Much hope was pinned on Copenhagen and Cancun as a way of highlighting the case for renewable energy and prompting large scale investment in green energy. Government’s globally assumed that private investment would pour in, helping to bring the big world economies closer to meeting climate change targets, win votes and of course revitalise struggling economies with a vibrant green energy industry. As it was subsequently found out, the world financial crisis was such that rather than see the universal growth of green energy, some sectors were forced to make drastic, indeed devastating cut backs.

The world recession has had a detrimental effect in certain areas of renewable energy. Certainly Spain, once a world leader in solar pv thanks to its feed-in tariff policy suffered greatly from cuts made to the tariff by Zapatero’s government in the face of a Spanish economy on the brink of collapse. However, according to the Director of the UK Carbon Trust Ben Sykes, the recession has not necessarily meant a downturn in all sectors,

“The big, exciting stuff that was going to come out of a very successful global conference didn’t happen, but you have steady growth in a number of technology areas”

The world of finance certainly recognises that despite cut backs in certain areas of renewable energy, other sectors including solar pv have continued to go from strength to strength in the UK. Ever since the introduction of the feed-in tariff in April 2010, investment in solar energy has rocketed with an impressive uptake in solar panels taking advantage of the healthy profits to be made. With regards to efficiencies, the head of HSBC’s climate change centre of excellence Nick Robins stated,

“The learning curve has accelerated during the crisis, particularly in solar.”

The UK solar feed-in tariff, legislation which guarantees fixed, premium rates for units of energy either consumed or fed back into the national grid is designed to incentivise investment in solar energy, traditionally expensive to set up. Already the uptake in solar on the back of the tariffs has exceeded expectations with over 10,000 panels installed so far. As was predicted, the uptake in solar along with the growing competition in the UK market has caused prices to fall a little bit closer to ‘grid parity’, the holy grail of renewable energy. According to energy expert Anthony Froggatt, Chinese manufacturing volumes have led to grid costs being the equivalent of nuclear in the US.

Bringing together members of the US solar industry in Washington, Green Power Conferences have announced that between 9-10 of September the US Solar Forum will give guests the opportunity to discuss the key issues of the moment in the PV industry.

There seems to be a growing support for the argument that grid parity will become a reality within the near future with analysts in the UK suggesting that it could happen as soon as 2013. The Washington Solar forum will give attendees the chance to discuss the ideas of a viable photovoltaic industry and the possibility of solar generated electricity reaching the same price of electricity generated by non-renewable means in the US.

As well as offering a unique networking opportunity for guests, the forum will also see a number of expert, high profile speakers give a number of presentations regarding the future of the solar industry in the United States. Such speakers will include:

• Gabrielle Giffords, U.S. Representative, D-AZ
• Jigar Shah, Founder, Sun Edison, USA
• Julia Hamm, Executive Director, Solar Electric Power Association, USA
• David Arfin, Vice President, SolarCity, USA
• Rainer Aringhoff, President, Solar Millennium, USA
• Matt Cheney, Chief Executive Officer, Renewable Ventures, USA
• Carrie Cullen Hitt, President, The Solar Alliance, USA
• Shawn Kravertz, President, Esplanade Capital, USA
• Nancy E. Pfund, Managing Partner, DBL Investors, USA
• John Woolard, Chief Executive Officer, Brightsource Energy, USA
• John Bartlett, Financial Analyst, U.S. Department of Energy
• Adam Browning, Executive Director, The Vote Solar Initiative, USA
• Jeanne Fox, President, New Jersey Board of Public Utilities, USA
• Nancy Hartsoch, Director, CPV Consortium and Vice President, SolFocus, USA
• Kevin Law, Chief Executive Officer, Long Island Power Authority, USA
• Arnold Leitner, Chief Executive Officer, SkyFuel, USA
• Brian Murphy, Chief Executive Officer, PrimeStar Solar, USA
• Mike Nedd, Deputy Director, Bureau of Land Management, USA
• William Nesbitt, Managing Director, Good Energies, USA
• Scott Stephens, Solar Energy Technology Program, U.S. Department of Energy
• Darren Van’t Hof, Vice President, US Bancorp Community Development Corporation
• Sanjay Wagle, Renewable Energy Advisor, Recovery Act Team, U.S. Department of Energy

Jeremy Leggett, head of Solar Century has predicted that solar energy will reach grid parity with energy produced by non-renewable means by 2013, seven years ahead of previous predictions. Speaking at yesterday’s ‘We Support Solar’ event, Leggett announced that with recent support given to the solar industry in the UK through legislation the price paid for solar generated electricity will reach a parity with coal produced electricity.

The concept of Grid Parity has always been the ‘holy grail’ within the solar industry with solar supporters extolling the need for government action in order to ensure that the photovoltaic (PV) industry evolves into a viable competitor to fossil fuel producers. Detractors of the notion of a possible grid parity have traditionally asserted that solar will never compete with fossil fuel energy on price because of the costs associated with installing and maintaining PV plant.

However, the recently passed feed-in tariff legislation which offers solar energy producers a premium rate for energy they feed back in to the national grid will prove to be extremely effective in attracting investment in the solar industry. Speaking about the solar naysayers among the energy industry Jeremy Leggett commented,

“The chief executive of British Petroleum said that solar will never be economically viable without technological breakthroughs. He is going down the road saying that, we say it will be on cost parity with electricity by 2013. We are going to find out who is right.”

Certainly with recent reports from America that two-thirds of the United States will achieve grid parity by 2015, the future seems to be mapping out truly in favour of solar energy on both sides of the Atlantic, a situation which won’t go unnoticed by investors looking for long term investment yields.

Also at the event, Joan Ruddock, acting as spokesperson for the Department of Energy and Climate Change (DECC) announced that the government would strive to reach its carbon reduction targets through a specific focus on “small-scale renewable technologies, such as solar PV”, going on to add,

“We know that it is not just a case of generating ideas and many of you have pushed for greater incentives, so we are introducing what is going to be called a clean energy cash back, that is much easier for ordinary people to understand than a feed-in tariff for people in these difficult economic times and it will be important to encourage people at this time.”

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.”