Govt proposes cuts to solar incentives - 01/11/2011
People looking to compare energy suppliers to find a cheap electricity deal using renewable sources may be interested to hear of proposed changes to solar Feed-in Tariffs (FITs).
Energy minister Greg Barker has announced a consultation on planned changes to the incentives offered for fitting photovoltaic (PV) panels that will see payments for arrays producing 4kW or less cut from the current rate of 43.3p/kWh for the first two years to 21p/kWh.
These new tariffs would apply from April 1st 2012, but any applications made after December 12th this year will receive the new rates, though existing installations and those approved before this date will continue to obtain the existing deal.
Mr Barker explained that, as costs for PV systems have fallen by over 30 per cent since the FIT scheme was introduced, "returns for investors in solar PV ... are simply not sustainable".
The changes were criticised by the Labour party, with shadow energy and climate change secretary Caroline Flint saying they will cost thousands of jobs and put solar firms out of business, as well as penalise families wishing to go green.
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