At Haddock Research, we are addressing the international consumer impact of Feed-in Tariffs (FiT) within our next wave of our syndicated Environmental Choices monitor (section 2c). Specifically, we intend to cover interest and behaviour change relevant to FiT, as appropriate, across all countries in the study (Canada, USA, UK, France, China & Australia). At an holistic level, we will also make an assessment about whether such micro-generation leads to greater 'energy literacy' (as suggested by a 2005 study 'Seeing the light'), or whether there is evidence of a 'rebound effect' (as suggested, in an exaggerated fashion, by Jeff Rubin in a 2010 article) - and how this varies according to a person's concern about climate change.
This survey information we are collecting is intended to contribute to the understanding of the business and political value of FiT. This is especially relevant given that the polemic environmental writer, George Monbiot, has created quite a stir in the past week about his attack on the imminent implementation of feed-in tariffs for micro-generation in the UK (see tariffs).
Feed-in tariffs do look to be a tremendous opportunity for consumers to do something practical about energy security and climate change - but let's see what our survey data shows. At this stage, I will just comment that FiT does offer a very positive opportunity for Britain's low carbon business sector. It fits very well with Gordon Brown's vision, stated in November 2007:
"While climate change presents an immense challenge to the world, it is also a huge opportunity which could lead to the creation of thousands of new businesses, hundreds of thousands of jobs and a vast new export market for the UK with the next two decades, said the Prime Minister"
1. Benefit to UK businesses for the domestic market
A number of UK low carbon businesses have reacted enthusiastically to the implementation of FiT, in the UK - here are just a few examples. Good Energy has launched a campaign to get people to register for their FiT initiative. Solar Century and Ceres Power (pdf) both welcomed the FiT programme, and were both quick to provide worked illustrations of what it meant for UK home-owners. With the UK facing an energy crunch in the coming decade, the market environment is particularly good for such business innovation.
2. Benefit to UK businesses for export to North American market
Intuitively, it would seem that the UK FiT programme would also put British businesses in a position to export their services - such as to the North American market. FiT is starting to take off in North America, where it is supported at the state/provincial or local level rather than the federal level. And data from the first wave of our Environmental Choices study indicate that there is already greater interest in micro-energy amongst Americans and Canadians than English people. Ontario is now a pioneer in establishing FiT in North America, a move which has been applauded by the Association of Power Producers of Ontario. Hydro One is one organization looking for support from companies with 'relevant industry experience' in elements of FiT implementation - with proposals due by March 24, 2010.
Prima facie, this looks like an opportunity for British exporters. And the weakness of sterling should put British businesses in a competitive position. Back in 2004, I exchanged some pounds to Canadian $ at 2.50 (not enough, in hindsight), whereas today's rate is 1.55 - a drop of 38%.
