Wednesday, February 27, 2008

First Feed in Tariffs, maybe...

And wouldn't you know, they aren't necessarily going to be in California, the traditional leader in matters of energy and pollution policy for the nation.  In this case, the Illinois legislature has been presented with a bill proposing that power generators be paid guaranteed rates by the power distribution operators for every bit of power that they produce.  The purpose of the tariff is to speed the repayment investors in the renewable power generation at a faster rate and thereby spur development.  Also, this isn't targeted for big companies, but can apply to small installations as well.   The federal government currently uses the Production Tax Credit and Installation(??) Tax Credit to fulfill these roles, but due to their nature, really only work for large generators with tax gains to offset.  Also, due to the unstable history of the continuance of these programs, frequently renewed for a year or two and then not renewed for a year.
Read more about it over at sustainablog.