The feed-in-tariff (FiT) announcement has been long awaited in both the solar and wind power industries – today, it was confirmed what the changes would be for 2016 and beyond.
In a document published this morning, the Department of Energy and Climate Change (DECC) has confirmed that small scale renewables will see cuts from 8 February – however, this is an improvement from what was expected – there were concerns that the scheme would close completely, but this is now not the case.
While the FiT for the smallest domestic photovoltaic panels will be cut by 65% (to 4.39p/kWh), this is much better that the original proposal to cut the tariff by 87% (to 1.63p/kWh). The deadline for solar projects to receive the current tariffs is now 15th January.
As expected, the news has caused mixed feelings within the industry, here are the thoughts of five industry leaders:
Amber Rudd, Energy Secretary
"My priority is to ensure energy bills for hardworking families and businesses are kept as low as possible while ensuring there is a sensible level of support for low carbon technologies that represent value for money."
“We have to get the balance right, and I am clear that subsidies should be temporary, not part of a permanent business model. When the cost of technologies comes down, so should the consumer-funded support.”
Nina Skorupska, Chief Executive, at Renewable Energy Association
“The past six months have been challenging for our members and the renewables industry, but we now have to draw a line and turn our attention to building a stable, robust and enduring industry leading to a business built without subsidy."
James Court, Head of Policy and External Affairs at Renewable Energy Association
“The Government have taken on board many of the common-sense suggestions from the REA and the wider industry, such as bringing back pre-accreditation for long lead schemes, reallocating budgets from under deployed technologies and increasing deployment caps for solar.
“The tariffs are still very challenging, and while the changes will help save some in the industry, it remains that many will be exciting. But this is an improvement, and may still provide the base to get to post-subsidy."
Paul Barwell, Chief Executive at the Solar Trade Association
“Government has partially listened. It’s not what we needed, but it’s better than the original proposals, and we will continue to push for a better deal for what will inevitably be a more consolidated industry with fewer companies.
“However, in a world that has just committed to strengthened climate action in Paris and which sees solar as the future, the UK government needs to get behind the British solar industry. Allocating only around 1% of its clean power budget to new solar is too little, particularly when solar is now so cost-effective. Poor ambition for solar risks missing out on not only our renewable energy targets in the UK, but on the world’s greatest economic opportunity too.”
“The industry will certainly try its hardest, but we will be pressing the government to do much more to boost solar power.”
Anthony Lee, Managing Director at Bowler Energy
“The announcement of the 65% reduction in feed-in-tariff is better than anticipated considering the negative publicity over the past few months. For companies looking to invest in solar technologies, this is good news as they will still benefit from cheaper energy bills and an overall return on investment.”
“As always, Bowler Energy are here to advise any company wishing to take the next steps in solar energy.”
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