Government ‘unlikely’ to contain solar FiTs spending

The Government is “unlikely” to be able to contain spending on the solar Feed-in Tariff, suggest analysts at PricewaterhouseCoopers (PwC). This is because the number of solar panels installed shot […]

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By Vicky Ellis

The Government is “unlikely” to be able to contain spending on the solar Feed-in Tariff, suggest analysts at PricewaterhouseCoopers (PwC).

This is because the number of solar panels installed shot up at the end of the year and the “fundamental problems” with the tariff remain, despite the outcome of the recent Court of Appeal case, PwC suggested.

Daniel Guttman, director of PwC renewables and clean tech said: “The fundamental problem has not gone away and installations between October and the December deadline have gone through the roof. The government is now unlikely to be able to contain spending within the original envelope and will have to extend it. We now have between 800 and 1000 MW installed capacity; far beyond what was ever planned.

“We have long argued that a regular review of FiTs within a well-coordinated, well communicated and adhered to timetable is necessary. Tariffs have to, and will come down, it’s a question of how the industry will respond. There are sporadic reports of installers lowering prices of panels far enough to make returns attractive for consumers, so there is room for manoeuvre.”