feed-in tariffs

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Feed-in Tariffs: The Most Effective Renewable Energy Policy on the PlanetRichard Deutschmann, VP Policy & Market Development at groSolar, starts off by discussing America's over dependency on fossil-fuels for energy generation and why solar energy is the most viable resource for energy generation for our country. He promotes the adoption of feed-in tariffs by the federal and local governments, arguing that this democratic policy will enable any citizen to start generating electricity, while reducing their energy costs and environmental impact. He demonstrates how well this policy worked in Germany and argues the same can be done in the US. This presentation was given December 4, 2009 at the Solar Energy Focus Conference: Fall 2009 hosted by the Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) in Gaithersburg, MD. To learn more please visit:www.mdvseia.camp7.org

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  • 1. Feed-in Tariffs The Most Effective RenewableEnergy Policy on the Planet Richard DeutschmannVP Policy & Market Development groSolar 1-800-GOSOLARGrosolar.com

2. Solar Resources Germany vs. US 3. World Energy Resources 4. Feed-in-Tariff - Definition Standard, long term contracts for Renewable Electricity generated(20-25 years typical) Priority access to the grid, simplified interconnection Prices Differentiated By technology, size, application, and resource intensity Prices set by generation cost plus reasonable profit (5-8%) Periodic Review (every ~2 years) with stepdowns 5. Benefits of Feed-in Tariffs Most democratic: Everyone can be an energy producer. Stimulates local banking to finance projects Creates local jobs faster than other policies Helps governments meet RPS and carbon goals Increases our energy and national security- less dependence on foreign sources of fuels- decentralizes our power plants & electrical grids Reduces transmission needs, in case of DG Displaces expensive peaking power 6. History of Feed-in Tariffs FITs originated after 1973 oil crisis PURPA emerged in US in 1978 Portugal creates premium tariff for RE, 1988 Denmark soon followed Germany creates first modern FIT in early 1990s Germany now the world leader in RE production FITs now the policy of choice in more than 45 countries Ontario first North American fully differentiated FIT, 2009 7. Case Study - Germany 280,000 Jobs in RE Industry30000 Cumulative Installed Wind Capcity (MW) Nearly 25,000MW of Wind25000 Capacity20000150005GW of Solar PV Installed10000 Advanced Biofuels Industry5000 0Built Extensive Manufacturing 19911992199319941995 1996 19971998 19992000 20012002 20032004 20052006 20072008 Base Germany did more Solar PV on Cumulative Installed PV Capacity (MW) Barns and Farms in 2008, than all 6000of US combined! 5000Cost to Average German 40003000 household $1.50/mo2000100002000 20012002 2003 20042005200620072008 8. Case Study - Vermont Technology Differentiated FIT passed 2009 Single Price for Solar $.30/kwh 50MW Program Cap 12.5MW PV Cap 170+MW Solar PV applied for on the first day 9. Waves of New Solar Coming - Hawaii PUC rules in favor of feed-in tariffs 2009 Technology differentiation Size differentiation Prices based on cost of generation Limited project size (5 MW) Final rules imminent 10. United States Landscape Feed-in Tariff PassedFITINO FIT Initiative died in Legislature in 2009 11. More Information AllianceforRenewableEnergy.or g Wind-works.org WorldFutureCouncil.org 12. Credits Thanks to: Paul Gipe/Wind-Works Wilson Rickerson/Meister Consultants Lois Barber/Alliance for Renewable Energy 13. Richard Deutschmann VP Policy & Market Development richard.deutschmann@grosolar.com 1-800-GOSOLAR grosolar.com

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