Solar Feed-in Tariff cuts could mean 98% reduction in support budget
According to a new analysis by the Solar Trade Association (STA) the dramatic cuts to solar Feed-in Tariffs (FiT) proposed in the recent government consultation could result in a 98% decrease in budgetary support.
Earlier this year the government published a consultation outlining potential plans to cut the domestic FiT tariff by 87%. Whilst this consultation already shook the solar industry upon its release, new research has been published showing how severe the impact of these cuts could be.
The report, which was published on 1 October by the STA, uncovered that if the proposed cuts go ahead, spending would drop from around £70 million per year to just £2 million. This amount totals only £7 million of support for deployment under the FiT scheme for the next 3 years. For comparison, this is the same amount Buckinghamshire County Council spends on potholes in a single year, according to the STA.
Paul Barwell, CEO of the Solar Trade Association, commented that "Allocating £7million of support for solar power - the world's fastest growing clean energy solution - is absurd. This does not constitute a serious energy policy."
1 October not only saw these findings revealed but also the final FiT rate affected by standard digression come in before the deep cuts to be made by the government at the start of 2016. Our advice to homeowners who want to take advantage of the FiT at its current rate of 12.47p/kWh (for a 4kW or less system) is to act now.
Having your solar panels installed by an MCS accredited installer and joining the FiT scheme before 31 December 2015 should mean you benefit from the current rates. Solar Guide only works with MCS certified companies and can provide you with free, non obligation quotes to compare.