Business Green 18th Feb 2010

The following is an extraction from an article on Business Green.

Tories promise feed-in tariff boost for microgenerators

Shadow energy minister says Conservative government would ensure early adopters receive same level of support under Clean Energy Cash Back scheme as new installations.

The Conservatives have said that if elected they will change the rules governing the UK's imminent new feed-in tariff (FIT) scheme in order to ensure those businesses and households that have already installed on-site renewable energy technologies receive the same level of incentives as those deploying microgeneration systems for the first time.

Under the current rules for the government's Clean Energy Cash Back scheme, all solar PV, wind, hydroelectric and anaerobic digestion technologies with a capacity of less than 50kW will transfer over from being supported by the Renewables Obligation (RO) support mechanism to the FIT scheme when it comes into effect on April 1.

However, while new installations of on-site renewable technologies will generally receive 20-35p/kWh, those that deployed their technology before 15 July 2009 will transfer into the FIT scheme at a generation tariff of 9p/kWh. The government has said the 9p/kWh rate is in line with the level of income they have been receiving through the RO, and that to offer them the higher rates would drive up the cost of the scheme without delivering any new installations.

But according to renewable energy industry insiders, the rules have caused "huge levels of resentment" among their customer base, with many feeling that having campaigned for a feed-in tariff, they have now been snubbed by the government.

Writing in a letter to a campaign group set up to push for the same level of tariffs for early adopters of microgeneration technologies, Conservative shadow minister for Energy, Industry and Postal Affairs Charles Hendry said the Party would change the rules of the scheme if elected.

"I understand the frustration at the system which has been put in place for those of you who were early users of micro-generation," he said. "It is… clearly unfair to you that you will remain on the current funding mechanism. You will be pleased therefore to hear that we have decided that if a Conservative Government is elected, we would ensure that microgeneration equipment installed before feed-in tariffs come into effect will nevertheless be entitled to the same terms as new installations."

A Conservative spokeswoman told BusinessGreen.com that further details on the proposed changes to the scheme would be released at the launch of the party's green election manifesto, which is expected within the next few weeks.

The microgenerators campaign has also set up a petition on the Number 10 website calling for "fair treatment" for existing microgenerators, which has to date attracted more than 270 signatures.

Meanwhile, green energy supplier Good Energy has said it will continue to pay existing customers with renewable energy systems 15p/kWh for the power they generate, over 50 per cent more than the nine pence rate proposed by the government.

"It's outrageous that the new FIT only pays the highest reward to new generators," said Good Energy founder and chief executive Juliet Davenport. " Good Energy believes that the early adopters of microgen technology should also be recognised for their pioneering attitude and taking a lead. That's why we've decided to continue paying our existing accredited HomeGen generators 15p a unit for all the electricity they generate and lobby to change the government's mind."