Gov’t solar proposals spell ‘armageddon’ for industry

Government proposals to drastically speed up the reduction in feed-in-tariffs available for solar power could spell “armegeddon” for the industry, a renewable energy company has claimed.

According to Eco Environments, “most alarming” is the news that the Fit rate for domestic solar PV schemes “could plummet as low” as 13.6p from 1 July this year.

This follows the news that the Department for Energy and Climate Change is seeking permission to appeal to the Supreme Court over its cut to solar Fit tariffs, after the High Court refused the government’s application to challenge a judge’s ruling that the move is “illegal”.

The High Court’s refusal to appeal the verdict means that customers registering the installations by 3 March can still lock-in higher rates, with a lower rate not being introduced until April.

Fits are payments made to households, communities and businesses that generate green electricity through solar panels.

The ruling means that any Solar PV installations installed, commissioned and registered between 12 December last year and 3 March this year will receive the higher Fits rate of 43.3p per kilo watt hour for the next 25 years.

David Hunt, a director with Eco Environments, said: “A reduction to a tariff as low as 13.6p in just a few months’ time is the equivalent of armageddon for the solar industry.

“There is simply no way that product and installation costs will drop that much in such a short period of time to make such a low tariff rate economically viable.

“Together with a dramatic slashing of Fit rates in July, ministers are also proposing ongoing six-month reviews, a reduction from 25 to 20 years for the Fit rates being applicable for solar PV and the removal of RPI-linked payments.”

Mr Hunt claimed that these cuts and proposals “fly in the face” of minister of state for energy and climate change Greg Barker’s declared ambition to encourage the installation of 22GW of solar before 2020.

He said: “Yet again the government, even with a newly appointed energy secretary in Ed Davey, seem happy to watch the solar industry lurch from one crisis to the next.

“It is crucial that Ministers listen properly to the industry this time and ensure that the consultation process on future tariffs is a robust process rather than last time’s sham.

“Rather than looking to encourage consumers to embrace renewable energy technologies, you would think the Government was trying to turn people away from them.”

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