Feed-in Tariffs: Expert Views

“Interest in solar is set to accelerate beyond anything we have ever known in the UK”

H&R talks to Jeremy Leggett, founder of Solarcentury and a leading green campaigner, about the impact of feed-in tariffs.

How do you think FiTs will affect interest in solar panels?
Home energy generation and associated jobs have been given a huge boost. The Government’s financial incentives for homes, communities and businesses to generate clean electricity marks the start of a solar revolution in the UK. For the UK to reach its carbon reduction targets, people have to be given the opportunity to generate their electricity in a rewarding and accessible way — the scheme makes it possible. Interest in solar is set to accelerate beyond anything we have ever known in the UK — simply because it’s a savvy investment. Anyone who is concerned about saving money and rising electricity prices is likely to look into solar power now.

Are FiTs the scheme that you’ve been hoping for?
The FiT rate is certainly sufficient to increase demand, as the return on investment is so much better than a bank account at above 7%. This is the key to a successful tariff. It’s also a tax-free income that rises in line with inflation, so no hidden surprises with a guaranteed return over 25 years. (solarcentury.co.uk; Read another interview with Jeremy Leggett).

"Some early adopters are frankly incandescent..."

H&R spoke to Cathy Debenham, founder of energy advice website yougen.co.uk, for her views on feed-in tariffs.

You’ve got one particular issue with FiTs, haven’t you?
The big problem is that the scheme discriminates against the early pioneers of these technologies — exactly the people who have sent out positive messages about renewables. As they are excluded from the high rates, and are only going to enjoy a maximum of 9p per kWh if they transfer from their existing Renewables Obligation Certificate (ROC) scheme, they are really missing out. The Government has altered the playing field for them and we’ve had messages from people ranging from the resigned to the frankly incandescent.

But you must agree that FiTs are a generally positive thing?
Well, the level at which the Government has set the tariff means that the interest in renewables will be completely transformed. Anybody about to install renewables must surely be delighted.

"It's a well-designed scheme, and brings certainty"

Mathew Rhodes, MD of independent renewable energy consultancy Encraft (encraft.co.uk), welcomes the announcement of feed-in tariffs.

What is your initial view of the scheme?
We’re certainly glad to see the introduction of Feed-in Tariffs, at long last, and the tax incentives that come with it, which will mean the tariffs are worth 25-40% more to taxpayers. The Feed-in Tariff project is well designed, and forms a solid basis for future investment in renewable energy sources.

How do you think it will impact on the viability of renewables?
It’s not just the monetary value of the Feed-in Tariffs that impressed us — it’s the certainty they bring. We particularly welcome the fact that Feed-in Tariffs are now guaranteed for 25 years and Index linked, so that potential purchasers can make financial decisions for the long-term. This will make the installation of renewable energy sources a sound and viable decision rather than speculation, and open the market to the average family rather than just the dedicated environmentalist. That’s good news for the growing solar manufacturing and installing industry in the UK, and of course for householders.

“Self-builders now have to give it serious thought”

H&R's eco expert Tim Pullen's day job is to advise homeowners on installing renewables. He shares his views.

What does it all mean for homeowners?
In short, renewable energy has moved from a marginal activity to a commercially viable, even profitable, option. The Government is even moving towards low-cost loans to support homeowners wishing to install equipment. The probability, and prediction, is that 100,000s of systems will be installed in the first few years of the scheme. Renewable energy will without doubt increase the value of the house and the impact of this, together with the requirement for zero-carbon homes from 2016, will be to drive forward low-running-cost housing. Self-builders now have to give renewable energy serious consideration — if they haven’t already. A house built to current Building Regulations standards with no renewable energy could, according to energy price comparison companies, cost up to £5,000 p.a. to run by 2020. The means and the financial incentives are now in place to get that figure close to zero. (weatherworks.co.uk; Read Tim Pullen's blog)

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More information on Feed-in Tariffs:

• Feed-in Tariffs Explained
• Feed-in Tariffs: How They Work
• Renewable Heat Incentive

Further reading:

• Self Sufficiency: A Green Dream or a Reality?
• Saving Energy
• A Guide to Hydro Power
• An Introduction to CHP (Combined Heat and Power)