I met with Charles Hendry (the Minister of State for the Department of Energy) at an eco fair in Forest Row
(East Sussex) today.
He was delivering his bombshell - a snap FIT reduction for PV generation, arguing the point in a presentation that the FIT had to be reduced as demand has far outstripped cash supply (from the green tax levy on energy companies). If they did not shut the door hard, they would have had such a rush before April 2012 that the entire budget for the next 3 years for FITs would have been allocated by next April.
Here he is, on the left, being verbally beaten up by an angry audience of commercial solar installers (one farmer had just canned a 40kW install, as it could not be done before the Dec12th FIT deadline) and assorted solar traders (notably Jeremy Leggett, founder of Solar Century, on the right). The dude in the middle was refereeing the bout.
They were all upset that they could not peddle a guaranteed 10-12% index linked and government backed investment opportunity (they're not selling PV, y'know - judging by the advertising copy that usually reads "MAKE FREE MONEY FOR 25 YEARS!!!").
After the debate officially ended, I talked briefly to the minister about alternatives. I suggested that the government should "do it's bit" in enabling me to "do my bit" by making all energy saving and generating equipment and services zero VAT rated. It's odd that my utility bills attract only 5% VAT but the LED lights I buy to save energy attract 20% VAT.
It's also odd that the more energy I use, the cheaper it gets. The first 900 kWhs are are 24p for me and then it drops to 10.5p. Should be the other way round, if we want to curb excessive use, no? It would also mean that the units I save first with my PV generated ones are the more expensive ones.
I also suggested the government extend the "invest as you earn" (IAYE) scheme that already exists (for buying bicycles to work and pension contributions, for example) to other eco products and services (say PV or ASHP or a new A rated boiler or windows or insulation...).
These IAYE investments are deducted by your employer through the PAYE model from your salary prior to income tax is calculated, making the buying of a bike or a pension (or PV or ASHP, etc) income tax free.
You don't get the cash. You get a voucher to buy the prescribed product or service. That way people can't scam the system to dodge tax and blow it on something else.
Think how much more you could invest in saving your skin (eco investment is about saving yourself) if you didn't have to pay 10-40% income tax and another 5-20% VAT for the pleasure.
Charles rubbed his chin and said "That's an intriguing idea...". He'll probably file it under "cranky ideas that reduce government revenue..." and black Mercedes "G cars" will be parked outside my house from now on. [sigh].
He was delivering his bombshell - a snap FIT reduction for PV generation, arguing the point in a presentation that the FIT had to be reduced as demand has far outstripped cash supply (from the green tax levy on energy companies). If they did not shut the door hard, they would have had such a rush before April 2012 that the entire budget for the next 3 years for FITs would have been allocated by next April.
They were all upset that they could not peddle a guaranteed 10-12% index linked and government backed investment opportunity (they're not selling PV, y'know - judging by the advertising copy that usually reads "MAKE FREE MONEY FOR 25 YEARS!!!").
After the debate officially ended, I talked briefly to the minister about alternatives. I suggested that the government should "do it's bit" in enabling me to "do my bit" by making all energy saving and generating equipment and services zero VAT rated. It's odd that my utility bills attract only 5% VAT but the LED lights I buy to save energy attract 20% VAT.
It's also odd that the more energy I use, the cheaper it gets. The first 900 kWhs are are 24p for me and then it drops to 10.5p. Should be the other way round, if we want to curb excessive use, no? It would also mean that the units I save first with my PV generated ones are the more expensive ones.
I also suggested the government extend the "invest as you earn" (IAYE) scheme that already exists (for buying bicycles to work and pension contributions, for example) to other eco products and services (say PV or ASHP or a new A rated boiler or windows or insulation...).
These IAYE investments are deducted by your employer through the PAYE model from your salary prior to income tax is calculated, making the buying of a bike or a pension (or PV or ASHP, etc) income tax free.
You don't get the cash. You get a voucher to buy the prescribed product or service. That way people can't scam the system to dodge tax and blow it on something else.
Think how much more you could invest in saving your skin (eco investment is about saving yourself) if you didn't have to pay 10-40% income tax and another 5-20% VAT for the pleasure.
Charles rubbed his chin and said "That's an intriguing idea...". He'll probably file it under "cranky ideas that reduce government revenue..." and black Mercedes "G cars" will be parked outside my house from now on. [sigh].
