Follow Gainesville's Footsteps on Feed-in Tariffs

Nearly a year into the launch of Gainesville, FL,’s groundbreaking solar feed-in tariff program, ICLEI has published a case study assessing what made the program so successful and how it was set up. Feed-in tariff programs, if you haven’t heard, are a hot topic: A handful of cities like Sacramento, CA, and states like Vermont and  Washington have already followed Gainesville’s lead, and other states are exploring the possibilities as well. ICLEI designed the case study to help interested local governments incorporate the lessons from Gainesville into their own planning efforts.

Dig into the case study and you’ll find highlights of key program elements, along with insights into GRU’s program design process. For example, GRU decided to pay investors $0.32 per kWh after doing quite a bit of homework: GRU surveyed its customers to find out how much extra they would be willing to pay to support such a program ($1 a month), and used financial models to determine what price per kWh would give investors the same net present value as GRU’s pre-existing incentive package.

Equipped with ample background information, GRU designed a program that will generate 32 megawatts (MW) of solar electricity by 2016, reducing emissions by 40,093 metric tons of CO2e annually. Within the first six months, so many investors had signed up that the program was filled to capacity. (GRU capped the program at 32 MW in order to keep the electricity rate increase below the $1/month breakpoint).

By setting a price that was attractive to investors but palatable for other customers, GRU’s program gained widespread support. Another key to the program’s success was the series of workshops GRU sponsored for contractors, leading solar installers to take the initiative to approach homeowners with suitable rooftops. The workshop increased the pool of applicants and generated an enviable media buzz.

There are other lessons to be learned from Gainesville: As of January, 2010, only 563 kWh of solar electricity are online, prompting GRU to streamline its application and permitting process and to educate applicants and planning boards about permitting requirements. GRU staff expect to ramp up installation and reach the annual 4MW target by the first year anniversary in March, 2010. 

>> View the Case Study Now

Update, April 5, 2010: Los Angeles Business Council Releases Breakthrough Solar Feed-In Tariff Study (Inhabitat)