Feed-in-tariff May Be Cut
It has been indicated by the government that the feed-in-tariff for those with small scale solar installations may be cut due to unsustainable returns.
The Energy Minister Greg Barker has commented this week that plans for adjustments to the tariff will be announced next week. He has said that the returns investors are getting on the panels are funded by consumer energy bills and do not reflect the fact that the cost of installation has fallen by as much as 70% in the last two years.
The subsidies offered to large scale solar installations were cut earlier this year by up to 70%, however it has come as a blow to the industry that further cuts for smaller scale investments will also be made as this will directly impact on homeowners.
Barker has pointed out that the growth in solar panels has come from consumers making the most of government backed subsidies and has seen those who can afford to do so making the most of the money on offer. This has been out of reach for the average person. He says this cannot be fair.
Homeowners are being warned by experts that if they plan on installing solar panels they should do so before any changes to the feed-in-tariff are made. This could be as early as April next year.