The recent news that the UK government will be introducing a feed-in tariff system in order to encourage the growth of renewable energy has been well received by advocates of clean energy production who see it as the best way of achieving grid parity with non-renewable sources in the future.

The UK government set climate change goals at an 80 per cent reduction of carbon emissions by 2050. This, along with the European Union which has set the target of a 20 per cent take up of renewable energy production by 2020 means that governments of all member states have been taking some form of action to reach targets set both by their own government and of course diversify their means of energy production.

A document released by the British government entitled ‘Consultation on renewable electricity financial incentives 2009’ has set out the UKs plan to roll out feed-in tariffs within the next 12 months. In the report Lord Hunt stated,

“feed-in tariffs will open up renewable energy generation beyond the traditional energy companies. It will enable communities to come together and invest in generating renewable electricity. It will make it easier for householders and business to finance their own electricity generation. It will help us all play our part in renewing our electricity supply”.

The points set out in the report and explained by Lord Hunt concisely illustrate the obvious benefits of feed-in tariffs which will have the duel effect of reducing carbon emissions through the adoption of solar while also helping the economy through job creation and the growth of the photovoltaic sector from manufacturing through to installation companies.

With Gordon Brown recently declaring his desire to create a green economy through the introduction of tariffs, it is certainly the view of many within the government that this system will be the most effective means of doing it.