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Feed-in tariff

Home Truths - a report from Friends of the Earth and the Co-operative Bank - says every home needs to generate renewable energy in order to help cut the UK's carbon emissions from housing by 80%.

However smaller scale renewables like:

  • Solar panels on roofs
  • Wind turbines in gardens
  • Community owned renewable energy schemes

currently receive little or no government support.

Solar panels on a house

Feed-in success

Many European countries have successfully increased their renewable electricity generation by creating a using a renewable energy reward, otherwise known as a feed-in tariff.

A feed-in tariff is a duty on energy companies to pay a guaranteed, long-term, premium price for electricity generated by renewable sources and exported to the National Grid.

The price paid is substantially higher than the cost of electricity used in the home. This gives homeowners who want to invest in, say, solar panels:

  • Better return on their money
  • Long-term guarantee of that return for up to 25 years.

We believe there is an urgent need for a feed-in tariff to support renewables in the home, community, and for businesses.

Germany v UK

Germany has 200 times more solar power than England because German households and businesses get paid a feed-in tariff for the solar power they generate.

It has helped make Germany a world leader in renewable energy and is a good example of the kinds of solutions we need to tackle climate change.

Meanwhile Britain is near the bottom of the European renewable energy league table.

If Britain is serious about promoting renewable energy, it needs a feed-in tariff or we'll be left watching the climate crisis worsen.

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Main image © Balthazar Serreau

 

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Last modified: Jun 2008