The much debated, tweeted, blogged and indeed refreshing government legislation, the feed-in tariff, which is to become reality on April 1 could transform micro-generation from cottage industry to nationwide norm within the next few years according to Steven Harris. Harris, as head of low carbon technologies at the Energy Savings Trust (EST) believes that with the tariff legislation in place, the UK will be in good shape to see a large scale uptake of renewable technologies, something which he believes only a few years ago would have been incomprehensible.

“The poor old cottage industry of renewable energy will not know what’s hit it. People could be forgiven for waiting to install these technologies up until this point, but once the tariff comes in, things could change rapidly,” states Harris who certainly knows how difficult it has been to bring about a change in attitudes towards the viabilty and importance of green technologies.

Harris who along with his colleague Bill Dunstar created the BedZed village project featuring carbon neutral housing in the Surrey commuter town of Wallington ten years ago can easily recall the derision which green ideas were met with at the time. The project which was shortlisted for the Stirling Prize in 2003 highlighted the potential feasibility of sustainable materials and carbon neutral building at a time when such ideas were far from the mainstream. Harris recalls,

“It’s amazing when you sit in meetings now; people are saying exactly the same stuff that was laughed at when we were starting BedZed. Back then, things such as using reclaimed materials, sustainability assessments, local sourcing, having an ecological footprint… they were just not on the construction agenda, let alone the housing agenda.”

With the introduction of the feed-in tariff at the beginning of next month the situation has changed dramatically for micro-generation projects such as BedZed pioneered by Harris and Dunstar. The tariff will offer small-scale generators of green energy guaranteed, premium rates for energy fed-back in to the national grid and will thereby seek to offset the obvious costs involved in installing renewable technologies. With annual returns of £500 expected for households with solar PV installed, the industry is hopeful that the solar industry has the potential to take off with the backing of the tariff.

Steven Harris certainly believes that solar micro-generation could become widespread with the tariff mechanism incentivising investment and see the BedZed project become reality within the next decade.

“Solar technology has really moved forward. In China, it’s illegal not to put thermal solar on your roof, but they have the advantage of a totalitarian state. The fact that they have to manufacture panels for billions of people has really driven down the cost of solar. I know when we first started BedZed, the payback on a panel was around 75 years; now it’s about 12.”

The Scottish First Minister, Alex Salmond has warned against investing heavily in nuclear energy explaining that it would divert much needed funds away from clean, renewable sources of energy. The Scottish Minister has asserted the need for a coherent investment program in green energy sources, both as a means of slowing climate change and helping the government to meet its green target, which in Scotland is producing 20 per cent of its energy from renewable sources by 2020.

Replying to questions in the Scottish Parliament, Alex Salmond stated,

“Anything you invest – and it will be billions – in nuclear power is billions taken away from clean technology and in renewable technology. We have great prospects in our renewables sector – I think that is a huge priority.”

Although there is a general acceptance that renewable sources will be essential for future energy production, nuclear is often considered to be a very real and viable alternative to fossil fuel production. Lord Adair, Chairman for the Committee for climate change remains an exponent of nuclear energy as a possible solution to future energy production but there has been a general move away from nuclear of late partly due to concerns over safety. This was highlighted by the recent Bradwell Power Station case whereby it was found guilty of leaking radioactive material from its reactors over a period of fourteen years.

The Energy Bill of last year sets out provisions for the introduction of a feed-in tariff in 2010 as a means of attracting investment in renewable energy production. It is believed that once there is a coherent tariff system in place in the UK, investment in green energy will become much more widespread and more attractive compared to nuclear which is often criticised for being both unsafe and expensive.

Financial consultants Ernst & Young have rated the UK as the fifth most popular country to invest in as a result of the Energy Bill which was passed in November according to their Renewable energy country attractiveness indices.

Britain’s rise to joint fifth with Spain has been attributed to recent legislation which specifically sets out provisions for the introduction of Feed-in tariffs by 2010. Feed-in tariffs are fundamental to investors as they guarantee a premium fixed rate for energy fed back into the national grid by small, renewable energy producers.

Also, acting as an important stimulus for investors is the falling value of Pound Sterling which is predicted to reach parity with the Euro in the new year.UK renewable projects increasingly expensive as imported technologies from Europe continue to rise as a result of the exchange rate.

“The falling value of the pound is making

“The declining price of oil is compounding the problem by reducing project revenues as wholesale energy prices fall, resulting in many projects becoming uneconomical. It is unlikely that falling commodity prices such as steel and copper will compensate enough” predicts Head of renewable energy at Ernst & Young, Jonathan Johns.

The recent Renewable energy country attractiveness indices saw Germany reach first position as a target for investors and is now seen as the leading light in terms of viable renewable energy innovations.

Friends of the Earth (FOE) along with other environmental groups, companies and trade unions have given their backing to the proposed introduction of feed-in tariffs when the government’s Energy Bill is debated at the end of the month. Supporters of the bill maintain that feed-in tariffs will be absolutely vital to the UK meeting green targets as they will offer an attractive incentive to renewable investors. The principle of feed-in tariffs is that the government will pay a fixed rate for energy fed back into the national grid by small, renewable energy producers, and has been highly successful around the globe, no more so than in Germany.

However, FOE have stated that it is the essential that the UK come up with a feed-in tariff which sets out a clear timetable for implementation in order to attract investment in the initial stages:

“A strong feed-in tariff is desperately needed to give homes, businesses, communities and local authorities a financial incentive to fit renewable energy systems and play a major role in tackling climate change.

“Unfortunately the government’s woolly proposals are fundamentally flawed and will not guarantee that an effective scheme will be introduced. Proposals for a feed-in tariff must be strengthened to ensure that the UK reaps the benefits of its abundant supply of clean, green energy” asserts Ed Matthew, spokesman for Friends of the Earth.