Government Delays Solar Cuts in U.K.

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The solar industry in the U.K. is breathing a sigh of relief this week following the government's decision to delay the next round of cuts to the feed-in-tariff (FiT).

After months of campaigning, the government has heeded calls for a delay to more cuts to the subsidies paid out to firms that invest in solar power projects.

The government missed the parliamentary deadline to announce the proposed cuts for July last week. This was followed later by a statement from Climate Change Minister, Greg Barker, who said: "Having listened carefully to industry, we are looking at scope for pushing back a little the next proposed reduction in solar feed-in tariffs."

In the House of commons, Energy and Climate Change Secretary, Ed Davey, confirmed that some changes were in the pipeline but denied there would be any major reprieve for the sector. He confirmed that the government was "tweaking the start date" for the next round of cuts but said that the solar sector should not be expecting "a massive change".

The solar power sector in the U.K. is still immature and has been fighting an ongoing battle with the government over a series of deep cuts to the FiT. Last March, the solar industry accused the government of 'strangling the solar industry at birth' when it revealed plans to cut the FiT for large scale solar projects by up to 70%. Last October the government cut the support for solar, hydropower and onshore wind projects. For additional information, see October 25, 2011, article - U.K. Changes Support for Renewable Energy.

Paul Barwell, Chief Executive of the Solar Trade Association (STA) commented: "It is very encouraging for the future that Government is listening to industry concerns, but we need certainty as soon as possible on the details of when and what the next tariff adjustments will be."

For most of 2012, the government and the solar sector have been locked in battle through the courts over the proposed cuts. The solar sector won its battle over the last round of cuts but it is widely expected that the government will push ahead with more severe cuts later in the year. For additional information, see March 30, 2012, article - U.K. Government Loses Solar Fight.

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