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Will the FIT (Feed –In –Tariffs) boost UKs solar industry?

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Home » Will the FIT (Feed –In –Tariffs) boost UKs solar industry?

Since the introduction of the feed-in tariff (FIT) scheme the PV installations have risen from around 400 in April to over 4000 by the end of July, according to iSuppli. Especially the majority of these installations has been undertaken in the commercial sector. The residential sector installations will increase dramatically as well with the implementation of the Code for Sustainable Homes (CSH) and its alignment with the new Part L Building regulations. Particularly, as we move closer into 2015 and 2016, where 100% C02 reduction will be required by Code Level 5 and “Zero Carbon Homes”.

Germany and Spain have preceded the UK in legislation schemes regarding solar power. Germany focused on the residential sector and Spain in solar farms. The UK on the other hand is in both commercial and residential sectors, which will give the UK a great advantage over other European Countries. Also, the finance sector in the UK has welcomed the new policies such as FIT and CSH, and has started to invest in the solar sector.

This all good news for the UK, but it must be ensured that this won’t be just another “new trend” or “boom and bust” case. At the moment, legislation policies such as the Carbon Reduction Commitment (CRC) , the CSH provide a very good framework for FIT and for the development of a sustainable solar market until 2020.  Business will need to employ a range of actions to avoid penalties under the CRC, and PV installation systems will be part of the mix. Also, new homes will have to employ PVs to meet the CSH requirements. Planning permissions requiring on-site generation, zero-carbon new housing by 2016, zero-carbon buildings by 2019, and 35% renewable generated electricity by 2020 are all part of creating a sustainable market and a sustainable growth in the PV sector.

More importantly, the markets need to be educated on the benefits and opportunities in terms of return on investment. This is not to mention the knock-on benefits of good-quality jobs and careers, carbon reduction and energy security.

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