Having delayed for years, the UK government is finally set to implement a financial incentive scheme for solar energy. Under the proposal, which is due to become law in the first quarter of 2010, electricity produced from solar energy will receive a guaranteed price per unit. This guaranteed price, called a feed-in tariff, aims to remove the uncertainty around price that has hampered growth in the industry for many years. By taking this step, Britain is finally following the example of other major European economies like Germany, France and Italy. At a solar energy conference in London later this year, UK and international experts will talk about the prospects of the solar PV industry in the UK. The conference, scheduled for 22 June 2010, will act as a platform, with networking opportunities for UK and international business executives. Major stakeholders, from regulators to industry experts and financiers, will be discussing their expectations.

While other European solar energy markets have been thriving in the last five years, the UK market for solar electricity (also known as photovoltaics, or simply PV) has remained small and is still in its infancy. But all this is about to change. The new feed-in tariffs are scheduled to come into effect by 1 April 2010. The photovoltaic industry expects growth to kick in quickly after that date. More than 50 solar companies around the UK are eagerly waiting for the law to be finally passed in the House of Commons in April 2010. "Other countries in Europe have shown how quickly clear framework conditions can translate into growth. We are now ready for growth in the UK as well, and hope that other stakeholders like the financial institutions will also see the opportunity," says Joachim Gerhard, a London-based solar energy consultant.

Friends of the Earth President Erich Pica had the following statement in response to the G20 communiqué on climate change: "We commend the G20 for its agreement to end government subsidies for fossil fuels, but feel that industrialized country leaders missed an opportunity to make real commitments to fund international climate finance. While this is an important step forward in weaning the globe off of dirty fossil fuels, the lack of financial commitments jeopardizes an international agreement on global warming. "For decades, American politicians have invested merely rhetoric into sustainable, renewable energy, while pouring billions of dollars of hard cash into dirty fossil fuels. It is important that the G20 actions eliminate all subsidies for fossil fuels. For the U.S. this requires not only implementing President Obama's February budget outline, but also ending fossil fuel subsidies given through the U.S. Export Import Bank, the Overseas Private Investment Corporation, the U.S. Agency for International Development, and the U.S. contributions to the World Bank and other international financial institutions. These subsidies add up to billions of American taxpayer dollars every year going to fuel climate change through projects overseas.

As part of an innovative partnership aimed at increasing economic development while setting our nation on the path to energy independence, the U.S. Department of the Treasury and the U.S. Department of Energy today announced a program to award $2.3 billion in tax credits for manufacturers of advanced energy equipment. Authorized by the American Recovery and Reinvestment Act (Recovery Act), this new program will provide tax credits to manufacturers who produce clean energy equipment. "This program will help encourage innovation in design of clean energy technologies," said Treasury Secretary Tim Geithner. "This partnership between Treasury and Energy adds an important new dimension to the incentives created in the Recovery Act to increase US manufacturing output, improve energy efficiency, and develop alternative sources of energy." The Recovery Act created a new tax credit program by authorizing Treasury to provide developers with an investment tax credit of 30 percent for facilities that manufacture particular types of energy equipment. Qualifying manufactures will produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. Said Energy Secretary Steven Chu: "These tax credits will help create thousands of high quality manufacturing jobs in some of the highest growth segments of the economy. This is an opportunity to develop our global leadership in clean energy manufacturing and build a secure, sustained base of jobs for America's workers." The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached.

The  government of the Netherlands has earmarked 65 million euros to help make the Netherlands the international testing ground for electric cars. It has also drawn up a plan to speed up the introduction of electric cars onto the market. By 2010, the price of electric cars is to be far more competitive. And the first steps must have been taken towards a standard battery charging system. The government believes that the Netherlands is ideal for electric cars. Distances are short, roads are flat and the electricity network is good. What is more, many of the leading suppliers of parts for electric cars are Dutch companies. The government wants to make use of this advantageous starting position. Some of the measures from the government plan are: (1) Companies that buy electric cars will receive an average of 8,000 euros in support, (2) Companies investing in battery charging points will be eligible for tax breaks, (3) Electric cars will be exempted from both car and motorcycle tax and road tax and (4) Wherever possible, the government will buy electric cars for its own fleet. The Formula E team, made up of people from the knowledge industry, the market and civil society organisations, will look at the challenges, opportunities and dilemmas presented by electric cars.

Source: Dutch government

The government is to offer people between £2,000 and £5,000 to help buy an electric car. The funding is part of the government's strategy to reduce the UK's CO2 emissions. From 2011, anyone buying an electric or plug in hybrid car will be able to receive help worth between £2,000 and £5,000, depending on the cost of the vehicle they are looking to buy. To be eligible for the hand-out cars would need to meet modern safety standards and have a large enough range and top speed to make them popular. Transport Secretary Geoff Hoon said: ""Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1 per cent of the UK's 26 million cars are electric, so there is a huge untapped potential to reduce emissions."

"The scale of incentives we're announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport." The government has also provided £20 million to pay for more charging points and related infrastructure to help develop a network of 'electric car cities' throughout the UK.

Source: UK Government