The risks of Malta’s dependence on non-renewable energy sources started to be tackled with relative success a few years ago when the government introduced schemes to encourage both businesses and individuals to invest in solar power equipment that provided ‘free’ electricity.

Despite consumers’ initial hesitation to take up the subsidy offers linked to these schemes, public interest slowly built up.

Now there is significant interest from both businesses and individuals to consider investing in solar energy systems.

One of their most important selling points are the incentives given by the government in the form of grants as well as guaranteed feed-in tariffs for those selling electricity to Enemalta.

Now some suppliers of PV panels are complaining that their sales are stalling because the government has not published the new feed-in rates that should have become applicable on October 1, 2013. Domestic sales of PV panels remained buoyant partly because this uncertainly about feed-in rates does not exist and because financing for such purchases is eased by a scheme operated by a local bank.

So what is behind this disruption in the continuation of the programme to encourage businesses to invest in solar energy? One reason is undoubtedly the way that the suppliers who could provide such equipment under this programme were selected.

When only five out of 40 possible suppliers were selected to participate, the transparency and fairness of the programme was challenged.

While the government argued this limitation was necessary to curb abuse that had cropped up in the initial phases of the programme, a better way could have been found to provide a level playing field for all PV panel suppliers.

Another reason behind the delays in re-activating this scheme is the changing economics of the solar energy equipment industry. A few years ago, the cost of electricity generated by such equipment was significantly higher than that generated by fossil fuel, so there was little, if any, incentive for businesses or individuals to invest in the new solar technology, unless governments subsidised capital costs and guaranteed attractive feed-in rates to investors.

But generating green energy today has become significantly cheaper and governments in most countries are cutting back, if not completely eliminating, the capital expenditure subsidies they granted up to a few years ago.

The same phenomenon is affecting the determination of the feed-in rates offered under government-sponsored green energy schemes.

While the dynamics determining the pricing of green energy are changing, generating such energy will always remain a strategic priority for both economic and ecological reasons. It will be a shame if the improvement that Malta has achieved in this field during the past few years is lost because the government fails to offer sensible incentives to businesses and individuals that are inclined to invest in solar energy systems.

The EU is still providing funds to encourage member states to promote higher investment in renewable energy.

It is therefore important that our policy makers consult with business organisations as well as consumer representatives to come up with incentives for people to invest in green energy as this will continue to be a national priority.

Taxpayers’ interests should also be protected by fine tuning these State funded schemes to encourage genuine interest in renewable energy rather than speculation for a quick gain through badly defined schemes.

The time for reactivating interest in green energy is now.