Re: What feed-in is 'equivalent' to the old Opalco incentive?

From John Bogert

Chris,

Thanks for your analysis of tariffs and paybacks, excellent work!.  I have a
couple of comments as an individual member of the co-op, not as a Board member.

1.  I disagree with the concept of a floor in the incentive formula that will be
guaranteed by co-op members for several reasons: disincentive for contributions
/ unfair to tax members for individuals solar/wind installations / long term
financial burden on OPALCO and its members.

2. I do agree with the cap to keep reserve funds to smooth incentive payments
over the years.

3. I believe a "buy all, sell all" approach is appropriate rather than a net
metering arrangement as your spreadsheet implies ( retail offset contribution)
.  Reasons ... OPALCO's customer charge covers only 1/3 of the cost of service
to members, the rest being embedded in the energy charge.  If the producer
'offsets the retail energy charge with self  generated energy then the rest of
the membership is paying for his/her cost of service.  Buy-all sell-all , gives
the producer the benefit of the incentive for all kWh produced and an additional
wholesale rate for the energy put into the grid.

4.I think the installed cost for a solar system is low ... my research indicates
about $9-10 per watt.  Also the production figure seems high ... 1200 kwh
annually per kw installed  implies the optimum conditions (no shading, correct
angle to the sun at all times, clean panels, etc.)


Again, thanks for the analysis.  I'd be interested to hear your reasons for
including a 'floor' in the incentive and also the reasons for net-metering vs
buy-all sell-all

Cheers,

John




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