The UK has a goal of achieving an 80% reduction in carbon emissions by 2050 and the 2009 EU Renewable Energy Directive sets a binding target of achieving 20% of the EU’s energy consumption from renewable sources by 2020. The UK’s share of the EU target commits the country sourcing 15% of its electricity via renewable energy by that year.
In a step closer to rolling out feed in tariffs for small scale renewables in the UK, the British Government has released a document (PDF) entitled “Consultation on Renewable Electricity Financial Incentives 2009”.
In the foreword, Minister of State for the Department of Energy and Climate Change, the Rt Hon Lord Hunt of Kings Heath OBE, states that “feed-in tariffs will open up renewable energy generation beyond the traditional energy companies. It will enable communities to come together and invest in generating renewable electricity. It will make it easier for householders and business to finance their own electricity generation. It will help us all play our part in renewing our electricity supply.”
Lord Hunt believes that while climate change is a threat, tackling it brings the opportunity of creating a new green economy and that feed in tariffs will provide the financial framework for ensuring that opportunity is realised.
The UK is considering a gross feed in tariff model that pays a premium price for every kilowatt generated by a system. In Australia, the most common program, with the exception of the ACT, is based on a net model where only surplus electricity exported to the mains is paid the premium rate. While net feed in tariffs do help boost solar uptake, it has nowhere near the positive effect of gross feed in tariffs.
Under the UK program, owners of home solar power systems would receive up to AUD 62 cents per kilowatt hour generated, guaranteed for 25 years.
The UK feed in tariff program is expected to commence in April 2010
