Re-evaluation of FIT Scheme Subsidiaries Essential for Green Economy Growth

The Feed-in Tariffs or FIT scheme recently under review by the government is essential for the sustainability of Britain’s green energy sector. For the last decade the United Kingdom has seen a boom in the installations of solar panels by residents and businesses, providing sustainable green energy as well as decentralising energy production. The advantages of clean energy production not only affect the environment but also have major implications for the development of the green energy sector. As a commercial entity, green energy has the potential to encourage green start-up businesses in installations, maintenance and insurance, create jobs and pump money back into the economy whilst saving money from the pockets of citizens, partially through the FIT scheme.about FIT schemes UK

The Current FIT Scheme

The UK FIT scheme is a subsidiary aimed at encouraging residents and businesses to invest small scale, low carbon electricity generators such as solar panels, to reduce the reliance on traditional fossil fuel and nuclear energy suppliers. In return, individuals and businesses will receive a payment from electricity suppliers for surplus energy that is returned to the National grid. The problem is that with the increase of solar panel installations, which shows a move towards a green economy, the solar FIT scheme subsidiary amount has not decreased. This is the trend even though the cost of installing green energy generators has decreased by 30%, making it easily accessible, reliable and cost effective. However, if overgenerous subsidies continue, the green energy economy will prove to be unsustainable as has been proved in countries with similar government FIT schemes in Italy, Spain and France.

How to Sustain Green Energy with an Adjusted FIT Scheme

The subsidiary outlined in the solar FIT scheme is currently sitting at double figures at 43p/kWh of returned green energy. The proposal for the new rates for photovoltaic or PV systems is an almost 50% cut of 21p. The rate and proposed initialisation date of 1st April has not yet been approved. These adjustments were long overdue, considering that the amount of installed solar panels are over three times more than what the government initially projected at the start of the UK FIT scheme. The scheme has literally been burning through the initial budget of £867 million.

Why a Balance of the FIT Scheme Subsidiary Amount is Essential

Subsidiaries are essential as they encourage the initial installation of solar panels and similar low carbon energy producers, which is the objective of the entire FIT scheme. The current boom however is impossible to sustain with the current subsidiary amount, giving large returns to a few as opposed to smaller return to many. The point of the government FIT scheme is to implement energy saving services to as many consumers as possible, thus moving towards a complete green economy as opposed to a segmented one. An intelligent FIT scheme needs to be developed that measures energy efficiency within the context of the rapidly expanding green energy market, to ensure long term sustainability through the adjustment of the FIT scheme subsidiaries.

 

Penny Munroe is an avid writer in green economy issues and aims to educate readers on how sustainable initiates are beneficial to both the environmnet and businesses. Her interest began when she was employed in a green office for rent. Since then she has closely followed the benefits of the green economy boom in the serviced offices Glasgow, London, Edinburgh and Cardiff offer.

 

 

 

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