Feed-in Tariffs

The bill would require the Public Service Commission to establish rates and rules governing feed-in tariffs. Initial rates guarantees would be based on cost of electricity production plus a reasonable return for investors. As production costs decrease over time, rates would similarly decline. Utilities could count all renewable energy purchases towards their REPS goal.

Considered a “production-based incentive,” feed-in tariffs encourage private investment in renewable energy technologies because payback is assured. They will enable Kentucky communities and households to produce small-scale, locally-based renewable energy with less financial risk and less up-front money and to create dynamic local jobs.