ABOUT THE (NON-EXXISTENT) U.S. SOLAR F-I-T

What Is Holding Back Solar Feed-In-Tariff Programs In The U.S. Market?

21 June 2012 (Solar Industry)

“Feed-in tariffs (FITs) have spurred the installation of more than three-quarters of global solar capacity. Germany's FIT - perhaps one of the best-known programs - has led to the development of more than 50,000 MW of solar power and wind power domestically since its inception in 1990…[but] FITs continue to fail to make inroads in the U.S…[which] instead relies on a patchwork of often inconsistent federal and state incentives…

[“…U.S. CLEAN Programs; Where Are We Now? What Have We Learned?] by John Farrell, senior energy researcher at the Institute for Local Self-Reliance (ILSR), recaps the frustrating path of the U.S.' FIT programs and makes recommendations…FIT programs - generally branded as Clean Local Energy Accessible Now (CLEAN) contracts in the U.S. - currently exist in 14 states. However, installed capacity under all of the programs totals just 132 MW…[and could only reach] 1% or less of each jurisdiction's total electricity scales. In comparison, the cap-less German [FIT] market already has allowed at least 20% electricity…”

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“Another shortcoming of the U.S.' CLEAN programs may be their emphasis on large-scale solar projects. Unlike in Germany, where individuals own 40% of the current renewable energy market, few U.S. programs allow participation by owners of residential PV arrays…The Sacramento Municipal Utility District's (SMUD) program, for instance, leads the U.S. in terms of installed CLEAN capacity, with two-thirds of the country's total, but…[a] single 30 MW array took up half of SMUD's capacity…The ILSR believes that small-scale, locally owned PV projects represent a more effective use…

“…[T]he German government's ongoing management of its FIT program has not been without controversy. Last year's boom in PV installations, followed by an announcement of drastic FIT rate cuts, resulted in political wrangling and negotiations that have yet to be resolved…[and] the U.S.' electricity market and regulatory environment differ from Germany's…[but] the U.S. can learn…important FIT/CLEAN program management lessons from Germany [especially about price differentiation]…”

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