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Continued uncertainty on Feed-in Tariff bad for all of us

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Posted on: 11.01.12 Category: Green Energy News, Feed-in Tariff,

Feed-in Tariff

By Ed Gill, Head of External Affairs

The situation with the Feed-in Tariff subsidy for solar generators continues to be murky.

As the Government prepares this Friday to appeal against the court’s decision to rule its 12th December cutoff date invalid, the industry remains in hiatus, unable to advise customers on what FIT rate, if any, they can expect to receive depending on when they register.

The Feed-in Tariff is the best tool we have for delivering the kind of decentralised energy system we need in this country to tackle the energy challenges we face, particularly the lack of control we have over volatile global fossil fuel markets. The continued uncertainty around both short and long-term rates that new entrants to the scheme (after 11 December) can expect is causing damage to our industry and potentially to the wider economy.

Like Greg Barker, quoted in The Guardian this week, “I am itching to move on to solutions”. All we have seen for the scheme since the review started in October are problems.

Consumers and investors alike need accurate information to make informed decisions, and there is currently a vacuum. It is essential that the long-term future of the scheme is mapped out by the government, so we can all get on with the business of increasing the amount of home-grown renewable energy we produce as a nation.

Innovative, successful businesses, like Good Energy and the reputable solar PV installers, who are set to play a major part of the future growth of the economy, are being hampered by court cases, red tape and a jittery marketplace, where no decisions can be made. Because of this uncertainty we cannot offer clear, sensible information to households interested in investing in solar PV, despite passionately believing that it is an essential part of our country’s energy future.

Greg Barker is asking for consensus. That is essential.  But what we need right now is certainty. We look forward with great interest to the results of the consultation promised at the end of the month and hope they deliver a clear mandate for this popular scheme, which sadly has been a victim of its own success.