Solar energy supporters urge 10p rise in tariff

Addressing the committee on Energy and Climate Change, Derry Newman, Chief Executive of the UK Photovoltaic Manufacturers Association, re-iterated the need to increase the proposed Feed-in Tariff (FiT) rates by 10p to boost the solar industry. While FiTs are effective in boosting the UK’s solar market, the present planned tariffs for solar PV are too small to encourage investment.

Under the current Department of Energy and Climate Change (DECC) proposals, the solar PV’s FiT rate climbs at 36.5p/kWh, the highest of all proposed energy sector tariffs. MP Colin Challen questioned if it was fair for the solar industry to ask for higher PV subsidy in spite of it already receiving the highest rate.

Jeremy Leggett, both Representative of We Support Solar Campaign and Chairman of SolarCentury, a solar panel supplier for residential homes, argued that compared to the invested capital of the nuclear industry, the solar energy sector spends more but gets lesser rate of return.

Another issue which was tackled at the committee was the difficulty of new investors to avail the subsidy, a complaint that has been put forward by several firms since the financial incentive talks started in July 2009. Howard Johns, Chairman of the Solar Trade Association, informed that those early adopters have mounted solar systems in their homes and have planned of selling the electricity to their neighbours, but so far, they are not qualified for the scheme.

Another vital message highlighted in the committee was that the government should support solar PV ahead of other technologies, arguing that it can grow and supply power more than the UK’s forecasted 3.5 per cent electricity demand by 2020.