Jun 23 2009
Massive government support for UK feed-in tariff
At the beginning of the month the British parliament voted in favour of a parliamentary motion supporting next year’s introduction of feed-in tariffs by a massive majority of 240 MPs. The legislation designed to spur investment in the photovoltaic (PV) industry will, when implemented be an extremely effective mechanism for promoting growth in the fledgling renewable industry in the UK as it has been in other regions where feed-in tariff legislation has been introduced.
Feed-in tariffs work by offering fixed, premium rates for electricity fed-in to the grid by small scale solar energy producers. Over a period of 20-25 years the feed-in tariff (FIT) contract offers a return to solar investors thus greatly increasing the installation of PV plant. In Germany, for example where the tariff has been extremely successful in attracting investment there have been other market advantages such as job creation in the solar industry and of course a sharp rise in solar equipment manufacturing.
Members of the UK solar industry are now increasingly optimistic that the government FIT will generate a successful solar industry across the UK. As Clive Collison, head of Action South Facing a Hertfordshire based solar installation firm commented,
“We are very excited about this. We are now getting all sorts of inquiries from companies, local authorities and individuals. But nothing is guaranteed. We don’t know the level it will be set at yet and the big energy companies are still lobbying against it.”
With big conventional energy producers lobbying against solar energy legislation and a lingering support for nuclear power, it will be essential that the government seizes the opportunity this year to set up a FIT which offers real possibilities for a vibrant PV industry in Britain. With Gordon Brown’s commitment to the ‘Green New Deal’ with planned job creation and economic revitalization by means of the renewable energy industry, it is expected that the UK will reap the benefits of a strong tariff mechanism. Jeremy Leggett, Chairman of Solar Century has added his wait to the debate by pointing out the dangers of missing the boat on effective PV policy,
“UK plc will essentially have to sit and watch as other countries create jobs, tax income and energy security in one of the fastest-growing industries within the emerging green industrial revolution.”
Tags
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 Germany Gordon Brown green energy green investment green new deal green policy green targets investment Kevin Langley legislation Megawatts National grid photovoltaic PV renewable energy solar solar energy Solar Feed In Tariff solar fit solar industry solar installation solar investment solar panels solar power solar products solar PV Spain UK UK Government US wind power wind turbine
[...] Round up of the week 18 09 2009 Monday evening’s meeting this week saw a visitor from a village just outside Basle telling us how much money the French government is spending to subsidise the cost of household solar water heating and electricity generation. Samuel now earns around £1,000 a year from selling electricity generated on his house, and has free hot water from March to September. This means the whole installation will pay for itself after about 7 years and is still guaranteed to last for another 13 after that. This French ‘feed in tariff’ is not quite as good as Germany’s, and only slightly ahead of the rate the UK will be introducing next year. [...]
UK will follow in Europe’s footsteps and experience significant market growth following the introduction of the new feed-in tariffs (FITs)….
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