The UK government has capped spending for the Feed-In Tariff scheme in 2014/15 from £400 million to £360 million. Bruce Cross, MD of solar technology manufacturer GB-Sol is worried this will undermine investor confidence.
Mr Cross said: “Once you put a cap on the tariff, an investor developing a project cannot be sure that he will be able to get the FiT payments when he is finally connected. This increases the investor risks and so reduces the potential for the industry to expand to help meet the UK carbon reduction target.“
The generation of clean electricity has been encouraged by the introduction of the FIT scheme. Under the scheme energy suppliers would pay householders and communities who generate their own electricity from renewable or low carbon sources such as solar panels. It also encourages people to invest their own money to build green power stations with the commitment to pay a guaranteed price for this power over a fixed period.
Mr Cross added: “By keeping the Feed-In Tariff on track we will increase jobs and put back into the public purse much of that which is spent in the form of taxation, putting people into employment, lowering imports, increasing exports and improving future energy diversity.“