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.

Lord Hunt has announced that the government will roll out smart meters over the next 10 years in order to help the UK meet targets set out in the Energy Bill. Smart meters are considered to be fundamental to the introduction of feed-in tariffs whereby the small renewable energy producers will be paid a premium rate for energy they feed back into the national grid.

Lord Hunt, announcing the roll out said, “This is a major step forward; no other country in the world has moved to an electricity and gas smart meter roll-out on this scale.

“We anticipate a period of around two years to resolve the issues and to design the full detail of a domestic roll-out. Our aim is then to ensure that the subsequent roll-out happens over a period of 10 years. This would see delivery of smart meters by the end of 2020 to align with our renewables targets,” added Hunt.

Conservative peer Baroness Wilcox, who prompted the government announcement on smart meters, welcomed the decision to introduce smart meters across the country, commenting,

“Smart meters are not only critical for energy savings at home but will soon be inextricably linked with the feed-in tariff. The government are as alert as we are to the fact that we in this country are very late in protecting our energy supply and energy usage, but this concession by them is a great step forward.”