TOPIC 'Solar Energy' on Dec 09, 2008 (CET)
Feed-in Solar Tariffs Not A Good Option Everywhere
In Germany, feed-in tariffs on rooftop solar panels are encouraging solar use. The tariff arranges a price, or rate, for all electricity fed into the electric grid by solar installations. This incentive has worked as a good inducement for homes and businesses to install photovoltaic cells, or panels, on roofs. This methodology offers motivation to building owners to invest in this environmentally friendly technology. In Germany, this methodology has been a significant benefit in encouraging more solar use.
The disadvantage to feed-in solar tariffs is the cost can end up being passed on to the customer. Ontario, Canada, tried a similar method and promoted a tariff that paid four times more for solar use than normal electricity. This inducement failed to capture the attention of small-scale Ontario developers. If the Ontario Power Authority raises the price any more, rates for consumers would surely increase and now is not the time for that addition to consumers’ monthly expenses.
In California, solar energy is already subsidized and consumers are already paying higher rates, so it is believed that a further increase would be seen as increasingly unfair and unnecessary. An organization in California, known as TURN, has proposed a new strategy in solar investment. The group helped pass legislation requiring utilities operating in California to meet 20 percent of their energy needs through renewable energy solutions AND include protection for consumers against extremely high prices, legislating to ensure that renewable energy options are procured at the best possible price.
The California Solar Initiative didn’t do consumers any favors when it provided financing for solar projects by raising utility rates, thus passing the cost onto consumers who are already over-burdened with bills. This initiative also focused on commercial developments and large businesses (80 percent), rather than residential users, thereby asking the average consumer to additionally contribute to this cost.
The City of Berkeley, California, has a solution of its own to offer – that homeowners be allowed to pursue “special tax financing” for installing a solar energy system. Also, included in the recently passed U.S. “rescue” package were plans addressing tax benefits for residential users of solar systems, not just commercial users. This should help spur development somewhat.
Sherry Irvin
on behalf of the
BascoTec Internet Limited
Technologie Park 13
33100 Paderborn
Germany
