Stay of Execution for Solar Industry as Government Hesitates on Plans to Reduce the Feed in Tariff
Author: Jonathan Whiting
Published: Tuesday, 24 November 2015
In a last minute reprieve for the solar industry, The Department of Energy and Climate Change (DECC) has suggested it may not slash the feed in tariff (FiT) in January, as previously suggested. However, they may still enact the changes in March 2016.
It has been reported that the DECC has received more than 55,000 responses to their proposed plans and so working through these responses, coupled with some ambiguity over the standstill period that has to be observed, has caused this significant delay.
There has been widespread concern about the cuts to solar funding since it was announced earlier this year that subsidies for solar would be reduced by 87% in 2016. Where households could previously earn up to £13,450 over 20 years, the new deal would see home owners brining in only £5,320 for the same period.
News of the delay will come as a welcome relief for many solar companies. Two solar brands have already folded since the announcement was made, with others warning of further job losses to come. Conversely, in the past couple of months many companies have actually seen a sudden surge in requests for installation as home owners clamour to get solar panels installed before the FiT scheme ends.
This delay may give solar companies three more months of good sales and the chance to voice their concerns once more and attempt to get the DECC to reverse these damaging cuts.
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