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The UK renewables policy has been for many years slightly weak in comparison to neighboring countries. However, the future is starting to look bright, especially for solar energy. Former Prime Minister Gordon Brown oversaw the introduction of the UK feed-in tariff, named by his elected organization - the Department of Energy and Climate Change (DECC) - the ‘Clean Energy Cashback’ scheme. Now that the hung parliament is in place - made up of the Conservatives and the Liberal Democrats - the future of the UK renewable energy market is susceptible to change. However the introduction of the FiT is certainly a step in the right direction.
Throughout the policy section of the Solar Power Portal you can read about the Clean Energy Cashback scheme (FiT), find out more about the DECC, read up on what makes companies in the UK eligible to install your solar systems and take a closer look at other useful contacts in the forthcoming renewables industry.
David Cameron insists that he wants to see greater investment in renewable energy in the future, as a means of transitioning from fossil fuel energy sources. Cameron has stated on more than one occasion that he doesn’t see nuclear power as a long-term energy solution for the UK.
David Cameron has long been an advocate of green energy and a supporter of the feed-in tariff mechanism as a way of driving investment in new technologies and strongly supports the EU target of generating 20% of energy from renewable sources by 2020.
The Liberal Democrats have set the target of producing 20% of all energy from renewable sources by 2020 with further targets of 50% by 2050. Nick Clegg does not believe in the use of nuclear power and wants to invest the money for building new nuclear facilities in renewable energy plants.
Now that these two forces have come together, we can expect to see a fair amount done for UK renewables. Keep an eye on SPP's news section to stay up to date with all of the policy changes.
The Department of Energy and Climate Change (DECC) was created in October 2008, to bring together:
The UK needs to secure clean, safe, affordable energy to heat and power homes and businesses. Creating a low carbon and resource efficient world means making major structural changes to the way we work and live, including how we source, manage and use our energy.
DECC exists to take the lead in tackling these challenges.
The DECC reflects the fact that climate change and energy policies are inextricably linked – two thirds of the UK’s emissions come from the energy it uses. Decisions in one field cannot be made without considering the impacts in the other.
DECC's seven Departmental Strategic Objectives are:
The Clean Energy Cashback scheme, or feed-in tariff (FiT), became available in Great Britain on 1st April 2010, yet they aren’t currently available in Northern Ireland - although this is under review.
Under the scheme energy suppliers have to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity panels (PV) or wind turbines. This is compulsory for six of the bigger suppliers.
The scheme guarantees a minimum payment for all electricity generated by the system (generation tariff), as well as a separate payment for the electricity fed back into the national grid (export tariff). These payments are in addition to the bill savings made by using the electricity generated on-site.
Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan), if this is the option you have chosen. Since the introduction of this scheme several free solar companies have also come into play. You can read about these by looking in the SPP news section.
This cashback calculator from the Energy Savings Trust demonstrates how purchase price and loan can impact payback times.
The scheme covers solar electricity (PV) (roof mounted or stand alone) systems which are up to 5MW in size.
The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system and the installer were certificated under the MCS scheme.
You will qualify for the full FIT payments if:
It is installed after 1st April 2010 using an MCS* certificated product and installer.
