UK Feed-In Tariff Energizes Business Case
Published: 14 May 2010
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Executive Summary
In April 2010, the UK government introduced feed-in tariffs (FITs) for small-scale low carbon electricity. FITs are payments to energy producers for every unit of renewable electricity they generate whether it is for direct use or to be sold to the grid. The rationale behind this policy is to increase the level of electricity from renewables in the UK, building towards a target of 30% by 2020. Five technologies are set to benefit from the UK FIT scheme, which outlines that different tariffs will be paid for an agreed period of time. Until now, businesses have had few motives to support small-scale renewable energy production, other than green credentials. This scheme boosts the business case for firms to install small-scale renewable energy through fiscal incentives. There are significant residual hurdles that companies need to address to implement onsite renewable energy. These include securing access to finance, overcoming supply chain bottlenecks and resolving ownership issues between landlords and tenants.
TABLE OF CONTENTS
UK FEED-IN TARIFF SCHEME LAUNCHED APRIL 2010
Five Renewable Energy Technologies To Benefit From Feed-In Tariffs
Feed-In Tariffs Provide Additional Incentives For Businesses To Invest
Residual Barriers Exist For Investment in Small Scale Renewables
TABLE OF FIGURES
Figure 1. Tariff Level and Lifetime Depend On Technology Installed
COMPANIES MENTIONED
Ofgem, Proven Energy, Salix, Sanyo, Sharp, The Carbon Trust