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Solar treachery!
Reporter: Martyn Torr
Date online: 14 December 2011
Company blasts tariff cut - but the future remains sunny
AN Oldham solar-energy company has described the decision to drop “feed-in” tariffs — money paid for supplying energy back to the grid — as “an act of treachery”.
Wayne Brierley — managing director of local renewable energy company Greenteam Renewables Ltd in Lees Road, said: “When the Government announced its proposals to cut feed-in-tariff incentives it sent major shock waves around the solar industry.”
Mr Brierley, who has invested £100,000 in his Greenteam Renewables venture, added: “This seems to be very short-sighted and extremely unjust for a new industry that came into being because of Government encouragement.
“For the Government to now turn on that industry for being too successful looks like an act of treachery that will undermine confidence in all future Government-led environmental initiatives.
Mr Brierley described the Government reasoning for its “huge U-turn” as nonsense.
On October 31 the Government launched its consultation on feed-in tariff incentives for photo-voltaic installations. The consultation was due to run until December 23 with the results expected to be announced early in 2012.
Out of the blue the Government announced a huge reduction in tariffs — an arbitrary decision imposed well ahead of the consultation deadline.
For a typical scheme of less than 4KWp the Government is reducing the incentives from 43.3p/kwh to 21p/kwh, applicable to installations registered as complete as of Monday.
Mr Brierley said: “Despite the initial doom and gloom there is still a bright future for photovoltaic installations.
“Under the old regime for feed-in-tariffs investors were easily making between 10 to 15 per cent returns on their investments. The proposed feed-in-tariffs are still likely to make a return of up to 10 per cent, which is fantastic when compared with bank interest rates and other investments.”
He believes the Government is right to link incentive payments with overall energy performance adding: “As we are able to offer our customers a one-stop shop for energy generation and energy efficiency our order book has remained strong.”
The showroom at the junction of Lees Road and Cross Street offers information on all aspects of green technology — photo-voltaic, ground and air source heat pumps, solar thermal, hydro and wind generation.
Comments
Why is removing massive subsidy from overpriced items shortsighted? Why should everyone pay higher utility bills so a small number can get a freebie system and companies can cash in?
The tariffs had to be cut, and they rightly have.This move simply exposes yet another Labour mess of pouring money into schemes for the sake of it.
Within two years the cost of the systems will fall, so this move simply delays the take up of systems rather than wipes out demand.
The problem with the Solar PV market was and still is the fact it was taken advantage of by the people with money. Large fields filled with PV panels and massive paybacks meant there was only one winner in this field and again, it's made the rich, richer and the poor left to live in hope. I work in the renewables industry and when you look at the amount the government initially earmarked for this scheme to what they have actually given away, you can see they had no choice but to reduce it!!
Have Your Say
i agree. its very shortsighted what the government did. but its like anything thats successful. they will want thair share of the success. so thats what they'll be getting out of it.
it never lasts forever.
although with new standards in building regulations this now actively encourages builders to use solar and other renewable energys in building projects.
so there sould always be a market for them in the future.
By fedupoldhamer @ 14/12/2011 16:39:19