Spread of ‘Feed-in Tariffs’ Will Expand U.S. Renewable Energy Use

A popular consumer program that has helped catalyze Germany’s solar-power boom is beginning to spread throughout the United States. The policy, known as feed-in tariffs, offers homeowners and other small-scale producers of renewable energy favorable long-term contracts — often above market rates — when they sell electricity to the central power grid. The New York Times reports that Washington state, Vermont, and cities such as Sacramento, Calif. and Gainesville, Fla. have all adopted feed-in tariff programs. The program approved by the Sacramento Municipal Utility District, which serves 1.4 million people, will offer homeowners with solar panels or windmills contracts of up to 20 years to sell electricity to the grid. The utility said that some homeowners have already inquired about installing additional solar or wind capacity on their spare land and generating electricity for the region. Feed-in tariffs have been a boon to solar development in Germany, as they assure homeowners that the initial up-front investment for solar panels or windmills can be recouped over time.