Feed-In Tariff Cuts potentially delayed…

Energy and climate change secretary Greg Barker has confirmed the government is planning to delay proposed cuts to Feed-in Tariffs in July.  We’ll keep you updated as more details emerge but in the meantime see below for the latest, up-to-date info…

The next round of FiT cuts could be delayed by up to a month as a result of low solar installation figures. This could change the results of the latest consultation, which was due to map out the expected tariff rates from July 1.

Recent installation figures show that demand has decreased from a four-weekly average of 71MW over the past 12 months to a disappointing 17MW. This drop is thought to be caused by a number of factors, including the introduction of energy efficiency criteria, consumer confidence and the UK recession.  As a result of these figures, many have called on Government to delay the July 1st cuts.

Last night, Climate Change Minister Greg Barker confirmed industry rumours via a post on Twitter, that the tariff cuts could be delayed.  “Having listened carefully to industry, we are looking at scope for pushing back the next proposed reduction in solar feed-in tariffs.?

?We have listened carefully to the solar industry and are considering moving the date of the feed-in tariff changes as a result of concerns,? explained a DECC spokesperson.

DECC also confirmed that an official announcement on this will be published shortly along with the results of the feed-in tariff consultation. ?We know everyone is keen to see this, so we are working to publish the consultation as soon as possible,? the spokesperson continued.

DECC was unable to confirm the exact timescale of the delay; however industry conjecture suggests cuts will come into effect approximately one month later on August 1. A statement on this is also expected shortly.

This news follows the Solar Trade Association?s calls to halt the tariff reductions. The association has also requested a meeting with Barker to discuss ways to revive the market uptake.

?We are facing an unusual set of challenges right now and it is fundamentally a problem of confidence and perception,? explained Alan Aldridge, the STA Chairman. ?We need all champions of solar ? in Government, industry and elsewhere ? to help us get the message out that solar is still a great investment, particularly with energy bills on the rise again.

?But we also need Government to show real sensitivity to the current situation and work with us to create a stable and growing market.?

James Eades

By: James Eades

Operations Director, James Eades is EnergyMyWay's in-house expert on renewable energy policy, microgeneration technologies and best practice in the renewable energy industry.