A quick thought on feed in tariffs.
If a value is agreed for micro power generating renewables, what will the impact be on the solar thermal industry? Would this amount to an anti-competetive subsidy for one type of technology over another? And if so, what are the wider implications?
I can see a scenario in super low energy dwellings where the feed-in tariff for PV might result in an electric heating and DHW solution, but without solar thermal as it may have a poorer pay back. This could result in solutions biased towards oversized PV in situations where solar thermal provides a more common sense fit.
Any thoughts?
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Hi Nick,
I am not sure if competition policy covers competing technologies. My gut feeling is that it is solely focused on competing firms.
However there is a larger question of the adoption of competing technologies and governments choosing technologies early. For example, in Japan the use of solar thermal compared is low relative to PV. I am not sure exactly why but it is certainly to do with a lot of historical factors such as a bad rep for solar thermal in the 80s, localisation of big PV manufacturers in japan and air conditioning.
Affecting the decision-making processs of current choices of energy strategy are likely to have long-lasting effects. There is a possibility of getting locked into heat energy strategies of poor building fabrics, heat pumps and PVs (electric) versus the excellent fabric, solar thermal/biomass (heat). Although in France electric strategy could potentially work, this would not be a policy choice in UK.
Nick,
I think you make a very good point. Feed-in tariffs will distort the market. And it all stems from a failure to price carbon correctly.