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Showing posts from May, 2012

Government has become big business and has lost its way

Government has become big business and has lost its way
http://reneweconomy.com.au/2012/fear-and-loathing-as-utilities-grasp-impact-of-solar-pv-15262
Many governments of the world are reducing Feed In Tariffs (FITs) as fast as possible as they see their electricity revenue streams possibly diminishing, or maybe as they start running out of money. However, this is a myopic view and those countries that keep FITs going will reap the rewards as their economies grow and their tax base increases. Note that South Africa doesn't need FITs as we have already reached Grid Parity, i.e. the price where consumers can make electricity at the same price that we can buy it. Only two things are missing in South Africa: deregulation and Net Metering. With Net Metering, the consumer gets paid the same price for electricity we sell to the grid as for electricity we buy from the grid. With deregulation, protectionist laws are removed and the paying field is leveled.
The governments of the world are re…