FITs are an interesting incentive. Truth is many households will consume all the energy from the fuel cell or most of it. So a FIT may be more a psychological incentive than a real one. Having said that, a FIT may also act to moderate energy consumption because the opportunity cost element effectively increases the cost of energy for someone eligible to receive it. Every KW you dont put into the grid costs you the value of the FIT you miss out on. (my kids better watch out - xbox, ps3, big screen tele, music and lazying around the house while not at uni might all be things of the past! I can hear it now, "get out of the house and use someone else's electricity you bums!". I might share the FIT with them to give them the incentive to spend hours in the Uni library!)
FITs for solar make more sense. Solar generates electricity during the day during periods of peak demand. In summer months in Australia, the wholesale market price for peak electricity can be much higher so the FIT may not be too far away from the market price. Fuel Cells, on the other hand, will deliver power 24/7/365, so they will also pump electricity into the grid when prices are at their lowest.
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