Solar ‘no longer cost effective’ under new proposals

Solar installations will no longer be cost effective for householders under the new proposed Feed-in Tariff rates. That’s according to Philip Sellwood, Chief Executive of the Energy Saving Trust. It […]

Register now!

By admin

Solar installations will no longer be cost effective for householders under the new proposed Feed-in Tariff rates.

That’s according to Philip Sellwood, Chief Executive of the Energy Saving Trust.

It follows the UK Government proposing to cut incentives for solar power and threatening to close the Feed-in Tariff (FiT) scheme.

FiTs provide householders and businesses payments for the energy they generate and additional payments for power which is exported to the grid.

Mr Sellwood added: “Based on the new rate, the price of a typical solar panel installation will need to fall by more than £800 for an investment in this technology to be cost-neutral for a typical home.”

He went on to say the cuts have “come too soon and are too sharp and there is little incentive now for the consumer”.

Scottish Energy Minister Fergus Ewing said it is “another attack on renewables and green energy” which is “particularly concerning coming just a few months before the crucial climate change talks taking place in Paris”.

He added: “It is hugely disappointing the UK Government did not seek to engage in any meaningful way with the Scottish Government prior to publication.”

Rebecca Williams, WWF-UK’s Generation Specialist said the government “is missing the bigger picture”.

She added: “For a small short-term saving, these cuts risk pulling the plug on the growing UK solar industry which has been creating jobs, cutting costs and making a vital contribution to meeting our climate change targets over the last five years.”

However Richard Warren, Senior Climate & Environment Policy Adviser at Engineering Employers’ Federation, added: “With the costs of government energy policy surpassing previous projections and the Levy Control Framework budget already looking like it’s been maxed out, government is right to be getting to grips with the issue.

“DECC’s number one priority has to be delivering emissions reduction at the least cost to consumers and the FiTs scheme is palpably incapable of doing this at present.”

The news follows the government’s announcement to scrap subsidies for onshore wind from April 2016.