Amber Rudd, the energy minister, announced a series of cuts earlier this summer, including a reduction in the guaranteed price paid for electricity generated by new rooftop solar installations by up to 87 per cent. The government has said the existing levels of support are no longer needed as the industry has reached critical mass – and that it must act to protect customers, who ultimately pay for subsidies through green levies paid by suppliers and passed on in energy bills.
If it was a purely subsidies to “green” energy then I could understand it – let them compete on a level playing field with all the other commercial generators, (coal, gas, nuclear etc.) but it’s not.
The new Hinckley point Nuclear PowerStation is getting a vast amount of OUR money in subsidies – remember it’s the Chines that are building it).
The Government is planning to slash generation tariffs for new domestic installations by 83 per cent from the start of next year to 1.63p per kilowatt hour (kWh) — though they will still get an additional 4.85p for every kWh exported to the National Grid.
By cutting this subsidy it will give us all back the vast amount of £6 a YEAR off our energy bills.
The total solar capacity of the UK is now eight gigawatts. However, Government estimates show the proposed cut in the generation tariff could cost the UK six gigawatts of renewable energy in the future.
EDF's £25 billion Hinckley Point C nuclear station will generate 3.2 gigawatts — i.e. half the energy potentially being lost changing the renewable scheme.
But look at what vast subsidies the Government is giving EDF to build this Nuclear Plant. Yes, we need it but surely it would be preferable and fairer to give a smaller subsidy to you and me to be more energy efficient and Greener? Not give enormous sums to these vast multinational conglomerates?
The Government has guaranteed energy giant EDF and its partners will receive at least £92.50 for every mega-watt hour of electricity generated by Hinckley Point C — twice the current market price — and that figure will rise with inflation.
Some estimates suggest total subsidies to the project could cost tax-payers £76 billion — that's £2,870 for every household in the UK.
By comparison commercial solar energy generators get an average £68 per megawatt hour — almost a third less than nuclear. Scaling that down to household proportions the nuclear option receives 9.25p per kWh compared to commercial solar's 6.8p.
If the cuts go ahead, homes with solar would get 4.055p per kW (if they continue to be paid the export tariff for half of the energy they produce).
The Energy Saving Trust has published a review into the cuts for renewable energy. It argues that the residential generation tariff could be set at 5.5p or 6p per kWh — around half the current levels — which, with falling installation costs, would still leave solar looking attractive.
This wouldn't save as much, but it would still knock £3 a year off a household energy bill.
Yes, we need Nuclear or the lights will be dimming, but surely it would be preferable and fairer to give a smaller subsidy to you and me to be more energy efficient and Greener? Not give enormous sums to these vast multinational conglomerates?
