Idea could make city FIT for solar power

Idea could make city FIT for solar power

BY DAVID YOUNG • DavidYoung@coloradoan.com • January 28, 2010

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Feed-in tariffs may be the future of renewable energy in Fort Collins and the United States, according to industry experts.

Feed-in tariffs, or FIT, worked for Germany and Gainesville, Fla., and some believe it could work for Fort Collins.

On Wednesday evening, before an audience of about 250 at the Innovation After Hours at the Hilton Fort Collins, 425 E. Prospect Road, G.J. Pierman, president of Wirsol Solar Colorado, shared how FIT helped revolutionize the solar industry in Germany, where his parent company, Wirsol Solar AG, is based.

Designed to promote the production of renewable energy, feed-in tariffs pay a business or resident a fixed rate for electricity produced through renewable energy sources.

FIT made Germany the world leader in solar power, and Fort Collins could benefit greatly from such a system, Pierman said.

Wirsol Solar Colorado, which opened its North American office in Fort Collins nearly a year ago, recently completed its first U.S. solar photovoltaic, or PV, array installation at Odell Brewing Co.

The demand for Wirsol's services in the U.S. is evident as the three-person company, looking to grow to nearly 10, has 35 ongoing projects. Two of those projects are in Fort Collins: the Bohemian Cos. building at East Mountain Avenue and Walnut Street and the RMI2 building at College Avenue and Vine Drive.

Pierman said a FIT system is cost-effective, stable and good for the economy. In 2004, in Germany there were 160,000 jobs in the renewable energy field; by 2008, that number grew to 280,000 and is slated to overtake the auto industry as the largest employer, Pierman said. Of those jobs created, an estimated 60 percent can be attributed to the feed-in tariffs.

Pierman estimated a FIT in this country could create an estimated 1 million jobs paying around $20 per hour. The cost to the consumer to implement renewable energy is limited, only 3.5 percent of the bill. In 2007, Pierman said the cost increase to a household's electric bill with FIT was equivalent to that of a Starbucks' latte.
Rather than reinvent the wheel, Pierman pointed to Germany's success as a roadmap for Fort Collins and the nation to follow.

"The best place in Germany equals the worst place in the U.S." said Pierman of the opportunity for solar power. "If Germany can create a solar miracle, than surely with the resources we have, we can do the same."

One American city that has found success with FIT is Gainesville, Fla.

On March 1, 2009, Gainesville adopted a FIT and pays 32 cents per kilowatt-hour. Pegeen Hanrahan, mayor of Gainesville, and John Crider, strategic planner with Gainesville Regional Utility, attested to the success they have had.

The city received seven years' worth of applications in its first four months. From 1980 to 2008, solar PV installations in Gainesville generated 302 kilowatts. In the first nine months after instituting FIT, that number nearly doubled to 564 kilowatts, Crider said.

There has been $2.5 million spent by FIT customers to install the equipment, which has spawned new companies and business models.

Hanrahan described Gainesville's FIT as a "renewable energy contract" in which an individual or company installs PV arrays on a roof or field and then is paid a fixed rate for that energy for 20 years. The business or individual can calculate that 20-year income and take it to the bank for a loan.

John Long, founder of Zero Hero, said he thought Fort Collins would support feed-in tariffs.

"I think there would be overwhelming support because it doesn't really cost anyone," he said. "I hope to see something like that happen not just here in Fort Collins, but U. S. and nationwide."Add ad text here