Equitable solar
The French speaking part of Belgium has passed what may be the world's first PV support policy with different rates based on household income. Furthermore, recent reports from Denmark and Australia show that more attention is being paid to infrastructure costs in implementing PV support policies.
Last week, Renewables International reported on how our current policies to promote photovoltaics – both of feed-in tariffs and net metering – do not allow investors and solar to cover their fair share of fixed grid costs when those grid costs are passed on as part of a kilowatt-hour rate.
In addition to the lively discussion with readers in our comments section, the story also received a lot of attention on Twitter, where additional readers pointed out that Denmark is also looking to make sure that grid connection charges remain the same for everyone whether you have a solar roof or not. And on the very same day of our report, our colleague Jonathan Gifford of Berlin's PV Magazine also wrote about the growing concern about solar homeowners having to cover their fair share of infrastructure costs in Australia.
And again on the same day, the government of Wallonia (the French-speaking part of Belgium) announced a new policy called Qualiwatt, which will allow homeowners to invest in solar with a payback of 7 to 9 years – depending, notably, on their income. Low-income families (the lowest 20 percent) will have a seven percent ROI over 20 years, providing a payback in seven years. In contrast, the 50 percent in the middle will get a five percent ROI, providing a payback in eight years, compared to a four percent ROI in the payback of nine percent for the richest 30 percent of households. The policy also apparently stipulates that the solar panels have to be "made in Europe."
While the stipulation of domestic content is nothing new, it may be the first time that a policy has been completely contingent upon origin; usually, of bonuses paid for local content. In addition, the policy is the first I have heard of that provides a different support levels based on income (but feel free to correct me in the comment section below). Obviously, power providers will need to know how much you make if you want compensation for your solar power in Wallonia.
It is good that we focus on how our energy policies impact the poor. For instance, California has progressive power rates, with the first chunk of power each month costing less than subsequent ones – in order to ensure that the poor can afford basic power supply even as we provide an incentive for conservation. The unintended outcome in combination with net metering, however, is that solar has been especially profitable for those (generally the rich) who pay the highest marginal power rates. (Craig Morris)
