By Christine Ottery
The Government’s new feed in tariff (FIT) policy, announced in early February, is designed to encourage householders to invest in renewable energy by giving returns on any electricity generated and exported to the grid.
In practice this means laying out an initial £12,500 to buy and install solar panels and then reaping £1,000 a year for the next 25 years. It makes firm financial sense to buy into FITs, but what will determine people’s choice to invest when the policy comes into play on 1 April? “It is psychological, partly, and it’s partly the real world. It’s hard to draw the line,” says Paul Stern, the world’s leading environmental psychologist.
Solar photovoltaic panels. Photo credit: Julian_
The Energy Saving Trust (EST), part of the Department of Energy and Climate Change (DECC), hope that once FIT is up and running it will stimulate small energy company start-ups to install the panels free-of-charge for convenience and finance reasons, then charge you a rent on your electricity while bagging the tariff. This will be made possible because householders will be able to assign the tariff rights to others.
The Good Energy Company is already one step ahead, as it has been operating a system similar to FITs for the past four years called the “Generate your own” scheme which facilitates the adoption of microgeneration, meaning small-scale production of energy. They claim to be able to get people started in microgeneration with an investment of around £4,000.
Information, information, information
Even if the costs of microgeneration become accessible for a larger number of people, there are still several barriers to committing to it. One of these is simply information. “Some of psychology is about human information processing, and this is a kind of a household decision that is unfamiliar and easy to postpone,” says Stern. He says that people will have many questions about the implications of investing in solar PV, such as: how much money they will get in return, what the benefits are, and the practicalities of installation and living with solar PV.
The EST is working hard to provide comprehensive information on renewables and microgeneration on their website, www.energysavingtrust.org.uk. The Renewables Strategy Manager of EST, Rob Lewis, says: “There is already a home energy selector tool on our website, helping people to understand which technologies are suitable for their house. We will also be putting a new tool online where you can input the technology you will want to install and it calculates what the cumulative cashflow will be in year one, including loan repayments, if you have them.”
Another possible solution to the challenge of making the public informed is local demonstrations that would get people talking about solar PV, and crucially, they would be able to see and interact with the technology. “It makes it more real. This is a very foreign thing for most people,” says Stern.
There is much potential for influencing public opinion. Householders could influence communities to invest in community projects such as solar PV for the community hall, for example. Also, Stern says that two out of three successful renewables co-ops in Washington DC were initiated by individuals who were environmental professionals. Conversely, “There is a big potential for local authorities and local community groups to do community microgeneration in a demonstration role which can then lead to household developments after that,” says Professor Patrick Devine-Wright, one of the UK’s top environmental psychology experts.
Solar photovoltaic cells. Photo credit: Julian_
Green halo
Householders that already have PV installed are likely to be very eco-conscious, and therefore it may not be realistic to expect further changes to their lifestyle. Prof Devine-Wright says that: “As is often the case with solar PV panels, the kinds of people who install it on their homes will already have pretty green attitudes, or they wouldn’t be bothered spending so much of their money on a pretty expensive technology.” This is partly because installing solar PV is not the best value-for-money measure to reduce a building’s carbon footprint. Tackling loft and cavity wall insulation is more cost effective, and should be the first port-of-call for house owners.
However, the FIT could increase the amount of people who are reducing the carbon footprint of their homes by the promise of substantial financial return. Also those who already have solar PV might not have a squeaky-clean carbon footprint but they could be influenced into greening up their act further. Dr James Keirstead at Imperial College, London, wrote his PhD on the way people responded to having solar PV installed in their home, and found: “Some people didn’t realize they could make changes to their energy consumption, and having PV and having the information made them aware that, yes, it was possible.”
However, a researcher also at Imperial, Dr Dana Abi Ghanem, says that there is the fear that because people might view their energy supply as “free” because is from an endless supply of solar radiation, they might actually increase their energy consumption.
A paper from a group of researchers at the University of Toronto seeks to explain this kind of behaviour. It explores the relationship between the marketing of green products and their purchase, suggesting that exposure to something that people attach social or moral values to results in a halo effect whereby people will act in a more environmentally-friendly way. But, surprisingly, acting upon your values can make you more selfish. One of the researchers, Chen-Bo Zong, says: “I think it is possible that people who preserve energy in one way may feel entitled to waste energy or material in another.
“The key is whether they see the energy-saving behavior as something good and positive, which enhances their self-image,” says Zong.
Perhaps this explains why a report published by the EST says that: “Being seen to be green is popular among 70 per cent of the population but only 40 per cent are taking action.”
However, Zong also added: “If people see those activities as necessary and form habits doing so, such a licensing effect may be reduced.”
Using your smarts
Regardless of whether you have PV panels on your roof, energy displays could have a far more significant effect on your green virtue. Dr Abi Ghanem says: “If it is displayed prominently in a way that increases exposure, people are more likely to reduce their energy consumption. Energy starts to exist within the house and people become more conscious of it.” This makes sense because electricity is invisible, and energy meters provide visible reminders of how much energy you are creating through microgeneration.
Prof Devine-Wright agrees, and says that microgeneration displays and smart metering should be rolled out together, so that people can interact with how much energy they are producing, how much money they are making, and how much energy they are consuming.“We need more engagement with energy consumption if we are going to reduce demand and become more sustainable in our patterns of energy consumption,” he says.
What people are saying