A new study by the Institute for Local Self-Reliance (ILSR) shows how feed-in tariffs could enable citizens to participate in turbocharging Minnesota’s renewable electricity standard, and reduce costs.“A feed-in tariff is a tool to let everyday people join the renewable energy revolution. Unlike complicated tax credits or corporate equity partnerships, it’s a straight payment from the utility to my backyard wind farm,” said study author John Farrell. “Not only can communities produce renewable power in their backyards, they can produce real economic development in the backyard, as well.”
Renewable Energy Feed-In Tariffs (REFITs) could help level the playing field in Minnesota and other states by scaling renewable prices by the project size and the available resource (e.g. wind speed). The adjustable price would support small-scale projects hile growing renewables on a large scale. Feed-in tariffs also lend muscle to a state’s renewable electricity mandate.
“Evidence in European countries shows that feed-in tariffs encourage more renewable energy production for a lower cost than a mandate alone. That’s because, unlike the targets in a renewable mandate, a feed-in tariff is a financially transparent tool for getting projects built,” Farrell said.
The full report, Minnesota Feed-In Tariff Could Lower Cost, Boost Renewables and Expand Local Ownership, can be viewed online at from ILSR.