Documents leaked recently revealed that the Government has provided billions of pounds in subsidies to the fossil fuel industry on the quiet. Click here for the Independent’s coverage of this.
Meanwhile, renewable energy subsidies have been slashed repeatedly and suddenly in recent years.
Leaving aside politics and climate change, we’re quite happy that our industry is almost subsidy-free, for two main reasons:
1. State interference with your business isn’t always so good
Back when SunGift started, in Gabriel’s home office, the Feed-in Tariff didn’t exist. We had a nice stable business where customers bought solar because they wanted to generate their own energy or for environmental reasons. Then, the Feed-in Tariff launched and suddenly there was a solar boom. Initially, this went well and the uptake of solar soared. But, then the cuts began. And they were sudden and pretty deadly. Many valiant competitors disappeared off the edge of the solar cliff.
Now, with subsidies at an all time low, we’re in the same position as other businesses. And frankly, in many ways, it’s a relief.
2. Actually, renewable energy is now financially attractive without subsidy
We’re often asked: “now the subsidies are gone, surely solar doesn’t work?” Actually, unprecedented falls in product costs, coupled with worldwide development of renewable technology, and hikes in energy prices, make solar affordable and cost-effective. Businesses and householders alike are seeing the benefit of producing their own energy at a set price for years to come.
Oh, and number 3? We’ve all seen the devastating images of starving polar bears on melting ice caps. Fossil fuels are killing our planet and people are more aware of this than ever before.
So, yes the Feed-in Tariff boom was great for lots of reasons. But we’re pretty relieved it’s over!
