Solar News

Wednesday 25 February 2009

According to new research carried out by the Centre for Alternative Technology, 23% of householders would "definitely" buy solar panels if the feed-in tariff rate was 50p or more

Householders would be influenced to buy solar panels if the feed-in tariff rate was higher than the grid electricity purchase price, new research has suggested.

A survey, carried out by a graduate of the Powys-based Centre for Alternative Technology (CAT), has revealed that 90% of consumers would "consider" investing in solar photovoltaics for their homes, if the feed-in tariff was 50p per unit or above.

And 23% of the 750 households surveyed said that they would "definitely" buy solar PV if the feed-in tariff was set this high, the research said.

The current purchase price for grid electricity is 15p per unit, with some energy suppliers paying solar owners up to 20p per unit for their exported electricity, including the value of green certificates.

Due to be published this summer, the survey was carried out in 750 households across the UK.

Mark Watson, who conducted the research, said: "Photovoltaic systems are one of the easiest renewable energy technologies to integrate in towns and cities, and as the survey results show, they are generally liked by the general public."

He continued: "Despite this, PV uptake in the UK is still very low compared to countries such as Germany. I was determined to investigate why. It's now clear that setting the feed-in tariff at the right level could really tip the balance of demand."

Secretary of State for Energy and Climate Change Ed Miliband has said that the government plans to implement the feed-in tariff in April 2010, but so far there has been little indication of what the rate will be (see this New Energy Focus story).

The government set the legislation for a feed-in tariff in the Energy Bill passed last year (see this New Energy Focus story), for renewables developments of up to 5MW.

Research

Of those surveyed by Mr Watson, 2% owned solar photovoltaics, and 92% said that the government has not done enough to promote the technology.

Respondents were put off by perceptions of a long payack, with 63% seeing seven years as a reasonable payback time, with the majority seeing the feed-in tariff as the best mechanism.

Solar firm Solarcentury, which is promoting the ‘We Support Solar' campaign, said the research proves that the feed-in tariff incentive was considered "far more significant than a grant", and suggested that it could be "teamed with a tax break or low interest loan similar to a student loan".

The research found knowledge of photovoltaics to be high, although 75% of respondents didn't think PV could generate sufficient electricity, despite understanding that PV requires only daylight to generate energy.

Seb Berry of the UK PV manufacturers group, said: "There is clearly a very high level of demand for solar power in the UK.

"Householders see it as a proven, reliable, effective and easy to install technology. ‘We Support Solar' has been launched to reflect this demand raise the profile of solar power in the UK, and ensure that the need for solar is met with appropriate action."

• The Renewable Energy Association is running a special one-day conference on March 26, looking at renewable energy feed-in tariffs, with energy minister Mike O'Brien set to deliver the key-note address. for more information and the chance to book, click here.