It’s all change for Phil Clarke’s Business Blog. Having flown the business nest to Poultry World magazine, you’ll now find the whole business team contributing to the Business Blog - keeping you up to date with the latest news, views and musings from the world of agribusiness.
It falls to me (Paul Spackman) to open the proceedings, and what better subject than one that seems to have jammed by inbox over the past few weeks - solar power. The flood of press releases and article ideas about solar PV shows it really is flavour of the month.
Whether you’re putting a few PV panels on a barn roof, or thinking about renting out several acres for a ‘solar farm’, it all looks financially attractive and relatively low-risk. I can see why so many companies and landowners are keen to join the bandwagon.
But, let’s not forget the main factor behind this solar revolution - namely the government’s Feed-in Tariff. Where would this fledgling sector be without those attractive incentives? I suspect it would still be struggling to get off the ground.
So it’s no surprise a recent article in the Financial Times that suggested FiTs could be slashed as part of the autumn spending review prompted a number of worried PV investors to contact the REA - the ‘voice of renewables’ in the UK.
The REA reacted by urging government to confirm the tariff rates published at the scheme’s launch would not be reduced in advance of the scheduled review due in 2013 - let’s hope those in power take notice.
If government does go ahead with cuts ahead of this date - and it’s a big if - then it’s likely to put a severe dent in confidence in the sector and I can easily see investors looking for another flavour to try next month…
See our Farm Energy special in this week's Farmers Weekly for more.
For earlier blog postings, please click here.
| Tweet |
|
Here in Australia the the debate is whether feed in tariffs can be implemented. The rates paid by the electricity companies vary from state to state. Here in Tasmania, we are paid AUD0.19/kWhr, the same rate as our highest tariff. I believe it would be some decades to pay off a system without the government subsidies.
I have a 1.0kW domestic system which was purchased on very favourable terms (no net cost, provided I paid AUD2500 up front & assigned the gov't rebate to the installing company, who then repaid my AUD2500 when they got the gov't money).
That was a good deal. What annoys me is that arrays do not produce the power at which they are rated. On average, for the hours our system has operated, it has produced at only 34% of its rating. The suppliers have confirmed this is normal.
It seems numerous factors are at play, but from my observation, clean air is critical; any dust, smoke, mist, rain, reduce output considerably.
I just wish the suppliers would be honest about their ratings. I assume it is a similar story in places other than Aus.