On-site & Micro News

Monday 02 February 2009

The solar lobby believes that its input is crucial to getting the feed-in tariff right

Renewable energy industry sectors have begun campaigning to secure the feed-in tariff levels they believe will be necessary to support their technologies in the domestic, business and community sectors, writes Rachel Johnson.

The drive has been kicked off by the solar sector, with a "We Support Solar" campaign, launched last week by the UK Solar PV Manufacturers Association.

The London based solar firm Solarcentury hand-delivered 500 letters to MPs in Parliament as part of the campaign, urging them to support solar technology ahead of the implementation of the new feed-in tariffs.

Feed-in tariffs are long-term contracts that will be offered to small-scale generators of renewable electricity to provide an incentive for householders, schools, hospitals and other organisations to invest in micropower technology.

The government gained the powers to set feed-in tariffs for renewable energy projects below 5MW in size through last year's Energy Act (see this New Energy Focus report).

The solar campaign, which has the support of 30 MPs so far, as well as campaign groups, solar manufacturers, businesses and industry bodies, is aiming to promote solar at a what it sees as a critical time for the development of the industry, with feed-in tariffs (FIT) expected to be launched by April 2010.

Michael Meacher MP, a former environment minister, gave his support to the drive, saying: "Ed Miliband's decision to introduce a feed-in tariff for solar PV and other small-scale renewable electricity technologies is potentially a real turning point for the UK solar PV sector. It gives the UK a vital new policy tool that should help to maximise the contribution from solar PV to our demanding renewable energy target."

"Coherent framework"

Former Energy Minister Peter Hain, also endorsed the We Support Solar campaign, but warned that the feed-in tariff must be implemented in the right way for it to work.

"The vast potential of solar PV in the UK is undeniable," he said. "But what the sector needs above all else is a coherent, long term-term policy framework that plays to the UKs strengths in building integrated PV and our solar design and engineering expertise."

Solarcentury told New Energy Focus that it is pleased at the government's commitment to the tariff, but said it believes the input of solar manufacturers will be crucial to setting the right rate.

Seb Berry, the firm's head of external affairs, said: "Ed Miliband is to be congratulated for showing real leadership on the feed-in tariff issue. This has been the vital missing ingredient in UK renewable energy policy and the new Secretary of State has moved quickly to address that.

"It is now essential that the government works closely with the solar PV industry to put in place appropriate tariff levels, so that we can play a full part in helping to deliver the 2020 renewable energy target," he added.

Feed-in tariff

The introduction of the feed-in tariff in the Energy Act last year (see this New Energy Focus story) has given rise to speculation in the whole renewables industry as a whole as to what the tariff should entail.

Alex Murley, small systems manager at the British Wind Energy Association, said: "We must have a feed-in tariff policy that rewards on-site generation as opposed to export, and a rate that recognises the industry of renewables manufacturers in the UK."

"It must be implemented in a timely manner, and in accordance with the Minister's assurances. The rate of award must be sufficient to reward the use of micro-generation and small systems," he added.

Other industry figures have been calling for recognition that not all systems work in all locations; and that accordingly the feed-in tariff rate must be universal for all technologies so that householders are encouraged to install the technology that is best for the site, rather than the one that has the highest financial incentive.

Speaking to New Energy Focus, Stephen Crosher, design director at small wind manufacturer quietrevolution, said: "The tariff should be set at a rate that encourages a sensible choice by the consumer. If tariffs are too high, the temptation will be for the consumer to place technologies on their site that produce relatively small amounts of energy.

"quietrevolution wish to put our turbines on sites that have good wind," he added. "We do not want hundreds of enquiries from the Warwick area, which despite poor wind becoming economic due to a high tariff level."

Rate

Mr Crosher agreed with the BWEA that the feed-in tariff should relate to the total amount of on-site generation rather than the amount exported to the grid, and went on to suggest a rate that might be suitable.

"Our view is that the first 25,000 kWh per annum produced should be eligible for a rate of 25p per kWh, the second 50,000kWh energy produced per annum should be eligible for a rate of 20p per kWh, and so on," he said.

Last month small wind-turbine manufacturer Proven Energy pledged its support for a 40p per kWh rate (see this New Energy Focus story).

However the rest of the industry has refused to be drawn on what rate would be acceptable for the feed-in tariff, although the BWEA told New Energy Focus today that it is currently analysing the options, and will be speaking out about it in the coming weeks.

In light of the end in June this year of the Low Carbon Buildings Programme Phase II (LCBP2), a scheme that funds the installation of renewables on public buildings, some parts of the renewables industry have also expressed concern about the funding gap between the LCBP2 and the implementation of the feed-in tariff in April 2010 (see this New Energy Focus story) .

The Renewable Energy Association (REA) has urged the government to address this gap, in regard to both the feed-in tariff and the renewable heat incentive, which Ministers are yet to lay out a definite timetable for.

The director general of the REA, Philip Wolfe, said: "It is vital that both tariffs are introduced early in 2010 and that the industry is supported in ramping up its capacity in the interim. The detail design of these tariffs will also be crucial if they are to optimise the contribution of the many renewable electricity, heat and biogas technologies that could participate."

However, the REA remained positive about the implications of the tariffs.

"The renewable electricity and heat tariffs introduced in the 2008 Energy Act could open up a whole new front in the war againt climate change and energy supply volatility," said Mr Wolfe. "For the first time energy users can contribute to a sustainable energy future alongside the suppliers - creating an energy generating democracy in the UK."

The Renewable Energy Association is running a special one-day conference on