After I mocked Italy’s efforts to combat climate change, it turns out their funding for microgen (in particular photovoltaic panels) makes the UK’s policy look even more pathetic. If that were possible.
Here’s a one-paragraph wrap up of the recent history of the Low Carbon Buildings Programme (the UK’s primary mechanism for supporting small and medium scale renewables):
First they stopped the household stream of the programme in March of this year because they were running out of money on the first day of each month. Then they said there would be at least a two month break in funding while they scratched their heads, causing layoffs in the microgen industry. At this point, according to the Guardian, they even threatened renewables firms with deliberately prolonging the delay if any of them kicked up a fuss in the press. Now, they’ve restarted with huge cuts in funding levels.
All of this contrasts pretty sharply with the government’s stated intentions toward renewables and Blair’s assertion that the UK leads the fight against climate change. Not even going to bother looking out links on that – they’re everywhere.
The pathetic hypocrisy of the UK policy also contrasts sharply with Italy’s new microgen electricity buyback policy, the nuovo conto energia. From February 2007, small generators are guaranteed a buyback price of up to €0.49/kWh. What’s more, the energy you generate is taken off your bill, raising the value of each kWh generated by another €0.17 or so. So that’s a grand total of around €0.66/kWh compared to a typical buyback price of something like €0.06/kWh in the UK.
For installations between one and three kW it breaks down like this:
- Installed on flat roof or in garden € 0.40 / kWh
- Fixed to roof tiles € 0.44 / kWh
- In place of roof tiles € 0.49 / kWh
All this brings the simple payback times down to around 6-8 years, after which the systems generate a hefty cheque each year for their owners. Here’s the official details (in Italian).
The new Italian system is very similar the one that’s been in place in Germany since 2000. The German model might explain why, according to the Washington Post, Germany produced about half of the world’s solar electricity in 2006. The article goes on:
Of the 20 biggest photovoltaic plants, 15 are in Germany, even though it has only half the number of sunny days as countries such as Portugal. The reason is not a breakthrough in the economics or technology of solar power but a law adopted in 2000. It requires the country’s huge old-line utility companies to subsidize the solar upstarts by buying their electricity at marked-up rates that make it easy for the newcomers to turn a profit.
Good for the environment, good for the economy. Italy, blessed with far more usable sunshine, may soon outpace Germany in generating solar electricity. Meanwhile the UK government will continue to pay lip service to micro renewables, commissioning reports, identifying barriers to market, and so on, without taking meaningful action. My heroes.
carbon limited 
aaahhh! I feel like a salmon.
I’m interested to see what’ll happen if Miliband becomes Chancellor of the Exchequer.
I wonder if he will put up with this or if everything he’s preached up until now will disappear as the power goes to his head.
Something I forgot to include in the blog entry, according to this
Germany has 300,000 PV systems compared with Britain’s 5,000. I haven’t found any figures for Italy.
Some of the microgen suppliers we use have had visits from the Shadow Energy Secretary, who has impressed them with his knowledge and understanding of the problems facing the industry in general and the LCBP in particular.
He has garnered many votes for the future.. but then, the opposition will say ANYTHING to get in power.
Despite the LCBP failings, however, it seems strange to me that companies can go bust in such a short time. We cant get our guys on site because they are so overemployed right now.
Bill Dunster is also starting to import license-built microgen systems from China (essentially German) and thinks they can be installed for a cost comparative with grant-aided systems.
Jason, I bet a lot of the talk of layoffs was for the benefit of the press. But when you think about the inconsistent strategy from gov’t, I don’t blame them for being a bit dramatic.
Since Oregon’s number of sunny days probably equates to Germany’s, it appears there is no excuse for the NW to not adopt legislation re: solar energy systems. It’s a matter of political will and capital.