The World's #1 Renewable Energy Network for News, Information, and Companies.

UC Berkeley Study Touts Economic Benefits of FITs

The University of California, Berkeley has released the results of a study examining the economic benefits of a comprehensive Feed-In Tariff (FIT). The analysis shows that enacting a robust FIT in California to achieve the state's 33% Renewables Portfolio Standard (RPS) would create three times the number of jobs, over 2 billion in additional tax revenue, and stimulate tens of billions in new investment. Furthermore, the adoption of a comprehensive FIT will cost-effectively fulfill California's 33%-by-2020 goal on schedule.

Headed by Dan Kammen of UC Berkeley’s Energy and Resources Group, the analysis examined the economic benefits of a FIT deployed in California to facilitate the state’s effort to achieve the 33% RPS by 2020. A FIT is essentially a fixed price, long-term contract for a utility to buy electricity produced by renewable energy generators.

“This report demonstrates the benefits of using a feed-in tariff as one of the tools to achieve job creation and get our economy back on track in addition to achieving energy independence and reducing our need for fossil fuels. It is a wonderful guide to the kind of policies that will get us to a more prosperous and sustainable energy economy. I am grateful to Dan Kammen, Max Wei, and their colleagues for continuing to produce the kind of solid analysis we need to make better policy decisions,” said California State Senator Fran Pavley (D-Agoura Hills).

The Berkeley study specifically examined a FIT that would be available to solar projects up to 20 megawatts (MW) in size. Professor Kammen and his colleague Max Wei studied the impact of such a FIT on employment, tax revenue, and investment compared to current RPS scenarios being modeled by California regulatory agencies.

"The conclusions confirm the FIT Coalition’s unvarying position that FITs are the best policy mechanism for accelerating the deployment of cost-effective renewables while delivering tremendous economic benefits wherever FITs are designed to achieve scale. This study will open many policymakers’ minds to the unparalleled benefits of FITs and their ability to unleash the wholesale distributed generation market segment," said Craig Lewis, executive director of the FIT Coalition.

The study’s key findings include that three times the number of jobs will be created if a FIT is enacted to complement the RPS. This translates into roughly 280,000 more jobs over the next decade, or an average of 28,000 jobs per year, with more jobs created in the early years because wholesale distributed generation (WDG) projects can come online quickly.

Another key finding includes over $2 billion in additional tax revenue for the state. Further, the study found that a comprehensive FIT would stimulate up to $50 billion in new private investment in the state with the potential for those renewable energy projects to be eligible for another $15 billion in federal tax benefits.

Click here to see details on the study’s methodology, an accompanying summary or the entire report.

RELATED ARTICLES

The Energy Show on Renewable Energy World

Listen Up: Affordable Solar Panels Made in the USA

The Energy Show on Renewable Energy World Most of my rooftop solar customers express a preference for buying "Made in the U.S.A.” solar panels. And they were willing to pay a premium for domestically manufactured panels. But because there were very few U.S. ma...

Quantifying Returns: Does Energy Storage Coupled with PV Offer Big Savings?

Andrew Burger, Contributor

Still in their infancy, battery-based intelligent storage systems haven't built up the performance track record most banks and investors like to see when committing capital to a new technology, project or company.

Renewable energy jobs

Global Renewable Energy Employment Surges 18 Percent to 7.7 Million

Andrew Burger, Correspondent Ongoing growth in renewable energy investment and deployment is creating jobs worldwide — and lots of them. This job growth is helping governments address a fundamental economic problem plaguing developed and developing cou...
Beach sand

Italian Company Uses Sun-Heated Sand to Produce Energy

Flavia Rotondi and Alessandra Migliaccio, Bloomberg

Italy’s well-known sun and sand form the basis of many beach holidays. An Italian company has also found another purpose for the combination: energy production.

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Renewables and Mining Summit and Exhibition

African mining leaders are seriously exploring new energy solutions to s...

JuiceBox Energy Certified Installer Class

JuiceBox Energy is reapidly building out its national certified installe...

EU PVSEC 2015 (European PV Solar Energy Conference and Exhibition)

The EU PVSEC is the largest international Conference for Photovoltaic re...

COMPANY BLOGS

U.S. Solar Manufacturing Growth Continues as Market Expands

The U.S. has become the third largest solar market in the world, with a ...

Before Going Solar: Five Tips for Surviving Your HOA

Homeowners Associations (HOAs) are an inevitable part of living in plann...

Six Fun, Unique Solar-Powered Gifts for Mom

Mother’s Day is only a week away. Have you decided what you’...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS