Conservatives urge government to avoid feed-in tariff 'valley of death'

Greg Clark called on the government to reassure businesses over feed-in tariff fears

guardian.co.uk, Monday 13 July 2009 17.48 BST

The Conservatives are urging the government to avoid a "valley of death" between the end of the current grants scheme for small-scale renewable energy projects and the launch of the so-called "feed-in tariff" over the next two years.
The shadow energy and climate change secretary, Greg Clark, today called on the government to guarantee that any qualifying technologies that are installed without public funding before the tariffs commence will still be eligible for the feed-in tariff once the tariffs begin.
"Government policy should offer a haven of stability to business in these turbulent economic times. This government's stop-start approach to energy policy is instead doing the very opposite; adding to the sense of uncertainty rather than providing shelter from it," said Clark.
The government's controversial Low Carbon Buildings Programme, which has intermittently provided support for technologies like ground source heat pumps, solar panels and wind turbines, is being phased out in the coming months as its funding is exhausted.
The government has promised to bring in feed-in tariffs – which reward people financially for the renewable energy they produce – in spring 2010 for electricity-producing technologies and 2011 for heat installations.
Installers across the country worry, though, that they could have very little work during interim times if people fear they will lose out on any financial support. The stop-go nature of the LCBP over recent years has already caused such problems.
"The fiasco around the LCBP funding is a sorry case in point," said Clark.
"Policy doesn't need to be this complicated. ."
The energy minister, Joan Ruddock, said today during a meeting of the "We Support Solar" campaign that the feed-in tariff would be called the "Clean Energy Cashback" to make it easier for people to understand.
She said the FIT for electricity would definitely come in next spring, and the heat tariff a year later because of its added complexity. But the industry is waiting for clarity about the levels the various tariffs will be set in terms of pence per kilowatt hour of energy produced.
"It is crucial that the tariff be set high enough to kickstart the sort of change we need to see," said the shadow energy minister, Charles Hendry.
Leonie Greene of the Renewable Energy Association said: "The REA welcomes Greg Clark's important statement on how the Conservatives would give clarity on the implementation of the Renewable Heat Incentive.
"The industry is seeking similar clarity as a matter of urgency from the government as there are many renewable heat projects being delayed, because the developers are understandably waiting to hear whether they would qualify for the future Heat Incentive or not."