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Have to say that the solar FIT is, imo, far too high and provides far too high an ROI which fostered the boom/bust cycle in Spain.

Even cutting the solar FIT in half would almost certainly leave it a very profitable investment, more than profitable enough to sustain a good growth curve that would enable constantly lowered cost of production which enables moving the FIT down gradually year-to-year.

Thus, perhaps, cut the FIT in half and reduce it by 1 Euro Cent / kWh or so each year for new installations.  

Blogging regularly at Get Energy Smart. NOW!!!

by a siegel (siegeadATgmailIGNORETHISdotPLEASEcom) on Wed Apr 28th, 2010 at 09:15:28 AM EST
The Spanish solar FIT is nowhere indicated in the diary, what you see is a number per W of capacity (not kWh produced) calculated by MfM.

In actuality, the Spanish FIT for PV was already recuced more than a year ago, leading to a brutal bust in 2009. What you propose, an immediate slashing by half, would amount to a similar bust. To keep the market (and factories' steady output) alive, a more orderly reduction would be okay, say -10-15% each year or half-year. For planning security, it would be best if these degressions are known in advance for at least a year; but the Spanish FIT rates are re-set each year.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Thu Apr 29th, 2010 at 06:24:25 AM EST
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Thank your for correction & information.  (Actually ... reminder ... had been aware of this and, well, info overload?)  

We're agreed that a planned & well-announced long-term program of gradual FIT reductions is a better path forward.

Blogging regularly at Get Energy Smart. NOW!!!

by a siegel (siegeadATgmailIGNORETHISdotPLEASEcom) on Thu Apr 29th, 2010 at 08:38:49 AM EST
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I need to dig up the actual regulated tariff chart, it varies by tech, and the chart doesn't mention technologies by has categories.  To figure out what those categories are you have to dig up the law that established it and defined them.  Maybe in a while.

I beginning to think that I shouldn't have calculated those rates for rough comparison, because people are taking them as absolute rates for electric production......

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Apr 29th, 2010 at 11:35:09 AM EST
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