What is the future of the Feed-In Tariff?
Following the recent immediate closure of the Low Carbon Buildings Programme (LCBP) and the scheduled closure of the Energy Saving Scotland home renewables grant on 23 July, anyone looking into changing to renewable energy supplies like solar PV panels will be looking for commitment to schemes following the spate of grant closures.
The establishment of a Green Infrastructure Bank within the Energy Bill was announced as part of the Queen’s speech 2010 on May 25 to help support the funding of the transition to a low carbon infrastructure and should buoy the sector somewhat. The announcement claimed the body should be established as quickly as possible and should be given the resources to invest effectively in low carbon infrastructure.
Since the Coalition Government came into power in May they have made the following policy pledges concerning Feed-In Tariffs and renewables:
- We will establish a full system of Feed-In Tariffs in electricity
- We will seek to increase the target for energy from renewable sources, subject to the advice of the Climate Change Committee
- We will encourage community-owned renewable energy schemes where local people benefit from the power produced. We will also allow communities that host renewable energy projects to keep the additional business rates they generate
Will the Feed-In Tariff be reviewed or changed?
The Government has vowed to regularly review the Feed-In Tariff scheme to ensure that it is working accordingly. It will be reviewed every five years at the same time the Renewable Obligation is reviewed.
The first review is due in 2012. Any changes that are decided upon from that review will be implemented in April 2013. Along with changes to the tariffs, the list of eligible energy sources may also be extended at the reviews, too.