US states can offer feed-in tariffs (FITs) for renewable energy generation, but they must do so in a way that meets federal requirements. That’s the general finding of a long-awaited report released by the National Renewable Energy Laboratory (NREL).
The report is available as a pdf.
Also, Paul Gipe, who covers feed-in tariff issues world-wide, gives a breakdown on various elements of the report on wind-works.org.
Gipe says there is plenty in the report to stir up both sides of the FITs debate. Opponents will note that European and Canadian methods of setting specific direct tariffs don’t comply with federal law in the US.
But the report maps out a clear workaround. Feed-in tariffs can be lawful under the Public Utility Regulatory Policies Act (PURPA), if they are voluntarily offered by utilities, or based on "avoided cost" and paid with renewable energy credits (RECs), subsidies, or tax credits.
Read additional coverage at the link below.
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