The government’s 50% cut to feed-in tariffs (FITs) for domestic solar installations, announced this 31st of October 2011, has incurred the wrath of the solar industry in United Kingdom. The action focuses on the recent announcement by the Department of Energy and Climate Change (DECC) to cut the rate paid to householders with solar panels under the feed-in tariff from 43p per kWh to 21p, significantly reducing the attractiveness of the technology to customers and investors. Any projects registered after December 12, 2011 would receive the lower tariff from April 1, 2012 onwards.
Recent cuts have been opposed countrywide by various environmental organizations and solar companies. New analysis by strategic energy consultants Element Energy, commissioned by Friends of the Earth (FOE) and the Cut Don't Kill campaign has revealed that the Government's planned cut to the Solar PV Feed-in Tariff will destroy up to 29,000 jobs and cause the Treasury to lose up to £230 million a year in tax income. The research highlights the remarkable fact that this cut will cause the Government to lose sizeable amounts of money through reduced income taxes and National Insurance. According to Renewable Energy Association (REA) survey, 33% companies likely to face closure due to the cuts
FOE has stated cuts as unlawful and has taken a legal action against government. The government has confirmed that it would defend the challenge at judicial review.
What is your vision about future of solar industry in the United Kingdom after these controversial cuts, do you think the United Kingdom government will be able to meet European Union’s mandatory renewable energy and emission reduction goals?
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