The Future of Feed-In Tariffs: Capacity Caps, Scheme Closures and Looming Grid Parity

18 Pages Posted: 12 Jul 2012 Last revised: 29 Apr 2015

Date Written: April 30, 2012

Abstract

This article examines recent developments in feed-in tariff (FIT) law for solar photovoltaic (PV) electricity generation in selected jurisdictions. In particular, legal and policy issues surrounding capacity capping and closure of FIT schemes to new entrants are examined at a conceptual level. The need for downward adjustment of FIT rates is discussed. The application of capacity caps in Australia, Spain, France, Czech Republic and the UK is examined. Characteristics and examples of best-practice and worst-practice amendment of FIT laws for solar PV are identified. It is found that caps are a blunt instrument for constraining the impact of FIT on electricity prices. The alternative of tariff degression is discussed.

Keywords: solar energy, renewable energy laws, climate change, climate law, solar PV, feed-in tariffs, capacity caps, Australia, Germany, Spain, United Kingdom, Czech Republic, electricity regulation, electricity economics, environmental economics, law and economics, environmental law, comparative law

Suggested Citation

Prest, James, The Future of Feed-In Tariffs: Capacity Caps, Scheme Closures and Looming Grid Parity (April 30, 2012). ANU College of Law Research Paper No. 12-24, Available at SSRN: https://ssrn.com/abstract=2104087 or http://dx.doi.org/10.2139/ssrn.2104087

James Prest (Contact Author)

ANU College of Law ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 1689 (Phone)

HOME PAGE: http://law.anu.edu.au/scripts/StaffDetails.asp?StaffID=377

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