PV buydown policy request [RE-wrenches]

[Bob Maynard, Energy Outfitters]

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Hi Matt,

I believe the only way production credits will work well is with a solid no or low interest loan program.  With those 2 elements, the industry overall would slow down some and I believe become more stable and sustainable.  Currently we ride a boom/bust cycle with up front rebates as funding becomes available or runs out.

Ideally the production credit should be enough to pay 50-70% of the annual loan payment with the customer picking up the balance.  I believe this would be quite palatable to many potential customers.

Regards,
Bob Maynard
Energy Outfitters


Matt wrote:
I'm going to be the devil's advocate in this issue.

Even though it's obvious that performance-based incentives are the only
really fair way of
rewarding good system design and performance, how do you attract a
purchaser when their rewards are spread over a (very) long period of
time? With front-loaded incentives the initial costs are at least toned
down to a more palatable level for those who must borrow $ to buy the
system. 

The only way it could work to the purchaser's advantage is if they had
interest-free or extremely cheap loans. As it is, a 10 year break even
point is pretty common, and I doubt that a country with private power
suppliers will be inclined to force the utilities to pay at a higher
level than their avoided cost to non-firm power suppliers just to help
private micro generators compete with them.

What about a hybrid system of up-front incentives with added
performance-based premiums of actual money at the usual retail price for
production that exceeds the consumer's consumption? Wouldn't that
promote bigger systems and greater energy efficiency all the way around?

Just my $00.02 worth

Matt T
Allan,

I agree with Bob Maynard.

Performance based PV incentives will prove more beneficial, in the
long-term, than capacity based incentives.   PV incentives paid in
proportion to the energy produced will ensure that designers and
installers are more attentive to performance and will also mitigate
political concerns regarding funding of poorly designed and/or poorly
functioning systems.   Capacity based incentives served the purpose of
incentivizing PV in California as an emerging technology with undefined
performance and reliability.  Seems to me we have passed this emergent
stage and PV is now a reliable and relatively mature technology.   The
problem remains that PV power is still more expensive than central
station burning of carbon based fuels, and as such, incentives are still
needed to attract investors and customers.  Performance based incentives
will place the burden of risk with the end consumer, honest
knowledgeable installers will be required and utility-grade performance
meters will be necessary for accurate accounting and fraud prevention.
Consumers will need uncomplicated forthright facts regarding siting
issues, shading and overall system and component inefficiencies.  

I also believe incentives need to be structured to provide benefits for
traditional utilities as well.  Perhaps REC's can be aggregated to
contribute towards State RPS requirements in an effort to keep utilities
un-hostile towards greater use of DG within their grids.

Graham Owen
GO Solar

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