The recently announced early review of the UK’s feed in tariff program has created jitters in the solar industry and among investors, prompting a warning from the European Photovoltaic Industry Association.
The EPIA has requested the government “take all necessary caution” in order to avoid destabilising the industry and communities looking to invest in solar energy. The organisation says the current uncertainty could put many projects at risk and severely hamper the market before it has properly developed.
The EPIA says forecasts for 2011 show 17,000 people will be employed locally by the PV industry and the organisation is willing to provide any advice to the UK Government based on its experience of feed in tariff reviews.
Solar feed in tariffs have proven time and again to play a crucial role in renewable energy uptake, particularly by households. These schemes, that pay a premium for solar electricity generated by installations owned by households and companies, have been shown to be sustainable if correctly implemented.
The stimulus feed in tariffs generate not only help reduce carbon emissions, but assist the industry in gaining a foothold in a scenario where heavily subsidised fossil fuels have their claws well and truly sunk in. The rapid uptake of solar power systems has a long term effect of increasing competition and bringing down the price of components, to the point where grid parity is achieved and government assistance will no longer be required. However, to put brakes on investment through uncertainty or policy backflips can greatly delay that day from arriving.
