Posted on December 4, 2008 by Brad Mondschein

Gainesville Utility Sets Feed-In Tariff Rate

As we reported earlier on this blog, the Gainesville Regional Utilities has proposed to implement a feed-in tariff regime to spur the development of distributed generation and net metering.  The GRU has now released its proposed rate schedule.  The rates are extremely favorable for the development of distributed generation and net metering.  Depending on the success of the program, this concept could be a model for the rest of the country.  The feed-in tariff concept has already proven successful in Germany where 14% of the country's electricity comes from renewable sources.

GRU is seeking have 3% of its power come from renewable resources in five years.  The feed-in tariff would require a customer to pay $5.50 per month for having access to a power line.  GRU will pay a homeowner 26 cents per kWh, which is more than double what the current net metering price provides.  The price will fall to 25 cents in 2011 and 19 cents in 2016 under the assumption that the cost of solar panels should also decline.

It is expected that the cost of the program will increase rates on homeowners by approximately $2 per month.

Tags: , , , ,
Posted on October 16, 2008 by Brad Mondschein

Gainesville, Florida Proposes Feed-In Tariff Regime For Net Metering

Gainseville Regional Utilities (GRU) outlined a plan to institute a "feed-in" tariff for solar panel installations.  A feed-in tariff requires a utility to purchase all of the energy produced by a project at a set rate for term of years.  GRU is proposing an above-market rate for 20 years.  The program would eliminate the need for rebates, incentives and net-metering.  The GRU was not entirely clear yet on the overall cost of the proposal to customers.  However, the proposal would be funded through an increase in the fuel adjustment rate.  GRU stated that for every 1 MW of solar installed, the fuel adjustment rate would increase by less than 1%. 

The GRU's initiative was inspired by its assistant general manager's fact-finding trip to Germany where solar installations have blossomed.  The abiluty of the GRU to undertake this program could be a model for other utilities and for the federal government when they look at structuring programs.

Tags: , , ,