Why REDs are so Important

As we climb our way out of the current economic cycle, new leaders are created and new industries will lead the way back to a strong, robust economy. Those who look to the future of the energy market know that Renewable Energy is an industry that is boiling over with potential. A growing new Renewable Energy industry in Florida will create untold thousands of jobs, collect millions in long term tax revenues, and bring us to the forefront of the national stage on energy independence and environmental stewardship.

Renewable Energy Dividends (REDs), also known as Feed in Tariffs (FITs), are a policy mechanism that have proven to promote the fastest, cheapest, and most widespread growth of Renewable Energy anywhere in the world, with implementation in over 45 countries. Currently at least 8 states in the U.S. are considering a Renewable Energy Dividends (also known as Feed in Tariff) policy mechanism. Today the State of Florida is positioning itself ahead of the curve and providing a beacon for the rest of the country to follow by considering this policy mechanism.

A Renewable Energy Dividend (RED) provides a fixed contract to the producers of Renewable Energy. The contracts, which are fixed for twenty years, afford the producer the ability to borrow against a guaranteed payment from their utility company. Also, these contracts, which are transparent, simple to understand, and open for inspection, include long-term agreed upon prices that the utility company will pay the producers for the energy it buys. The prices are set high enough to be an incentive to new producers and encourage existing producers to maximize their capacity.

The key components to a proven successful RED model:

Anyone can access the grid, democratizing the new market and allowing anyone to produce renewable energy.

All producers will receive a fixed payment, at reasonable rate of return, for a fixed period of time, typically 20 years, for the renewable energy that they produce.

There is no limit to the amount of renewable energy that can be produced.

The contracts are transparent and simple to understand.

With these features included in the design, a Renewable Energy Dividend policy would create a stable and competitive renewable energy marketplace. Imagine if homes, churches, schools, hospitals, condo associations and ranchers could all install solar, wind and other renewable energy sources on their rooftops or land and then produce energy and sell it to the utilities for profit....

It could completely transform our economic landscape. Floridians are owed the chance to participate in the Renewable Energy market with a level playing field, and Renewable Energy Dividends are the single most effective way to make sure this happens.

Visit FARE, Florida Alliance for Renewable Energy for more information:

https://www.onegreenflorida.com/Go_Green_Florida.php