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Reply #11: A feed in tariff [View All]

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kristopher Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 05:03 AM
Response to Reply #10
11. A feed in tariff
Edited on Fri May-01-09 05:13 AM by kristopher
is a flat fee paid for energy from a given source that "feeds in" to the grid. It is set high as an incentive to develop a desired technology. It doesn't achieve the "least cost" path that economists love, but it is extremely effective at spurring development. In many cases of net metering (selling excess generation to the utility) the price is so low as to make it virtually meaningless. I think what you are proposing is, therefore, a feed-in tariff as that concerns itself with more than net metering.

I understand your desire for an overarching mandate but there doesn't exist a regulatory mechanism by which such a mandate can be enforced. States are pretty zealous when it comes to guarding their territory. The feds can set up a program where they pay the homeowner directly, as they do with the Production Tax Credit for large scale producers, but a program like that would come with extremely high management costs as it would require tracking the relatively small amounts involved from each homeowner. The concept of the smart grid is centered on managing small scale transfers of power. As it stands now, as a routine matter the utilities don't even notice sources of generation that are below the megawatt scale.

The main tool the feds have is a federal Renewable Portfolio Standard. If you aren't familiar with that, check wiki, I'm sure they describe it well. My advice is to be patient a little longer while the infrastructure and manufacturing catch up to your dreams. It shouldn't be much longer.

Lastly, have you thought about leasing the systems? It reduces up front costs and has several profit angles that straight up purchases don't offer. You'd need a source of venture capital, which I don't think would be that hard to find.

PM me if you'd like.
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