.org/?p=14256#comment-787 [...] grid and …Solar Energy's 33 Percent Annual Growth will Accel…Cleantech Blog (blog)US adoption of solar feed-in tariffs 'long overdue'BrighterEnergy.orgSolar Panels – New Market Report PublishedOfficialWire (press [...] [...] grid and …Solar Energy's 33 Percent Annual Growth will Accel…Cleantech Blog (blog)US adoption of solar feed-in tariffs 'long overdue'BrighterEnergy.orgSolar Panels – New Market Report PublishedOfficialWire (press [...]

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