Feed in Tariffs for Renewable Energy

In the face of enormous challenge of man-made climate change, ‘business as usual’ or the incremental adaptation of our economy is not enough. Britain needs dynamic industrial change if it is going to compete and win in the low carbon era.

Many of my constituents have been in touch regarding feed-in tariffs for renewable energy. Such an energy revolution would not involve dispensing with the national grid but I would like to see every small business, local school, hospital and household in the country to generate electricity through micro-generation.

The feed-in tariffs are an essential part of the change to decentralise energy. It works on the principle that a fixed price is paid for each kilowatt-hour generated by a low carbon micro-generator of a given technology and the owner will be paid for the gross amount generated. The micro-generation user will continue to pay the normal price for the electricity they consume. The two amounts, the tariffs received for generating and the tariffs paid for electricity consumed, will be shown on an electricity statement that replaces the conventional bill and will be netted off against one another.

For simplicity’s sake, and to ensure the maximum amount of users, I believe that anyone using an accredited professional to install a certified low carbon generating appliance of below 250kW should be automatically eligible to receive feed-in tariffs for electricity generated without doing more than signing a standardised contract. Long-term feed-in tariffs are the dominant way that decentralised low carbon micro-generation is supported across Europe. There is no additional cost to consumers’ bills beyond ordinary electricity prices and, in the long-term, electricity consumers will start saving on their bills.

I recognise that these proposals involve significant technical, economic and environmental issues and interested parties need to be engaged in order that this can be taken forward.

I have signed Early Day Motion 890.


April 2008