Mail article on poor innocent grannies subsidising evil solar

[cliffski]

http://blogs.thisismoney.co.uk/2012/01/why-should-my-granny-pay-40-a-year-for-your-solar-energy.html#comments

Why should my granny pay £40 a year for your solar energy?

The debacle over payments for solar energy is dragging on.

We currently have an excessively generous system that pays people with solar panels 43p per kWh to generate energy - £1,000 a year, on average, according to the Energy Saving Trust.

This system, known as the feed in tariff, was designed to incentivise people to ‘go green’ and is paid for by all consumers, in the form of higher energy bills.

But if these lavish payments continue, it will add £40 a year to every household’s electricity bill by 2020. The Government had budgeted for each household to pay just £23 – an already iniquitous sum.

please add some comments to counterbalance some of the drivel on there...

[dhaslam]

Suggestions on the (Irish) TV news tonight  that exceptionally cold conditions in Eastern Europe and Russia  could lead to gas shortages.     That  might soften their cough a bit.

[billi]

Tell the Granny ,  that it is the first time in her live  , that she sees true costs of energy

[billt]

Could you point out the specific drivel that you're talking about? Doesn't seem particularly bad for a Mail article to me.

[dimengineer]

There is a genuine issue here, in that people who can afford it (me) are being paid off over 25 years at an extravagent rate to generate solar electricity. This is being paid for by everybody.

OK, so we have been used to cheap energy, but it does seem to be a bit of an inefficient way of doing things. (Bribing me, that is)

Tim

[StationHouse]

The other genuine issue is that granny has not bothered saving/planning for her retirement as so many don't bother doing now... If £40 is such a big issue to some folk then f**k me what is the world comming to...

[billi]

I agree  the balance  has  to be adjusted , thats why FIT payments decrease  towards no FIT payments in the future , cause these FIT payments  are enabling  a technology to be competitive against  common  power supply  methods , that drill holes in the globe  and pump out goods  , that belong to each individual on the planet ,  but  sold on with high profit to each of us

Billi

[billt]

The other genuine issue is that granny has not bothered saving/planning for her retirement as so many don't bother doing now... If £40 is such a big issue to some folk then f**k me what is the world comming to...

You obviously don't live off a low income. Most people don't have the money to save for retirement after paying living expenses, especially as most of the savings would be siphoned off into the pockets of FAs and insurance companies. Retirement planning only works for the well off, normal people have to rely on the state pension.

I can assure you that £40 is significant to many people, although not to you. But it is the inequitable reverse Robin Hood principal which is objectionable, especially as all those PV systems have no measurable effect on either power generation or carbon emissions.

[series530]

typical daily Mail article if you ask me - the paper for the blue rinse serial wingers and complainers brigade.

Most of granny's 40 quid is going toward the profit that each of the energy companies make and the dividends to the shareholders. She can have as much of my export energy as she wishes ... but I bet she wont be charged 3.1p per Kwh for it.

[M]

http://blogs.thisismoney.co.uk/2012/01/why-should-my-granny-pay-40-a-year-for-your-solar-energy.html#comments

Why should my granny pay £40 a year for your solar energy?

The debacle over payments for solar energy is dragging on.

We currently have an excessively generous system that pays people with solar panels 43p per kWh to generate energy - £1,000 a year, on average, according to the Energy Saving Trust.

This system, known as the feed in tariff, was designed to incentivise people to ‘go green’ and is paid for by all consumers, in the form of higher energy bills.

But if these lavish payments continue, it will add £40 a year to every household’s electricity bill by 2020. The Government had budgeted for each household to pay just £23 – an already iniquitous sum.

please add some comments to counterbalance some of the drivel on there...

Some suggestions:
Total green tariff on electricity bill is 10%, about £30 to £40.

Estimated total cost of PV FITs is £8bn = about £14pa per household for 25 years, that's assuming the scheme expands about another 75% from where it is now. E.g. another 200k houses at 21p, and again at 10p and 5p.
However you could argue that domestic electric only accounts for 35% of consumption, so £14 * 0.35 = £5pa

Also, pensioners benefit from the Green Tariff (in which FITs sits) via free insulation (loft and cavity), energy bulbs, advice etc.
Also, pensioners benefit through general taxation with annual winter fuel payments, and if cold enough, weekly cold weather payments.

I asked my father about this subject a while ago, he's 74. He thinks pensioners like him do extremely well through subsidies and taxation. Plus he thinks it's important to help the next generation(s). He's saving about £100 a year from free insulation, and about £20pa from free CFL's.

Lastly, and thin ice here, but if you want to be pedantic, 43p is paid for infrastructure cost reimbursement, technically paid 3.1p for exported electricity.

Mart.

[DaveSnafu]

Youngsters are coming to realise that nana and grandad had a choice,(the same one we have) and they decided to kick the can down the road a bit, they had to promise to give their childrens future labour to the tax man.
The kids are not gonna thank us for it.

[desperate]

My Granny gets four hundred quid winter fuel allowance, easily pays for her juice and a bit, it could be upped a bit more??

Desp

[Bodidly]

My parents are great-grandparents and they had PV with FIT a year before me.

[Tombo]

The FiT is a regressive form of taxation that effects the poor far more than the rich.

[StationHouse]

The FiT is a regressive form of taxation that effects the poor far more than the rich.

Singling out FITs is just plain stupid... When the economy was booming every single govt, council and quango weasel peed money up the wall on pointless schemes. This is a heavily taxed country in general and hence prices for goods and services are very high.  FITs is a blown up nothing... Nice we diversion to all the other 4 letter words are my favorite going on in rip of Britain. In fact looking back over the years every single good tax efficient savings scheme be it cash or shares has been torn up to earn our wasteful govts. even more money...................... The poor have never had it so good in this country when benefits pays more than hardworking peoples wages.................. I mean f**k me is the world ruled by stupid folk.................