A proposal for a “feed-in-tariff” program in Los Angeles, California is being pushed by a coalition of business, environmental, and non-profit organizations seeking to take advantage of Southern California’s sun and reap both environmental and economic benefits of green technology.
The potential feed-in tariff program (or FiT) encourages both businesses and homeowners to install solar panels on their roofs, generate electricity, and then sell that electricity back to the power company. Backers of the proposal for a 600 megawatt installation estimate that it will create about 11,000 local green jobs over 10 years and that the power generated from private installations would cost less than current power generation methods used by Los Angeles’s Department of Water and Power (LADWP). One of the downsides: even with the clean technology, the FiT will still only cover about 3% of Los Angeles’s power needs when it’s up and running.
The annual net cost to LADWP would range between $25 and $35 million – a mere drop proverbial bucket when you consider that LADWP’s budget is about $4 billion. If adopted, this FiT would be the largest of its kind in the United States.