Follow us on Twitter Follow us on Facebook View our linked in profile View our RSS feeds
Your daily source for sustainable business & sustainable investor news.

(view sample issue)

This is an archived story. The information and any links may no longer be accurate.

08/04/2009 12:31 PM     print story email story  

U.S. Representatives Working on Feed-in Tariff News

Representatives Jay Inslee of Washington and Bill Delahunt of Massachusetts plan to introduce a bill in the U.S. House of Representatives that would create a feed-in tariff for renewable energy. 

A feed-in tariff would require utility companies to purchase renewable power from small-scale developers at a rate that provides a guaranteed premium above the cost of production. 

Germany's solar feed-in tariff has been largely responsible for the country's rise to prominence in the solar industry and some states and municipalities are introducing their own feed in tariffs. 

Inslee proposed a similar bill in the House last year.

"We have some brilliant Americans with brilliant business plans with brilliant technologies, but they don't have financing," Inslee said at a briefing last week. "The charm of the feed-in tariff is solid, take-it-to-the-bank security and confidence for the investing community." 

Feed-in tariffs have the potential to provide broader support to renewable energy development than a renewable energy standard (RES), such as the one proposed in the Waxman-Markey climate bill. 

An RES, which requires utilities to provide a certain percentage of renewable power, encourages those companies to pursue the cheapest renewable energy sources.

A feed-in tariff could provide support to all forms of renewable energy in the short term, allowing them to reach economies of scale, thereby driving down prices. 

China recently announced a feed-in tariff for wind power. And California's Sacramento Municipal Utility District (SMUD) has established a feed-in tariff (FIT) that will go into effect next January. 

Reader Comments (0)

Add Your Comment

(Use any name, your real name is not required)
Type the characters you see in the picture below.

home |about us |contact us |advertise |feeds |privacy policy |disclosure

Compare Green Cars   |   Find Alternative Fueling Stations