UK cautioned over Feed-In Tariff review

The European Photovoltaic Industry Association (EPIA) has warned the UK Government to act with care to avoid creating market uncertainty.

EPIA is concerned that a period of uncertainty will be created while tariffs are reviewed by the Government, as this could have a knock on effect on the UK solar market’s ability to attract investment.

A comprehensive review of the Feed-In Tariff was announced at the beginning of the month. The intention is to protect small scale domestic solar installation by ensuring larger companies do not monopolise all tariff funds.

On February 7, Chris Huhne, Secretary of State for Energy and Climate Change, confirmed that the tariff review had been initiated after 20,000 photovoltaic installations were registered under the scheme. Although Mr Huhne sees the tariff as a success so far he said he was “concerned” about the impact of large scale solar installations.

In spite of positive intentions, EPIA secretary general Eleni Despotou has stated that any uncertainty in the UK market could impact it, especially as the tariff is relatively new.

She said: “In times of economic crisis, it is essential to encourage the development of a promising sector such as photovoltaics, which can create thousands of local jobs. The UK should raise its ambition and widely deploy photovoltaics.”

The EPIA has stated: “The EPIA is willing to provide any advice to the UK Government given its experience of FIT reviews, in order to secure as much stability as possible to the emerging UK industry.”

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