FIT for a purpose?

1 Nov 2011 by Karl Hallam

Why are the governement proposing to halve the Feed in Tariff? On a day when new growth figures are released that suggest any policy that creates jobs and investment needs to be cherished, its hard, on the face of it, to fathom.

As an essentially optimistic business who tend to not go along with the idea that all decision makers/polticians are croooks and instead believe they are trying to make the UK a better place to live, this is a tough one. The clips below from Google News today show widespread despair across the political spectrum ...

Presumably a decision has been made that the guaranteed payment for solar created electricity is too expensive. How has that calculation been made? Does it include the benefit of the jobs created in the industry since it was introduced? How does it square with the 'greenest government ever' message from Cameron in May 2010. 

We can see that this subsidy could be construed as regressive. A good way for people with money to invest to get a better return on money. But, if people have money to invest why, not incentivise 'good' investment?

For a little insight into government thinking of the topic look at this clip from parliament, where they debate an urgent question on FIT.

 

Feed in tariff reforms to handicap installation boom

‎Manufacturer.com - 1 hour ago
Climate Change Minister, Greg Barker has announced reforms to feed-in tariffs for solar power installations after an installation surge put strains on ...
Feed-in tariff cuts 'will kill solar industry stone dead'‎ The Guardian
Feed-in tariff cuts start dash for solar panels: Thousands try to ...‎ Daily Mail
Firms hit out at Feed-in Tariff deadline‎ The Northern Echo
Business Green - This is Money 

your comments

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george monbiot
Reply #1 on : Sat November 12, 2011, 06:54:30
George Monbiot puts forward a rather compelling counter argument

http://www.guardian.co.uk/commentisfree/2010/mar/01/solar-panel-feed-in-tariff

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