Palo Alto Muni FIT With a Twist

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One of the challenges with fixed-price offerings is finding the right prices. Too low and nothing happens, too high and ratepayers take the hit.

The City of Palo Alto Utilities is proposing a solar FIT, but with an innovative twist.

The program is for 4 MW of solar resources in 2012, price is to-be-determined but expected to be 13-15 cents kWh, with a 100 kW minimum project size.

They’ll start with a fixed price, but then if the program is oversubscribed, participants will then required to offer a best price (i.e. it becomes a competitive auction—see details on the draft rate schedule doc).

As the program designers describe it, one of the goals is to remove the arbitrariness of allocating limited contracts by a lottery or first-come-first-served basis.

Innovation! It seems that there still are new things under the sun.

Vote Solar is a non-profit grassroots organization working to fight climate change and foster economic opportunity by bringing solar energy into the mainstream.

About Author

Walter’s contributions to CleanTechies over the past 4 years have been instrumental in growing the publications social media channels via his ongoing editorial and data driven strategies. He is the founder and managing director of Sunflower Tax, a renewable energy tax and finance consultancy based in San Diego, California. Active in the San Diego clean technology community, participating in events sponsored by CleanTech San Diego, EcoTopics, and Cleantech Open San Diego, Walter has also been a presenter at numerous California Center for Sustainability (CCSE) programs. He currently serves as an adjunct professor at the University of San Diego School of Law where he teaches a course on energy taxation and policy.

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