Government changes to Feed in Tariffs for solar installation
Early in 2011, the NHBC Foundation reported that the Government would restrict subsidies paid to solar power plants through the Feed-in Tariffs (FITs) initiative, to plants of less than 50kW capacity. At the time, this provoked great debate among the solar, and wider renewable, industry.
Now, the Government’s changes to FITs have gone even further – last week a 50% cut in subsidies for solar power was announced. Climate Change Minister, Greg Barker, quoted in the Guardian, said this is due to the declining cost of installation of solar panels, combined with higher than expected take up of solar.
Architecture and sustainability blog The Green Register has expressed concern that jobs in the solar industry will be lost as companies will no longer benefit from subsidies. On a domestic scale, The Guardian pointed out that the payback period on initial cost of installation for solar panels will almost double, meaning potential money saving will not be realised for up to 18 years for homeowners who install £10-12,000 of solar panels.
According to Energy Efficiency News, solar companies, housing associations and politicians have come together appealing to Prime Minister David Cameron to intervene over the changes. Environmental group Friends of the Earth is taking a more forceful approach, challenging the Government on the legal grounds that the date that cuts to FITs are due to come into play, 12th December 2011, is unlawful as the consultation period on the proposals actually closes two weeks after this.
Will changes to Feed-in Tariffs impact on zero carbon homes?
To achieve the Government’s zero carbon homes targets, renewable energy systems will play an integral role. The NHBC Foundation’s appraisal of the Feed-in Tariff scheme’s success in Germany in our report, Introduction to Feed-in Tariffs, shows the potential for the scheme to improve the energy efficiency of housing stock.
It is true that recently announced changes to Feed-in Tariffs are forecast to impact on the renewable industry, jobs and consumer spend on energy. However, it is still intended that they are leveraged to make houses more energy efficient.
One of the changes suggested in the Government consultation on FITs, according to a recent article in Inside Housing, is that payments will be restricted to homes that either have already achieved a minimum energy performance certificate energy efficiency C rating or have had all the work that can be done through the Green Deal energy efficiency scheme.
These changes, while no doubt spelling changes for the solar and housebuilding industry, strongly imply that the goal of creating more energy efficient homes has not been overlooked.
While the housebuilding and renewable energy industries wait to see the outcome of the Government’s proposed changes to FITs, and existing installation of solar systems continues, it is vital the quality of workmanship in installation remains high. NHBC Foundation recently published a Guide to installation of renewable energy systems on roofs of residential buildings, which contains best practice advice on installing solar, as well as PV and micro wind, energy systems to withstand the effects of wind and rain.
Early in 2011, the NHBC Foundation reported that the Government would restrict subsidies paid to solar power plants through the Feed-in Tariffs (FITs) initiative, to plants of less than 50kW capacity. At the time, this provoked great debate among the solar, and wider renewable, industry.
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| Cuts to FITs are forecast to affect the solar industry |
The impacts of the cut to FITs subsidies are still being debated among commentators on the topic.
Architecture and sustainability blog The Green Register has expressed concern that jobs in the solar industry will be lost as companies will no longer benefit from subsidies. On a domestic scale, The Guardian pointed out that the payback period on initial cost of installation for solar panels will almost double, meaning potential money saving will not be realised for up to 18 years for homeowners who install £10-12,000 of solar panels.
According to Energy Efficiency News, solar companies, housing associations and politicians have come together appealing to Prime Minister David Cameron to intervene over the changes. Environmental group Friends of the Earth is taking a more forceful approach, challenging the Government on the legal grounds that the date that cuts to FITs are due to come into play, 12th December 2011, is unlawful as the consultation period on the proposals actually closes two weeks after this.
Will changes to Feed-in Tariffs impact on zero carbon homes?
To achieve the Government’s zero carbon homes targets, renewable energy systems will play an integral role. The NHBC Foundation’s appraisal of the Feed-in Tariff scheme’s success in Germany in our report, Introduction to Feed-in Tariffs, shows the potential for the scheme to improve the energy efficiency of housing stock.
It is true that recently announced changes to Feed-in Tariffs are forecast to impact on the renewable industry, jobs and consumer spend on energy. However, it is still intended that they are leveraged to make houses more energy efficient.
One of the changes suggested in the Government consultation on FITs, according to a recent article in Inside Housing, is that payments will be restricted to homes that either have already achieved a minimum energy performance certificate energy efficiency C rating or have had all the work that can be done through the Green Deal energy efficiency scheme.
These changes, while no doubt spelling changes for the solar and housebuilding industry, strongly imply that the goal of creating more energy efficient homes has not been overlooked.
While the housebuilding and renewable energy industries wait to see the outcome of the Government’s proposed changes to FITs, and existing installation of solar systems continues, it is vital the quality of workmanship in installation remains high. NHBC Foundation recently published a Guide to installation of renewable energy systems on roofs of residential buildings, which contains best practice advice on installing solar, as well as PV and micro wind, energy systems to withstand the effects of wind and rain.
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