Grid parity is reached when the energy generated by renewable sources is of equal price or less, than national grid electricity. Reaching grid parity is a very important drive for all governments because it will make the cost of renewable energy an affordable option to non renewable sources. If there is no difference in price between renewable and non renewable energy or renewable energy becomes cheaper than energy produced by the national grid, then consumers will naturally choose renewable sources if the availability is sufficient. If Feed-in Tariffs do their job properly, there will eventually be enough producers of renewable energy to supply most of the country.
Feed in Tariffs in the UK
Reaching grid parity is actively pushed by introducing various incentivising schemes. A cleaner and greener future is encouraged by proactive governments via the introduction of Feed in Tariffs for Renewable Energy and the UK government launched a Feed in Tariff on the 1st of April 2010. The Feed in Tariff will pay households or businesses for every kilowatt of power produced using renewable energy sources like solar panels or wind turbines. Households and businesses meeting specific criteria are eligible for the cash incentive which is estimated to reach values over £1000 a year for the average home. Exact cash value can be much higher for larger solar panel installations or where more electricity is sold to the national grid. Payments are made whether or not the electricity is used by the household or exported to the grid. However, all electricity that is exported to the national grid will be paid at a higher rate than that which is used at the installation location.
Glastonbury Festival Leads the Way
Glastonbury Festival has recently fitted 1,116 photovoltaic solar panels to the roof of a cowshed at Worthy Farm in an installation that is reported to be the largest private solar panel system installation in the United Kingdom. It is estimated that Michael Eavis and the photovoltaic (PV) solar array at Worthy Farm will produce enough power to supply the equivalent of 40 UK homes each year. It is estimated that Worthy Farm could make £60,000 profit per year from the UK Feed in Tariff.