Whats new!
Many new laws are being proposed in Maine.
Here are a couple.
The MAINE RENEWABLE ENERGY SOURCES ACT
LD 1378: a feed-in law for Maine
WHAT IT IS
The Maine Renewable Energy Sources Act (MRESA) is designed to encourage the development
of distributed, renewable energy-based power generation, jobs creation and economic development.
MRESA is a market based alternative to tax-financed incentives. At its core, it consists of market-
rate payments per kilowatt-hour for electricity generated by a renewable resource, enshrined in
long term contracts between grid operators and qualified generators. It has a built-in efficiency-
incentive because, unlike with grants and tax credits, its beneficiaries are paid only for the power
they actually deliver to the grid.
With MRESA in force,
· utilities pay a set price for renewably generated power, regardless of the amount of power they generate
· the price is locked in by long term contract
· the price is reduced with each new starting year providing an incentive to act sooner rather than later
· the price is set independently from the retail rate, on the basis of what power from a typical renewably powered generator would cost: (cost of system/probable output)
· to turn a profit, the citizen-producer only has to make sure the system performs well
WHAT IT DOES
MRESA
· introduces a market-based incentive which will phase out when no longer needed
· does not depend on tax dollars
· creates a large number of non-exportable jobs
· offers a predictable rate of return on investment, making possible bank financing for virtually anyone with sufficient equity in a house
· increases the share of distributed power generation
· provides a strong incentive for performance and efficiency
· will be evaluated and adjusted every two years
MRESA “Made in Maine” features:
· higher per-kWh payment to renewable power generators if the system is at least 70% made in Maine
· higher per-kWh payment to generators with systems made in the state’s 10 lowest wage counties
· higher per-kWh payments to systems installed on government facilities or land if the installation results
in property tax reduction (e.g. solar panels on a school roof, methane generated from landfills, sewage,
organic waste by a municipality)
MRESA’s rates/kWh are set by the Maine Public utilities Commission
