Sacramento utility receives huge response to renewable energy feed-in tariff

by Jbs022110 g3 — February 24, 2010—A California utility’s feed-in tariff (FIT) program for renewable or combined heat and power generating facilities met with an overwhelming response for January, according to the U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE).

The Sacramento Municipal Utility District (SMUD) reported that applications for the new FIT, which were all for solar photovoltaic power, exceeded its 100-megawatt allotment. SMUD lists only five applicants for the new program, all of which are commercial entities: Belectric, Inc.; Globall Connect; McClellan Park; Recurrent Energy; and SunPower Corporation.

The program, approved in September 2009, is designed to remove barriers to interconnection with the utility by providing standard rates and contract conditions that make it easier for SMUD and its power-generating customers to do business, explains EERE.

For example, for contracts signed in 2010, SMUD customers with photovoltaic systems will be paid on average $0.0968 per kilowatt-hour (kWh) for a 10-year contract, $0.1040 per kWh for a 15-year contract, and $0.1107 per kWh for a 20-year contract. Applications must include $1,400 for the Interconnection Review Fee and a deposit of $20 per kilowatt, and each system is limited to 5 megawatts in capacity, adds EERE.