After many months of campaigning on behalf of our microgeneration early adopters for a fairer deal on the Feed-in Tariff, at last we’ve got an answer from Chris Huhne, the Secretary of State for Energy and Climate Change. Unfortunately it’s not the answer we were hoping for.

Following a query on the issue from Caroline Lucas, MP (Green Party) during Energy & Climate Change Question Time last week, Chris Huhne said: “I considered the issue carefully on a value-for-money basis, and I am afraid that the advice from my officials was clearly that we cannot introduce retrospection in such cases because it does not represent value for money. We are trying to introduce new schemes in future, and therefore, sadly, the only incentive and payback that people get is the warm glow of being pioneers.”

This was disappointing given the level of support our campaign received from both Lib Dems and Conservatives when they were in opposition: 97 MPs signed an Early Day Motion calling for pre-July 2009 early adopters to be rewarded equally for their hard work and innovation. (Under the current Feed-in Tariff scheme those who installed their technology before July 5th 2009 receive a much lower payment (9p a unit) than those who were accredited after that date (up to 41.3p)). The then Conservative opposition committed, in writing, to reviewing Government policy in this area and 80% of Liberal Democrat MPs, including leading members who are now in Government, backed the campaign.

As our founder and CEO, Juliet Davenport, told the Guardian yesterday: “The UK microgeneration industry owes its existence to these early adopters who installed their own generation equipment because they wanted to make a difference to climate change. Many invested their life savings in such schemes because they believed it was the right thing to do – and they deserve to be recognised and rewarded for their entrepreneurial attitude, not penalised.”

Juliet revisited the issue in an article in Business Green last week which highlighted that many of those eligible for Feed-in Tariff still haven’t registered and could be in danger of missing out.

Good Energy will therefore continue to pay microgenerators on our HomeGen scheme who had their systems installed before 1st February 2010, and aren’t eligible for the higher Feed-in Tariff rate, 15p a unit until April 2011.

Chris Huhne’s decision now heightens the debate around the future of the Renewable Heat Incentive (RHI). Juliet Davenport added: “Now we know the Government isn't going to do anything on the feed-in tariff for the early-adopters, we need a prompt decision about the RHI. In view of the Government’s decision, early-adopters of renewable heat will likely be deterred from any new investment in case they get the same treatment.”

Microgeneration has a key role to play in helping the UK reach a 100% renewable future by 2050, and we hope the Government will do more to encourage and aid – rather than obstruct – our community of homegrown energy pioneers. 

Read the Government’s official response to the decision here.