31 Oct '12, 3pm

Silent Surcharges: Are All-Energy FITs a Good Idea?

Silent Surcharges: Are All-Energy FITs a Good Idea?

There are different opinions about the cost of renewable energy. Some people still try to say solar is too expensive. But one thing is clear. All the figures are open for anyone to see. Everybody knows exactly how much is paid over the feed-in tariff to get solar energy deployed. In contrast, the classic model of financing was: Add up whatever cost the utility had for their equipment, then add on some profit, and then fix electricity prices (requiring approval by a regulator) at a level resulting in that profit. What exactly is the difference in the solar energy feed-in tariffs? For one, the feed-in tariffs are reduced all the time, since costs go down. Those costs go down as a consequence of the feed-in tariffs, but they go down. A lot. In contrast, the costs of fossil fuel or nuclear have not gone down. Next, the costs were never disclosed in the same way to the consumer...

Full article: http://www.renewableenergyworld.com/rea/news/article/2012...

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