Many professionals and solar energy representatives within the solar industry are calling for Feed-in Tariffs (FiT) to help accelerate renewable solar energy in the United States. Referencing rapidly growing solar markets in countries like Germany and Italy, these professionals are calling for Advanced FiT programs to stimulate state businesses and create jobs in solar energy.
“There is strong evidence that Advanced Feed-in Tariff programs that exhibit transparency, longevity and certainty can clearly reduce project risk, allow renewable energy developers to obtain a lower cost of capital, and create new jobs,” says Mark Fulton, Global Head of Climate Change Investment Research for DB Climate Change Advisors.”
FiT’s provide not only grid access for solar energy producers, but also long term contracts and purchasing prices so that those creating solar energy will be able to do so with a decreased financial risk. State Solar Energy Industries Association representatives from California, Oregon, New Jersey, Colorado, and Texas argue that FiT’s are more effective than incentives based on market commodities, and promote the implementation of FiT’s with other policies in place. Similar programs such as CPS Energy’s “Solartricity” program in San Antonio are already providing contracts for clean solar energy.
“Oregon launched its version of the FiT on July 1, and the initial allocation was fully subscribed in less than 15 minutes,” summarizes Glenn Montgomery, Executive Director of OSEIA (Oregon). “The demand is clearly present.”