News Article
Ownenergy Releases FiT Report
Ownenergy reports on FiT impact in the UK market
Ownergy, a service provider of renewable energy systems, has published a report on the first six months of Feed-In Tariffs uptake in the UK since the scheme went live on April 1st. The report shows that the market is developing in line with initial forecasts. It also provides powerful evidence that Government fears about Feed-In Tariff eligible installations being out of control are unfounded.
The key findings are as follows:
• 32MW of installations to date means the scheme is on track to meet the first year targets of 100MW
• The number of installations to date will mean just over a 1p increase to the average electricity bill
• Majority of installations are for residential solar PV
• Interest from the commercial market has been modestly encouraging and is predominantly for installations where the generated power can be used onsite,is in line with the objectives of the scheme
• The 8% per annum average rate of return is adequate in some sectors but there are still a considerable number of barriers to entry that dissuade investors of all types
The report details the feedback from the industry that any cuts in the tariff rates would undermine investor confidence and dramatically reduce installation rates. This would mean that targets would not be hit, the current increases in job numbers would be reversed, and confidence in other subsidy schemes would be destabilised.
Philip Wolfe, Ownergy chairman and architect of the Feed-In Tariffs scheme in his former role as Director-General of the Renewable Energy Association, said: "The industry and Government should share my pleasure in the uptake of the Feed-In Tariff eligible renewable energy systems. The scheme is delivering exactly what it was meant to do in terms of a rapid increase in the number of installations, creation of jobs and increase in the amount of renewable energy generated in this country which has historically been pitifully low.
"But it is apparent that the scheme has a long way to go before we are in the enviable position of having to consider dampening enthusiasm through lower tariff rates as is happening in some countries in Continental Europe. Despite the best efforts of the industry, awareness of the Feed-In Tariffs is still low and there are still several barriers to entry.
"If the Government believes that an early review of tariff levels is required, it could not be more mistaken. To do so would stop investment in its tracks and undermine confidence not just in all renewable energy schemes but in other sectors dependent on a consistent regulatory regime.
"It must also be stressed that the Feed-In Tariffs is paid for through a levy on electricity bills and is not from public expenditure. As such, it can make no contribution to reducing the public sector deficit."
