Bakers For Pickens Plan

Comment

Comment by David Baker on July 27, 2008 at 6:46pm

Joe Citizen puts a solar PV array on his property and creates twice as much electricity as he uses. Is he compensated?

Net Metering (which we have in San Diego) is a system where the producer is compensated for the amount of electricity they produce up to the amount they use. Any additional energy created is a windfall (albeit small) for the utility company.

The Feed-In Tariff (FIT), sometimes referred to in the U.S. as the Advanced Renewable Tariff (ART), is fundamentally a mechanism (law) requiring utility companies to pay the consumer for any electricity they add to the grid (from renewable sources). Under this system Joe Citizen (above example) would get free home electricity plus compensation for the additional electricity he created.

Which of these two legal systems would have the greatest inspiration on homeowners and commercial building owners to install Alt Energy on their property?

Renewable Energy Jobs and Security Act
http://www.govtrack.us/congress/bill.xpd?bill=h110-6401


House Democrats Introduce National Feed-in Tariff for Renewable Energy Projects Timothy B. Hurst
http://redgreenandblue.org/2008/06/27/house-democrats-introduce-national-feed-in-tariff-for-renewable-energy/

Representatives Jay Inslee (D-WA), Bill Delahunt (D-MA), Jim McDermott (D-WA), and Mike Honda (D-CA) introduced landmark legislation [PDF] on Thursday that will provide security for investments in the renewable-energy sector by guaranteeing rates for renewable-energy generation. This policy mechanism, also known as a national feed-in tariff, may be the single most effective tool to expand renewable energy development that we know of. Feed-in tariffs have been introduced in several U.S. states, but none have the bills have been passed into law.
The International Energy Agency, the European Commission and the United Kingdom’s Stern Review have determined that feed-in tariff policies in Germany, Spain, France and other European Union countries have achieved larger renewable energy deployment at lower costs, compared with policies in other European Union countries.
The legislation has two principle titles. The first would streamline interconnection standards and the patchwork of policies currently governing interconnection. The second title addresses the actual process of setting of renewable energy tariffs, and what would qualify. This bill would not only apply to the mom and pop backyard wind turbines, and rooftop solar - the tariff extends to projects as large as 20 megawatts!
As it is currently written, the tariff would be revisited no later than one year after it is enacted and every two years thereafter, thus incorporating a ratcheting mechanism that allows the rate-setters to adjust for technological advances, bottlenecks in supply chains, changes in demand, and other unforeseen stimuli that might necessitate a rate revision.
According to a statement released by the bill’s co-sponsors:
“Enacting a federal renewable-energy payments policy would streamline what could become a patchwork regulatory structure and an unstable investment climate for the U.S. domestic renewable energy market. It also would complement incentives for renewable-energy deployment, such as existing federal-tax credits as well as proposed plans to cap carbon emissions and set federal renewable-electricity requirements, among others.”

Comment by David Baker on July 27, 2008 at 2:35pm

Hi All,
I began seeing so many Bakers here, I thought it'd be nice to have a Group Page for us.