Feedin Tariff

December 27, 2007

The term Feedin Tariff refers to a premium paid for your home generated, renewable electricity that is returned to the grid. The premiums are generally quite generous.

Feedin tariffs began in the USA in 1978, however the model used in Germany in since 1990 and modified in 2000 has proven to be the most effective at boosting investment in renewable energy sources.

“An outstanding example of a successful FEEDIN TARIFF is that of Spain — the generator of solar or wind energy gets paid 5x the base rate of fossil-generated electricity,for up to 25 years, after which the rate drops by 20% for the life of the system. At present this is around 43 euro cents/kwhr., if I recall correctly. With a system size cap at 2MW, this encourages rather large, utility-scale systems. The result has been a fulminating boom in solar energy installation in Spain.”

Feedin Tariffs should not be confused with Net Metering. “Net metering simply means returning your unused home-generated electricity to the grid for CREDIT equal to either a)the retail cost of electricity, or b) the avoided cost of electricity, in your area. 39 US states make net metering mandatory.”

Lets see if Australia can offer good incentives like Spain.

Website: Feedin Tariff at Wiki & Renewableenergyaccess (see comments)



Written by Craig · Filed Under Energy, Political 

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