California Feed-in Tariff
| Program Type | Power buy-back program |
|---|---|
| Technologies | Solar thermal electric, photovoltaics, wind, geothermal electric, anaerobic digestion, small hydroelectric, tidal and wave energy |
| Amount | Dependent on output |
| Required Documentation | Contract-based |
| Official Web Site | http://www.cpuc.ca.gov/PUC/energy/Renewables/hot/feedintariffs.htm |
Under the California Feed-In Tariff program, customers of any California public utility (those with fewer than 75,000 customers are exempted) can elect to sell any renewable energy they generate beyond what they use back to the power company. The downside is, consumers who elect to participate in this program cannot participate in any other renewable energy incentive program, such as the California Solar Initiative.
How it works is that customers enter into a contract with their utility that allows them to sell power to the utility at varying rates—determined in the contract and calculated factoring in the hour, season, and other variables—over a period of years. The longer the contract, the more the utility will pay per kilowatt-hour. On average, for a contract entered into in 2010, customers will make roughly $.08 per kw/h on a 10-year contract and a little over $.10 per kw/h on a 25-year contract.
For most residential consumers with small energy-generating systems, opting for an incentive program is probably going to be the better deal. However, anyone with a renewable-energy-generating system can qualify. If you’re interested, contact your power company and apply.
