The Energy Savings Trust has released a report that the installation of solar panels on residential properties would significantly increase the price that house buyers would be willing to pay for those properties. With the government’s announcement that the clean energy cash back scheme will be introduced in April 2010, a great deal of interest has been stirred in the viability of solar power and will undoubtedly see an increase in the uptake of photovoltaic (PV) equipment .

The clean energy cash back scheme, essentially a feed-in tariff will offer homeowners with solar kits premium rates for surplus energy which they feed back in to the national grid. The legislation will oblige the energy companies to purchase the renewable energy units at inflated prices, the costs of which will be spread across the consumers.

The survey found that out of a total of 2,700 people who were questioned, over half answered that they would be interested in looking into whether solar panels would be suitable for their homes. Similarly, a third responded that they would be willing to pay more for a house with a solar installation. These findings would suggest that despite the initial costs of installing solar panels, the cash back scheme along with the fact that they will add value to your property will go to add financial viability to a renewable energy option which, in the past has been considered too expensive to consider.

Regarding the findings, Chief Executive of the Energy Savings Trust, Philip Sellwood stated,

“It seems Britons are willing to pay more for a home with a renewable energy source so investing in a solar panel or a wind turbine could add to the resale value of a property and be as attractive to house hunters as a new kitchen or solid wood floors”.

While high costs still remain a barrier to renewable installations, the government legislation which will be implemented in 6 months will enable homeowners to cash in on their investments in the long term.

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.

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.”

A poll released this ahead of the World Climate Day on Friday revealed that the British public has a keen concern regarding action to tackle climate change. The poll, carried out by Christian Aid illustrates a general consensus of concern and awareness of government policies with regards to matters concerning meeting climate change targets.

With the UK government passing the Energy Act and establishing the Department of Energy and Climate Change, they have taken important steps to both meet their climate change objectives and revitalise the economy through the nurturing of a new green economy. Certainly, with the European elections at the fore, many of the electorate are taking a much closer look at the green policies of prospective political parties. Indeed, the results of the survey were thus,

·          77 per cent believe the UK government ought to do more to reduce carbon emissions

·          57 per cent say a political party’s climate policies would influence how they vote

·          70 per cent want the UK government to take a leading role in international climate change negotiations

·          90 per cent have taken steps to reduce their own carbon emissions

With these results in mind, the importance of recent climate change legislation affecting the solar industry will be even more in focus. The feed-in tariff provisions set out in last years Energy Act will become a reality next year as a mechanism designed to kick start investment in the fledgling industry.

With the UK government going through a consultancy process to determine the optimum tariff structure to energise the much hyped green economy, the YouGov report findings such as those above will offer a stark reminder that the public are now fully aware of the importance of government action in determining the success or failure of the UK solar industry.