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The real insight for me is the success of the feed in tariff program. These reward suppliers at higher than market rates for feeding electricity back into the grid. E.g. You get paid retail prices, where you really should only get wholesale, which excludes transmission costs.

For personal generation a well designed feed in tarrif should provide incentive to build solar panels/wind turbines on your roof etc. A million households producing a little power each makes it a lot easier to get to sustainability.



Yes, the FIT is great if a) you're a solar equipment provider that can't compete with other energy technologies or b) if you're a energy provider that has hitched its wagon to solar energy, and can't compete with other technologies on a cost basis.

For consumers, it's not so great. Germany has some of the highest electricity prices before the FIT, and the FIT just makes it worse.




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