Leading renewable energy lawyer, Alan John of Osborne Clarke, has given a cautious welcome to the government's feed in tariff (FIT), saying that the success of the scheme could depend on the availability of market finance for micro-generation projects.

The FIT levels, published today by the Department of Energy and Climate Change (DECC), set levels for payments to small scale generators of low carbon electricity.

The government expects the scheme to kick start the installation of smaller scale generation facilities on houses and community schemes which to date has only experienced limited take up. 

In welcoming today's announcement Alan John, Head of Renewables at solicitors Osborne Clarke said:

"This news could transform the rate at which smaller scale low carbon generation is installed across the UK.

"With rates for several generation technologies such as solar photovoltaic (PV) and small wind turbines being set at levels that could pay back initial capital investment in less than 10 years, householders may now feel sufficiently incentivised to install systems at their properties".

However he went on to add a cautionary note:

"Householders may still regard the initial outlay required to purchase a low carbon energy generation system as being prohibitive: installing a typical 2kW PV domestic system, for instance, currently costs in the region of £10,000. 

"The success of the FIT in promoting the take up of low carbon generation may well largely depend on the market developing financial packages that fund up front capital expenditure in return for a charge on FIT payments generated by the installed system".

Date: 01 Feb 2010