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.