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'Clean energy cashback' too little to spur installations |
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21 Sep 2009, 8:59 PM
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A coalition of builder's groups say that around 30,000 jobs could be created in the renewables industry if householders were to be paid a higher rate for home generated electricity than that currently on offer.
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Under the government's "clean energy cashback" scheme, those who generate their own electricity from "green" sources will be paid for every unit they produce, in an attempt to make installing small-scale renewables more attractive.
But the Government's current proposals for the amount homeowners, businesses and other organisations will receive for electricity from solar panels are too low to significantly boost uptake of the technology, campaigners warned.
A failure to increase the levels of payment under the scheme will prove a "missed opportunity" for the environment and the economy, they said.
The Government has proposed a rate of between 26p and 36.5p per unit for the power generated from April 2010, but the "We Support Solar" coalition from across the building and solar industries, and backed by green groups and MPs, wants to see the incentive increased by at least 10p per unit.
They claim the extra funding would drive demand for 400,000 new solar PV units on homes over the next five years, creating thousands of jobs in solar manufacturing, design, installation and and servicing.
The group said the proposed rates of payment aim to deliver the Government target for solar to meet 0.5% of UK electricity demands by 2020, but upping the incentive could deliver more than six times that level of installation.
It is estimated the extra payments, which would take the form of rebates on energy bills and be paid for by a levy on energy bills, would cost the average bill payer just £2.50 more a year.
The extra 10p would increase the rate of return on solar panels, making it more worthwhile to pay for the technology in return for the money received through the scheme and the cash saved on energy bills.
A higher rate of return also makes it more attractive for investors or banks to provide funding for installation, as they will receive a guaranteed level of payment over 25 years.
However, the group - which includes the Federation of Master Builders, the National Federation of Roofing Contractors and the Electrical Contractors' Association - said the proposed level of payments delivers rates of return far below what is needed to give the solar industry a significant boost.
Their call is backed by MP Alan Simpson, Energy Secretary Ed Miliband's advisor on the clean energy cashback scheme, who warned that without the 10p boost from 2010, the UK would not "even be in the game" on solar power. He said the UK needed a scheme which would ensure rapid uptake of solar panels from next year, when the programme comes into effect.
Brian Berry, director of external affairs at the Federation of Master Builders, said: "The construction and solar industry work in close partnership, with roofers up and down the country now being trained to install solar electric roof tiles. By increasing the clean energy cashback level by at least 10p, the government is kick-starting economic recovery in the construction industry - allowing solar energy to play a significant role in the greening of our housing stock."
National Federation of Roofing Contractors chief executive Ray Horwood said: "The time has come for roofs to be active parts of a building to help meet our energy targets, to provide a viable solution to meet challenging future building regulations and to support a generation of new jobs for roofers who are eager to become involved in the emerging green economy.
"Adding at least 10p to the proposed prices for solar electricity will help tackle the triple challenge of credit, energy and climate."
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