Saturday, 17th of May 2008
Saturday, 17th of May 2008
"feed-in tarrif" — 3 posts
It's widely understood that Germany jumped to the front of the line in solar power deployments by using aggresive feed-in tariffs to promote solar investment. Rates paid for solar electricity are substantially higher than retail electricity rates - not surprisingly, German energy producers and consumers alike responded with unprecedented new investment in solar power systems. Now, in large part due to their success, Germany is reducing the feed-in rates paid for solar electricity. Euros saved will be reallocated to wind power, which will have its feed-in rates increased to give the wind business a small kick in the rear. A goverment that uses its policies to promote renewable energy rather than persistently prop up legacy energy industry... imagine that!
Everybody points to Germany as an example of how far solar energy can go given the proper incentives from goverment. Net-metering is like putting the key in the ignition, but feed-in tariffs really seem to put the petal to the metal. Of course, in Germany the rates for, er, fed-in electricity from solar energy systems are large multiples of retail costs for electricity. Eugene, OR has established feed-in tariffs, or something akin to it, purchasing electricity from customer with solar generation systems on long term contract. Details are few in this story, but the implication - that feed-in tariffs are perhaps not that foreign after all - is encouraging.

If there's one thing that so-called Big Box Stores have in abundance, it's roof space. So it's fitting slash appropriate that more of these "big box" retailers are looking placing solar PV generation systems on their robust roofts. There was last week's Kohl's Department Stores accouncement with SunEdison. Wal-Mart is ever so secretly evaluating solar energy generation. Now Target has begun to roll solar PV onto several of its California stores. A store in Stockton, CA, is used as an example; it's not made explicit the power output of the system, but one can estimate from the description that this store has a 300-350kW installation. Interestingly, it also mentions that only 40% of the roof is used. There're a number of reasons that they didn't build a bigger system - perhaps 300-350kW completely zeros out electricity costs for that store. That case would highlight the limitations of net-metering; why can't Target build a 700kW system on a store in sunny Stockton and use the excess generation to offset electricity usage at other locations? Feed-in tarrifts would allow them to do just that, using dollars from generation at one store to pay for usage at other stores.

Target has a good history of social responsibility - known for giving back to their communities in a more significant way than some other big box giants - so it's a bit more believable to hear them say " "Part of Target's DNA is our commitment to the community, and certainly that ties into the environment as well..."; but there is clearly an economic component that Target, Wal-Mart, Kohl's and others are beginning to catch on to.