My Views About Feed In Tariffs

Q: At our last Alternative Energy meetup group, we had quite a discussion around feed in tariffs, specifically for solar PV systems. The main question was around "gross feed in" or "net feed in". Gross feed means that each kW of energy produced will be paid out at the feed in tariff incentive. Net feed means that the cumulative excess energy produced (energy fed back to the grid at any given time) will be paid out at the feed in tariff incentive. At our meetup, there was some debate over which feed in tariff was better. Here are my thoughts: -A net feed in tariff would not benefit users who install smaller systems and cannot offset their phantom loads. Would also discourage incentives from users who cannot shed power loads during the day (i.e. small businesses and commercial). -A gross feed in tariff does not favour energy efficiency and load shedding. I believe that to satisfy both disadvantages, and if a feed in tariff system were ever to be proposed in Alberta, it should be a hybrid system. Give the user a choice between signing up for a gross feed in tariff system that pays out a lower $/kWh amount than the net feed in tariff system that pays out a higher $/kWh amount. That would still provide an incentive for folks to consider energy efficiency and load shedding options and attempt to sign up for the net feed in tariff. For all others who cannot make enough power to have significant net power to the grid, then the gross feed in tariff option would still provide an incentive for the "green energy" production. The other factor that needs to be considered is time of day metering. Solar PV systems are an excellent peak power producing system. Typically, power demand is at its highest during the day on hot sunny days when HVAC requirements are demanding and power loads on the grid are elevated. PV systems coincidentally provide lots of power during these same times. If time of day metering was adopted in Alberta, the cost of electricity would already be paid for at a premium when solar PV is getting maximum production. That higher cost of electricity would offset the premium or "feed in tariff" being applied as the incentive to bring more PV solar online. Anyhow, I put a lot of thought into feed in tariffs after our meeting. I'd be interested in hearing what others think about the hybrid solution. One last point is around feed in tariff versus tax incentive or other ways to provide incentive upfront by offsetting part of the upfront costs. I once heard that it was better to provide incentives based on performance than based on a purchased/installation cost. That way, folks with a well designed system are better rewarded, and it puts more thought upfront into maximizing the benefit of whatever system is installed. The tax incentive method would likely level the playing field for all, as depending on geographical area and many other factors, no two system will be able to produce the same amount of energy unless given the same access to the sun.

A: Hi Kevin, Good summary of the discussion from Saturday. I advocate a decentralized approach to energy production and rolling energy management down to an individual level. In that context I favor net metering as I feel it would make the individual homeowner / business-owner more aware, more involved and ultimately take more responsibility for their energy generation and usage. On the financial support aspect, the upfront capital cost is the biggest challenge therefore I suggest one-time grants upon installation. Once the system is operating, the owner saves on his monthly utility bills every month.

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