Feed-In Tariff: great news for UK PLC.
Feed in tariff gets thumbs up from SIG
Published: 03 February, 2010
BRISTOL: SIG Sustainable Solutions has welcomed the publication of the Government's Feed in Tariff (FIT), designed to incentivise homeowners and businesses to adopt micro-generation to create green electricity. The FIT kicks in on April 1 2010 and will pay investors for the electricity generated from low carbon energy sources.
The UK currently generates around 5.5% of electricity from renewable sources and that will need to increase to around 30% in order to meet the 2020 target of 15% from renewables for all energy. The FIT is a vital stepping stone to achieving this goal.
Beneficiaries of the scheme could be £1000 better off each year as consumers people will be paid up to 41.3p/kilowatt hour for the electricity they generate. This will provide a return on investment of up to 10% in some cases.
Tariff levels are Retail Price Index (RPI) linked and are income tax free.
Paul Roche, director of SIG Sustainable Solutions said: "The Feed-in-Tariff is great news for UK PLC and for the environment. Today's announcement means that micro-generation, such a photovoltaic panels offer homeowners and businesses a realistic, cost-effective, simple method of generating clean electricity while saving money.
"The FIT provides a strong kick-start for the PV sector in the UK, which is potentially worth £27bn, making it one of the biggest potential growth areas of green technology.
"FIT is great news for the construction industry, too. Incentivisation programmes across Europe, especially Germany, have proved to be a massive success and provided a boost to the roofing sectors, predominately responsible for installing PV panels. The anticipated increase in demand for PV cells, following this announcement, means that UK companies have the opportunities to skill-up in the manufacturing, installation and promotion of micro-generation."
He warned that FIT must be as simple as possible. "Too often, despite best intentions, 'going green' can appear complex and can deter those who require support. The FIT programme must be easy to set up and provide an obvious way of showing how much money and carbon has been saved."