Thanks to an initiative from the Department of Energy and Climate Change due to be launched on 1 April 2010, the UK is expecting to boost demand for solar energy on an unprecedented level. The proposa…
Thanks to an initiative from the Department of Energy and Climate Change due to be launched on 1 April 2010, the UK is expecting to boost demand for solar energy on an unprecedented level. The proposal, known as the feed-in tariff, suggests that Britain is taking the first steps towards mass implementation of domestic renewable energy, despite some scepticism and reports to the contrary. In an announcement made in February this year, Ed Miliband, the energy secretary, confirmed a cash-back scheme in which businesses and private citizens can receive up to 40p for every kilowatt-hour of electricity generated in solar panels and photovoltaic (PV) installations of up to 5 megawatts. According to estimates, under the tariff, a typical household panel could deliver about GBP 900 a year in cash back (a return of around 10%) as well as a saving of GBP 140 on electricity. Further incentives include tax-free proceeds, and a new pay-as-you-save scheme, funded by renewable energy loans from banks and supermarkets. A YouGov survey showed that 71% of homeowners would consider installing green energy systems if offered sufficient financial incentive, while Miliband predicts that 10% of the population will have installed renewable energy technology in the next ten years. In Germany, feed-in tariffs have been in place since 2000, resulting in PV panels being installed in 130,000 homes each year, while a similar success has been seen in California, where a scheme was implemented in 2008. Critics have suggested the return on investment is too low, and that higher subsidies must be offered, but the Spanish industry is now experiencing bust after boom, caused by the market being saturated by subsidies which were too generous. The UK must learn from these successes and failures if it wants to establish a UK industry and attract international investment. In the North East, in County Durham, glassmaker Romag is expecting a surge of interest in its PV glass, PowerGlaz, and forecasts an increase in sales of 60% year on year. The company is also investing in a photovoltaic installation at its own headquarters, which will become the largest of its kind in Europe, as well as creating a specialist centre to train people across the manufacturing industry in sectors including development and planning, electrical professions and roofing. The region has also made great progress in setting out the foundations for research and development for industry. This includes the Newcastle Photovoltaics Application Centre at Northumbria University, two centres of excellence, the New and Renewable Energy Centre and the Printable Electronics Technology Centre in the region. The latter estimates that up to 250 jobs locally and 1,500 jobs nationally could be created thanks to a GBP 12 million grant from the government and GBP 8 million from One North East to continue its pioneering work aimed at establishing the UK as the international leader in the field. In November, the North East also hosted Solar Flair 2009, the national PV conference, aimed at demonstrating the business opportunities that will be created by the new industry to a wider cross-section of organizations. One of the companies that has understood this potential is Romag, which has launched a canopy that uses PV glass to generate the charge to power an electric car. The feed-in tariff will serve to boost the UK PV industry, providing a huge boost to businesses across a range of sectors, and delivering a step change in the country“s domestic generation capacity.