Implementation and Results of Solar Feed-In-Tariff in Gainesville, Florida

Abstract

In the United States, the City of Gainesville in Florida was the pioneer in the implementation of a long-term feed-in-tariff model to purchase solar electricity generated by privately owned systems located in the public utility’s service territory, accelerating the investments in renewable energy. Based on the German model, the city implemented the feed-in-tariff program using 20-year agreements with suppliers. This program is funded by the electricity ratepayers through an increment in the electricity bill. A flat purchase rate is calculated using solar electric system costs and varies based on the type and size of installation. This cost-based purchase rate ensures a safe return margin to investors and is reduced annually for new contracts as market installation costs go down to promote the technology development in the region and encourage investors to act. Gainesville adopted this renewable energy policy in 2009 to diversify its generation portfolio, respond to community demands and meet carbon reduction goals, and discovered in this program a tool to expand distributed renewable generation, help reduce carbon emissions in the city. The program provided a rise from near 300 kW of solar energy installed capacity in 2008 to approximately 20.5 MW by April of 2014 (18.55 MW through FIT and 1.99 MW through net metering), and this deployment of more than 260 installations created a solar market in the region and contributed to sustained construction and solar employment through a difficult economy. This significant success in the adopted scheme turned Gainesville into a global leader in solar energy installed capacity per capita, surpassing more mature markets such as the state of California. Using some lessons learned from Gainesville’s experience and from dozens of nations across the world, similar feed-in-tariff programs have been adopted in larger municipal utility markets and some states. Also known as CLEAN in some U.S. jurisdictions (Clean Local Energy Accessible Now), municipal utilities including Palo Alto, Sacramento, Ft. Collins, Long Island Power Authority, and Los Angeles have similar programs, as does the State of Vermont.