UK announces cut in solar subsidies

Subsidies for small scale solar electricity panels on homes are to be cut by 64% by the government.

The subsidies will be cut by 64%, which is less than the previous proposal of 87% which was highly criticised. The cuts came just days after attending the climate change conference in Paris, where agreements where made to move to a low-carbon energy future.

From February, roof top solar installers will be payed 4.39p per kilowatt, as opposed the current 12.47p.

In the report, the government said: “The government has revised tariffs based on the evidence received. Most of the new tariffs provide for a higher rate of return than previously consulted on and, in most cases, the level of support has increased beyond levels proposed.”

An impact assessment study undertaken by the Department of Energy and Climate Change admits that up to 18,700 of the industry’s total 32,000 jobs could be at risk, with the industry saying that the summer cuts had already cost the industry 6,500 jobs.

UK Energy Secretary Amber Rudd said: “My priority is to ensure energy bills for hardworking families and businesses are kept as low as possible whilst ensuring there is a sensible level of support for low carbon technologies that represent value for money.

“We have to get the balance right and I am clear that subsidies should be temporary, not part of a permanent business model.

The solar industry is worried about a new government cap on the volume of solar installations.

Environmental group Friends of the Earth referred to the cuts as a “hammer blow”.

“The cuts come just a day after the government pushed through plans to allow fracking beneath National Parks and protected areas.

“It’s outrageous that the government continues to hand out billions of pounds in subsidies every year to climate-wrecking fossil fuels, while trying to block the clean energy sources we urgently need.”

Friends of the Earth’s renewable energy campaigner Alasdair Cameron said: “These huge, misguided cuts to UK solar are a massive blow for jobs and the economy, and further undermine the government’s already tarnished credibility on tackling climate change.”

Announcements today have given a total reduction of £500M-£600M for the Levy Control Framework overspend, with the government saying that by 2019, there would be £100M overall cap on spending.

 

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