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Apr 29 2009

Spanish example illustrates feed-in tariff importance

With the British government currently assessing the details of the feed-in tariff which is to be introduced in 2010, they will undoubtedly heed the example of Spain and the way in which the government there failed to live up to the initial expectations of the tariff. Spain, despite having one of the strongest photovoltaic sectors in the world, failed to capitalize on the successes of the solar industry there by changing the way PV investment was subsidized, something which has led to a steep decline in photovoltaic investment and installation in that country.

In conjunction with the global financial crisis which has taken a particularly strong hold of the Spanish economy, the reduction in solar investment has contributed to a culling of jobs and cutbacks in PV manufacturing in Spain, something which will see a surplus of PV plant being exported to growing solar sectors elsewhere in the world.

Industry insiders in the UK have put pressure on the government and lobbied the Department of Energy and Climate Change by expressing the importance of a feed-in tariff which stimulates sector growth by offering incentives and security to investors. It is generally accepted that a tariff rate of at least 20p per unit of electricity fed-in to the national grid by small scale energy suppliers would be sufficient in part to kick-start the solar industry in the UK following its inauguration in 2010.

Certainly, elsewhere where comprehensive feed-in tariff legislation has been introduced there have been marked successes in the uptake of photovoltaic technology and job creation in renewable industries. In Germany for example, the feed-in tariff legislation has proved to be consistent and generous in the provisions offered to those wishing to invest in the German green sector. Indeed, the German tariff model is often held up as an example of how to incentivise investment and build public awareness.

Spain is expected to experience a dramatic reduction in photovoltaic installation in 2009 with 375MW compared to 2008 installations of 2,500MW. Spain will now fail to live up to its ambitions of becoming the European Union’s leading renewable energy producer by 2020 largely because the Zapatero’s government has neglected the tariff scheme across the country. The introduction of a 500MW project cap along with the withdrawal of essential subsidies has seen the solar industry stagnate and since the new year, decline. Members of the solar industry in the UK will therefore be hoping that the British government follows the example of Germany rather than Spain in the way that they choose to roll out the much talked about feed-in tariff next year.

 

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carbon emissions China Clean energy cash back Climate change DECC Department of Energy and Climate Change Ed Milliband electricity energy act Energy Bill feed in tariff FIT fossil fuels Friends of the Earth Germany Gordon Brown green energy green investment green new deal green policy green targets Kevin Langley Megawatts National grid photovoltaic PV renewable energy solar solar energy Solar Feed In Tariff solar fit solar industry solar installation solar investment solar investments solar panels solar power solar products solar PV Spain UK UK Government US wind power wind turbine

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Apr 22 2009

Solar industry grows despite recession

Published by admin at 4:05 pm under Solar Feed In Tariff,UK Green Policy

A report released last week announced that the solar industry has grown worldwide despite the recession which has gripped economies. The report stated that the photovoltaic industry saw a 89 per cent increase through 2008, something which has been reflected through the first quarter of this year with the rise of investment in green technologies.

2008 marked an important watershed for the solar industry and photovoltaic technology in general, particularly in the UK as the British government passed legislation designed to promote green energy. The Energy Act of November and the establishment of the Department of Energy and Climate Change was seen to mark a shifting of gear in British political circles as the UK government sought to establish environmental legislation, emulating the success stories of California, Spain and Germany. The solar successes, particularly in Western Europe have been based largely on the establishment of coherent feed-in tariffs which have proved to be effective mechanisms at incentivising investment in the green sector.

In spite of the global photovoltaic revolution breaking out, the UK government has been slow to get behind the solar industry with enough weight to encourage green investment en masse. The recent political rhetoric of the prime minister Gordon Brown in which he espoused the need for a ‘Green New Deal’ in order to revitalise the economy through ‘greentech’ investment has not been immediately followed up by action. The feed-in tariffs which were established in principle at the end of last year will not come into effect until 2010 and until then, there are no other government schemes in place to make solar investment viable since the government terminated its grant program without warning at the beginning of the year.

Leading members of the solar industry, along with representatives from the construction industry have lobbied the government in order to ensure that the government’s rhetoric on solar and climate change is matched by action which will allow the solar industry to reach its potential in the UK, just as it is doing in Germany with outstanding commercial results.

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carbon emissions China Clean energy cash back Climate change DECC Department of Energy and Climate Change Ed Milliband electricity energy act Energy Bill feed in tariff FIT fossil fuels Friends of the Earth Germany Gordon Brown green energy green investment green new deal green policy green targets Kevin Langley Megawatts National grid photovoltaic PV renewable energy solar solar energy Solar Feed In Tariff solar fit solar industry solar installation solar investment solar investments solar panels solar power solar products solar PV Spain UK UK Government US wind power wind turbine

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