“This is a very American idea,” Arne Jungjohann, a director at the Heinrich Boll Stiftung Foundation (HBSF), said at a press conference Tuesday morning in Washington, D.C. “We got this from Jimmy Carter.”
Germany adopted and continued Carter’s push for energy conservation while the U.S. abandoned further efforts. The death of an American Energiewende solidified when President Ronald Reagan ripped down the solar panels atop the White House that Carter had installed.
Since then, Germany has created strong incentives for the public to invest in renewable energy. It pays people to generate electricity from solar panels on their houses. The effort to turn more consumers into producers is accelerated through feed-in tariffs, which are 20-year contracts that ensure a fixed price the government will pay. Germany lowers the price every year, so there’s good reason to sign one as soon as possible, before compensation falls further.
The money the government uses to pay producers comes from a monthly surcharge on utility bills that everyone pays, similar to a rebate. Ratepayers pay an additional cost for the renewable energy fund and then get that money back from the government, at a profit, if they are producing their own energy.
November 15th, 2012