Mixed messages from the Government on renewable energy are beginning to confuse both business and the public, a leading lawyer has warned.
Mark Lee, partner in the real estate department at Stratford-upon-Avon firm Lodders, said a greater degree of certainty was required if the sector’s growth was not to stall.
His comments follow subsidy cutbacks for both solar and wind energy.
Lodders has a growing niche practice helping clients with the myriad layers of legal requirements involved in such power sources. Headed by the firm’s senior partner David Lodder, it has advised on opportunities to develop “sun farms” – solar power farms – and on leases for such sites.
Earlier this year the Government cut the feed-in-tariff rate for solar from 43.3p to 21p, with protestors warning it could threaten the whole industry. And last week the Government reduced support for wind turbines designed for homes and businesses, slashing the feed-in tariff level for those with a production capacity of up to 100 kilowatts by 20 per cent.
Mr Lee said: “These decisions are disappointing and risk confusing business and the public.
“If you go ahead with an installation you do so for the long term. It is difficult to make such a commitment if the rules keep changing and you don’t know whether the economics will continue to stack up.
“I understand that these are difficult times and public spending is bound to be kept on a tight rein, but the stop-start approach is simply not appropriate to renewables. It can not be turned on and off with the flick of a switch. Economies of scale are vital for a fledgling industry. All this creates uncertainty and that is not good.”
Nevertheless, Mr Lee believes renewables are here to stay.
He added: “Despite much criticism, the Government has been right to expand wind power, solar panels, biomass and other initiatives.
“It is generally accepted that we must have a balanced energy policy and not put too many eggs in one basket. That is absolutely vital if we are to maintain security of supply and not leave ourselves vulnerable to price hikes we cannot influence. Progress to date would not have happened without Government incentives.
“Solar, wind and biomass have a massive part to play in the future of power generation. Public opinion is behind renewables and I believe investment in these sectors will continue.
“It is a balancing act because public money is involved. But people need to be convinced that renewables are worth investing in. Once there is doubt about the future then businesses and home owners will hold back. Having made such strides this is not the time to put further growth in jeopardy.”
