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The Gainesville City Commission has endorsed Florida utility GRU’s proposal to offer what the utility says is the first solar photovoltaic (PV) electric feed-in-tariff (FIT) program in the U.S.
According to GRU, program participants will invest in their own PV systems to generate electricity and sell it directly to GRU under a 20-year contract at a rate of $0.32 per kilowatt hour. This rate is an increase from the originally proposed $0.26 per kilowatt hour.
GRU’s previous program offered rebates to encourage the installation of PV systems and bought back the excess power that was not used in the home or business. GRU says the advantage of the FIT is that the participant’s income is predictable because all of the power generated will be sold directly to the utility. This factor, according to the company, is expected to increase program participation.
GRU also reports that it already has received applications to install PV systems with a total combined generating capacity of approximately 4 MW, fulfilling the utility’s first-year target for the program.
With its first-year target met, GRU says it will accept applications to fulfill its 2010 target of 4 MW. The rate of $0.32 per kilowatt hour will remain in effect for 2010, and GRU will use market data to evaluate and set the rate for 2011.
Press clipping courtesy of GRU |