[Sosfbay-discuss] what is feed in tariff?

[Jim Doyle]

Why is the renewable energy market in Gainesville booming while it's
collapsing elsewhere in the country?

The answer boils down to policy. In early February, the city became the
first in the nation to adopt a "feed-in tariff" -- a clunky and 
un-descriptive
name for a bold incentive to foster renewable energy.

Under this system, the local power company is required to buy renewable 
energy
from independent producers, no matter how small, at rates slightly 
higher than the
average cost of production.

This means anyone with a cluster of solar cells on their roof can sell 
the power they
 produce at a profit.

The costs of the program are passed on to ratepayers, who see a small 
rise in their
electric bills (in Gainesville the annual increase is capped at 1 
percent). While rate hikes are
seldom popular, the community has rallied behind this policy, because 
unlike big power
plant construction -- the costs of which are also passed on to the 
public --

everyone has the opportunity to profit,

either by investing themselves or by tapping into the groundswell of 
economic activity
the incentive creates.

The full article is at  *http://tinyurl.com/cclc48*

Jim Doyle