Archived press release

Green electricity cash boost for homes and businesses - but overall ambition disappointing

1 February 2010

The cash payments that will be made to homes, businesses and communities for generating green electricity - announced today (Monday 1 February 2010) by climate secretary Ed Miliband - are lacking in ambition, says Friends of the Earth.

The environmental campaign group, which led the campaign for a feed-in tariff, said that the payment levels should have been set to produce a 10 per cent return on investment instead of the five to eight per cent return that has been agreed.

Although the Government announced some welcome improvements to its feed-in tariff proposals today (such as increasing tariff payments with inflation), the scheme is still predicted to contribute just two per cent of UK electricity by 2020, despite research which shows that the scheme could generate three times as much with increased tariff payments.

Friends of the Earth's energy and climate campaigner Dave Timms said:

"The introduction of cash incentives to boost small scale green electricity generation is welcome - however, Ministers have been far too timid with a policy that could make a significant contribution to cutting emissions and boosting energy security.

"Installing renewable technologies will now be a good investment for many homes - but farmers, businesses, communities and others will get little or no extra incentive to invest in clean electricity.

"There is huge public support for small-scale green energy schemes. The Government must do much more to tap into this enthusiasm and ensure that everyone plays their part in developing a safer, cleaner future."

Last week a YouGov survey for Friends of the Earth, the Renewable Energy Association and the Co-operative Group revealed that two thirds of the population think that Government feed in tariff plans are not ambitious enough, and 71 per cent of homeowners said they would consider installing green energy systems if they were paid enough cash.

Households and communities who install generating technologies such as small wind turbines and solar panels will from April be entitled to claim payments for the low carbon electricity they produce.

Notes to editors:

1. A Friends of the Earth analysis of the final scheme is available at: http://www.foe.co.uk/resource/media_briefing/feed_in_tariffs_analysis.pdf

And a Friends of the Earth briefing - ahead of today's announcement - is at: http://www.foe.co.uk/resource/media_briefing/feed_in_tariffs_briefing.pdf

2. Friends of the Earth was awarded "Advocates of 2009" at the British Renewable Energy Awards earlier this year for its campaigning on feed-in tariffs.

3. Feed-in tariff legislation was passed in the Energy Act 2008 with huge Parliamentary support across the parties.

4. Friends of the Earth press release, 'Small-scale green energy schemes could generate more electricity than two nuclear power stations': http://www.foe.co.uk/resource/press_releases/feed_in_tariffs_30112009.html

5. Over 160 MPs have signed an Early Day Motion calling the proposed scheme "wholly inadequate" and calling for a higher level of ambition. Signatories include over 80 Labour MPs and the chairs of three relevant select committees.

6. Friends of the Earth press release: Public back calls for more ambitious green electricity scheme for homes, businesses and communities. http://www.foe.co.uk/resource/press_releases/fits_survey_27012010.html

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Published by Friends of the Earth Trust