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To boost renewables in the economy....

MFW_ASAP
MFW_ASAP Posts: 1,458 Forumite
edited 20 November 2015 at 2:32PM in Debate House Prices & the Economy
The title says it all really. Should people with solar panels, who are in receipt of feed in tariff subsidies (paid for by all electricity bill payers), be encouraged onto electricity plans that have 100% generation from renewables or lose their tariff subsidies?

Most owners of solar panels have seen a large reduction in their electricity bills, paid for by the subsidies from other people's electricity bills. The average panels are paid off within 6 or 7 years, with the remainder of the 20 or 25 year subsidy providing them with a tax free income.

Should they therefore give a little back by paying a little bit more for their electricity (still much less than they would have paid without solar panels) by going onto a Green Tariff. This would further assist the renewables industry and help the UK move towards a CO2 free future. Currently, solar users register with their energy suppliers to receive their feed in subsidies and export payments and so they could easily be put onto their suppliers green tariff.

Those who don't want to help out, could opt out of their FIT payments and energy export payments and remain on cheaper, coal/natural gas based energy supplies.

Thoughts?
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Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Sounds like an over complication to me. If FITs are too high, reduce them but this just makes me think, 'Don't just do something, stand there'!
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    Generali wrote: »
    Sounds like an over complication to me. If FITs are too high, reduce them but this just makes me think, 'Don't just do something, stand there'!

    It's not complex at all. Anyone with grid attached solar have to register it with their energy supplier in order to get FIT payments and the deemed export payments. It wouldn't then be difficult to automatically put these onto a green (renewables only) electricity tariff.

    The issue with FITs is that you can reduce them for new subscribers, but not for people who have them already.
  • michaels
    michaels Posts: 29,133 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Also if the govt gives a commitment and then unilaterally changes the conditions afterwards it is likely to make people very wary of dealing with future govt schemes. It already seems very hard to encourage people to make their homes more energy efficient even where it is in their own financial interest to do so.
    I think....
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    michaels wrote: »
    Also if the govt gives a commitment and then unilaterally changes the conditions afterwards it is likely to make people very wary of dealing with future govt schemes. It already seems very hard to encourage people to make their homes more energy efficient even where it is in their own financial interest to do so.

    It's not changing the payments, it's enhancing the green credentials of those people with solar. Helping further promote green energy. I'm sure that most people install solar panels because they want to save the planet. This is just another way for them to show their altruistic ways. :)
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    MFW_ASAP wrote: »
    It's not complex at all. Anyone with grid attached solar have to register it with their energy supplier in order to get FIT payments and the deemed export payments. It wouldn't then be difficult to automatically put these onto a green (renewables only) electricity tariff.

    The issue with FITs is that you can reduce them for new subscribers, but not for people who have them already.

    there seems very little moral difference between the government simply reducing the FIT and forcing the person to pay a larger green tariff
  • chris_m
    chris_m Posts: 8,250 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    MFW_ASAP wrote: »
    I'm sure that most people install solar panels because they want to save the planet

    I suspect that most people who install solar panels do it to save on their electricity bills :p
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    chris_m wrote: »
    I suspect that most people who install solar panels do it to save on their electricity bills :p

    Haha, true, but getting them to admit it and take off their 'holier than thou' green cloaks is another matter. :)
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    CLAPTON wrote: »
    there seems very little moral difference between the government simply reducing the FIT and forcing the person to pay a larger green tariff

    They're not forcing anything. The panel owner can continue to enjoy getting clean energy from their solar panels and the remainder of their energy from dirty gas fired power stations, but then wouldn't receive their free handout from other energy bill payers.
  • pwllbwdr
    pwllbwdr Posts: 443 Forumite
    Part of the Furniture Xmas Saver!
    There's no requirement to have the FIT handled by your electricity supplier. Lots of owners of panels will have changed supplier since installing.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    MFW_ASAP wrote: »
    They're not forcing anything. The panel owner can continue to enjoy getting clean energy from their solar panels and the remainder of their energy from dirty gas fired power stations, but then wouldn't receive their free handout from other energy bill payers.

    Absurd

    Charging more or reducing income is exactly the same, morally, legally and in fact.
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