| A feed-in tariff is a premium rate paid for electricity | | | | elements, which will determine the success or failure |
| fed back into the electricity grid from a designated | | | | of a feed-in mechanism. |
| renewable electricity generation source like a rooftop | | | | An effective scheme would involve a feed-in tariff of |
| solar power system or wind turbine. At present, | | | | at least 4 times the market rate, paid on the entire |
| feed-in tariff regulations for renewable energy exist | | | | output of a solar power system (via gross |
| in over 40 countries around the world. | | | | production metering), and offered for at least 15 |
| Germany sets the feed in tariff example | | | | years. Only a gross feed-in tariff set at or above |
| Possibly the most successful feed-in tariff laws would | | | | these levels would adequately reward the adoption |
| be those introduced in Germany over the past 15 | | | | of solar PV for the range of environmental, social and |
| years. In 1991 the German government introduced | | | | economic benefits arising from this technology, and |
| the Electricity Feed Act, legally regulating the feed-in | | | | encourage the uptake at sufficient levels to achieve |
| to the grid of electricity generated from renewable | | | | the policy goals. |
| resources such as solar power. This Act required | | | | When Germany introduced gross feed-in tariffs in |
| utility companies to purchase electricity generated | | | | 2000 it doubled the amount of electricity generated |
| from renewable resources such as domestic solar | | | | from renewable energy sources and adjusted its |
| power systems at set rates (feed-in tariffs). | | | | 2010 target of 12.5% of total energy consumption. It |
| The scheme was expanded and enhanced in 2000, | | | | is now three years ahead of schedule. |
| and has been responsible for the dramatic growth in | | | | As a consequence of this success, Germany recently |
| Germany's renewable energy market, particularly the | | | | increased its renewable energy target to 27% of all |
| solar photovoltaic industry. In the five years from | | | | electricity generation by 2020. Also the gross feed-in |
| 2000, the quantity of electricity fed into the grid | | | | tariff has created nearly 250,000 new jobs in the |
| from eligible sources has more than doubled, with a | | | | renewable energy industry, which will soon surpass |
| seven-fold increase in installed solar photovoltaic (PV) | | | | the car industry as that nation's number one |
| capacity to over 1,500 MW by the end of 2005. | | | | employer. |
| Why do we need feed-in tariffs? | | | | The German solar power sector is now creating |
| Residential solar power is somewhat disadvantaged | | | | three times the number of jobs per installed |
| due to the high entry costs. The market fails to take | | | | megawatt as the coal fired electricity industry - all of |
| into account the true value and many benefits to the | | | | this in a country receiving much less sunshine than |
| electricity network which arise from the adoption of | | | | other parts of the world not participating in similar |
| renewable energy technologies embedded within the | | | | programs, or just engaging in minimal participation. |
| electricity grid. | | | | International experience tells us that gross feed-in |
| Solar PV, like other renewable energy sources, | | | | tariffs can be very successful in stimulating the |
| provide environmental benefits through reduced | | | | uptake of renewable energy, addressing climate |
| greenhouse gas emissions and social benefits through | | | | change and creating strong local industries and |
| industry development and job creation - for example | | | | employment. |
| through the installation of grid connect solar systems, | | | | Tariff availability |
| each with related economic benefit. | | | | As mentioned, some 40 countries throughout the |
| A feed-in tariff redresses these systemic market | | | | world now have some sort of feed in tariff incentive |
| failures and rewards solar electric generation for its | | | | in place. In order to determine if feed in tariffs are |
| true value to the electricity market and wider | | | | available to you, contact your local energy authority |
| society, by providing a financial incentive for the | | | | for further details. |
| adoption of renewable energy. | | | | How you can help |
| Design of a feed-in tariff scheme | | | | If feed in tariffs aren't available in your area and you |
| For a feed-in tariff to be effective, it is essential that | | | | care about fighting climate change, cutting |
| the tariff offered is designed in a way as to | | | | greenhouse gas emissions and encouraging our |
| adequately reward solar PV proponents. There are | | | | domestic renewable energy industry; then please |
| three key elements of a feed-in mechanism which | | | | write to your local elected representative requesting |
| need to be considered: The price level of the tariff; | | | | they consider gross feed-in tariffs as the most |
| the means of metering; and the duration of the | | | | effective way to increase solar power use. |
| scheme. It is the proper combination of these three | | | | |