In recent months there has been much written and said about feed-in tariffs and the affect they will have on the renewable energy industry. As far as the self-builder is concerned the only thing that can be said with certainty is that we don’t know.
We don’t know what tariff model will be adopted (the Government’s consultation period does not end until mid October) and we don’t know what tariffs will be paid. We are reasonably sure that tariffs will vary but we don’t no much they will vary with different technologies or whether the tariff will be based on nominal capacity or actual production. We don’t know if these new incentives will presage a rush of interest and a booming industry or if they will fall short of exciting and leave the industry where it is. We don’t know if a booming renewable energy industry will bring the anticipated capital cost reductions as competition hot’s up or if the industry will choose to hold the prices and take more profit.
The one thing we do know is that renewable energy, even at domestic scale is now a commercial proposition and deserves the proper consideration of any commercial investment.
When we were getting next to nothing for the electricity we produced it did not matter too much what technology we installed. Now the technology matters a great deal, as does the capacity of the system, the actual production, the amount we can use on site and the amount exported. You would not invest in shares without careful consideration and the advice of an expert. Feed-in tariffs now mean that you have to do the same before investing in renewable energy. But the returns could make it all worthwhile.