Feed-in-Tariff Will Be Cut
Energy minister Greg Barker has announced this week that the tariff for solar panels will be cut, as expected. In addition those homes which have solar panels will need to ensure a minimum standard of energy efficiency to qualify for the feed-in-tariff. It is hoped that this will encourage solar panel fitters to diversify into other home improvement areas, improving the construction and building industry.
The announcement was made at the Birmingham Solar Power UK conference. It was confirmed that the current returns on solar power for the domestic market are unsustainable and that a cut will be made. It has been estimated that the cut could drop the tariff by one half to around 20p.
Those in the industry have commented that a cut such as this could be devastating for solar installation businesses, who have made huge investments in recent years on the back of the continued government support. Solar companies have said that they need a level of at least 28p to make their business viable as it will allow those who make a purchase to break even over 10-12 years.
Meanwhile Barker has said that it is about ensuring that the available money is spread more widely and will offer a chance for more opportunities for those businesses already offering solar panels.