Feed in Tariffs

The Government have announced that feed-in tariffs (FiT) are to be slashed, increasing the payback time for customers.

The purpose of the FiT was to provide a much needed incentive for homeowners and businesses to install renewable energy sources on their properties.  The increase in demand would lead to a reduction in production costs due to economies of scale. The plan has always been to progressively reduce the feed-in tariff, in line with savings in upfront costs, but this sudden reduction will surely have a negative effect on a market which has not yet found its feet.

In Birmingham, a number of local companies have started installing solar panels, competing with much larger installers, such as British Gas and Eon. In an already competitive market, how will it be possible for smaller companies to compete with these giants, who will still be able to take advantage of discounts offered for bulk-buys? There are many stories of people getting solar panels through their energy company and finding that the installers have travelled from another part of the country, a baffling decision when promoting sustainability but doing little to support our local economy.

What does all this mean for those who would have considered getting the panels? Well, this depends on motivation. Those getting renewable energy sources because they want to reduce their carbon footprint will not be deterred. However, for most people there does need to be a financial incentive does, and as always, the fuel-poor will be hit hardest. In Birmingham we are lucky in that the council are currently working on rolling out a plan to enable homeowners to benefit from renewable energy with no upfront cost; see Birmingham Energy Savers for more details.

SusMo have spent a lot of time on the Green Streets project, which has enabled solar panels to be installed on Moseley CofE school, the allotments clubhouse, St. Mary's Church and Church Road Mosque. Ten percent of the FiT is going to go to CoRE, which will distribute the profit in community projects across Moseley and surrounding areas.  The review has meant the financial model originally developed has had to be revised, and less renewable can be distributed.

Sarah Napier