Phase 2 of FiTs Consultation Released Today: Further Cuts Coming This Summer

09 Feb 2012

Today, the Government released the next phase of its review of Feed-in Tariff. Whilst it seems that the Government is starting to take solar energy more seriously and has in principle increased its ambition for solar energy they are planning significant further cuts beyond the 50% that has already been imposed in the summer. Here is our response;

“The Solar Industry has not yet recovered from 50% cuts, so to face further severe cuts just a couple of months later will be very, very difficult. Solar PV will continue to reduce in cost so that it can compete with mainstream energy sources, but the industry has to be given a chance to get off the ground. The subsidy given to solar energy is a tiny fraction of the £120* a year per household we give in taxes to nuclear energy, lets give solar fair treatment.

A key failing of the Government’s latest proposals is that they specifically target roof-rental or ‘free solar’ schemes by giving a lower feed-in tariff rate for these projects. The Government claim that these schemes benefit from ‘economies of scale’ when actually providing such schemes costs more because of extra paperwork, increased taxes and giving away the free electricity. By cutting out these schemes for homeowners struggling with energy bills, solar PV will be reserved simply for those who have thousands of pounds to spend.”