A coalition of trade bodies, unions and charities is calling for stronger incentives for businesses and other organisations to invest in small-scale renewable energy generation.
The Government plans to introduce a feed-in tariff into its Energy Bill, a mechanism which would see organisations who invest in solar or wind energy generation paid above-market prices for their electricity.
But many believe the Government’s plans do not go far enough and are calling for the feed-in tariff plans to be significantly strengthened so that businesses, community organisations, households and local authorities are given stronger financial incentives to install small-scale green energy systems such as solar panels, wind generators and water turbines.
Twenty nine organisations, including the British Retail Consortium, Home Builders Federation, The Co-operative Group, TUC, Energy Saving Trust and Friends of the Earth, have written to every member of the House of Lords expressing disappointment with Government plans to include feed-in tariffs in the Energy Bill.
They are urging peers to support amendments that would considerably strengthen the proposals.
The groups warn that there are a number of flaws in the Government’s proposed amendment to the Energy Bill and fear it will do little to boost the development of small-scale renewable energy projects.
A feed-in tariff is a guaranteed, long-term, premium price paid to households, communities and businesses for electricity they generate from renewable sources such as wind, water and the sun.
Last month, following a year-long campaign, the Government agreed to introduce a feed-in tariff – but critics say its proposals fall a long way short.
Ed Matthew, Head of UK Climate Friends of the Earth, said: “A strong feed-in tariff is desperately needed to give homes, businesses, communities and local authorities a incentive to fit renewable energy systems and play a major role in tackling climate change.
“Unfortunately the Government’s woolly proposals are fundamentally flawed and will not guarantee that an effective scheme will be introduced.
“Proposals for a feed-in tariff must be strengthened to ensure that the UK reaps the benefits of its abundant supply of clean, green energy.”
Further changes to the Government’s feed-in tariff amendment have been tabled by Conservatives, Liberal Democrats and Labour peers.
These would set a timetable for the introduction of a scheme and oblige the government to include the most basic elements of a feed-in tariff – which are common to schemes across Europe.
The coalition of organisations believe the Government must vary support payments to take account of different technologies and the size of installation and it must also allow payments to be set for a fixed contract length to give investors financial security.
Friends of the Earth is also calling for the scheme to be extended from the three megawatts the Government proposes to 10 megawatts to encourage investment in the full range of community and municipal schemes.
The coalition is also concerned that there is no timetable for action.
The House of Lords was last night voting on amendments to the Bill.
