Responding to a letter from the MD of Orta Solar (see related story- ‘Solar Boss accuses Barker of telling Parliament “myths”‘), which claims the Climate Change Minister mislead Parliament, DECC have argued their case behind the reasoning for the shock subsidy slashing.
A DECC Spokesperson responded to the three ‘myths’ outlined by Mr Paroe of Orta Solar. DECC said in a statement: “Myth 1- ‘70% price drops’- Independent research commissioned by DECC estimated that the installed cost of solar PV has dropped by at least 30% between early 2010 and July 2011.
“Myth 2- “Solar is the most subsidised form of power generation”- Solar is currently the most subsidised form of power generation: the 43 p/kWh tariff for small-scale (up to 4kW installations) solar PV is 7.1 p/kWh higher than the next highest subsidy, for small-scale wind (up to 1.5 kW).
“Myth 3- We’re reducing Solar FiT’s to be aligned with those paid in Germany. Our proposed solar PV tariffs for domestic customers will match the equivalent tariff in Germany from 2012. Germany has recently announced that it is reducing its tariffs for solar PV from 1 January 2012 by 15%.”
The solar industry has been sent reeling following the massive cuts in support.
Related story: Solar boss accuses Barker of telling Parliament “myths”