DECC's Feed-in-Tariff revisions will mean large-scale solar farms like those planned in the
South West will be a lot less efficient. Photo by mcmees24 on Flickr


Cuts to subsidies for solar projects over 50 kw have been announced by the Department of Energy and Climate Change, a move which has been labelled by industry commentators as one which will “effectively kill the UK solar industry”.

The new tariffs are a result of a recent public consultation which closed on 6 May. DECC says the review looked at “reducing the tariffs for large scale solar to protect the money available for small scale projects and the range of technologies supported under this scheme.”

But campaigners Friends of the Earth warns that reduced payments are “likely to lead to a reduction in the development of community-owned green energy scheme and undermine the solar industry’s potential to create tens of thousands of new jobs.”

From the 1 August, solar installations between 50 kw and 150 kw will receive 19p per kWh produced – a reduction from 32.9p. Installations of up to 250 kw will receive a tariff of 15p per kwh (reduced from 30.7p) and field-size installations between 250kw and 5 megawatts will receive half of this amount at just 8.5p per kwh. This size was also previously paid 30.7p per kwh.

Energy and climate change minister Greg Barker said: “I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy.

“Without action the scheme would be overwhelmed.  The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”

The review from DECC was instigated following a realisation that plans for large-scale solar project was much higher than originally anticipated. “Without urgent action, the scheme would have been overwhelmed within a very short period of time,” says DECC. “Every 5 MW large-scale solar scheme would incur a cost of approximately £1.3m per year, which means that 20 such schemes would incur an annual cost of around £26m, money that could support PV installations for over 25,000 households.”

Solar industry experts have labeled the cuts as “a farce”, and have warned the slashes will result in less solar projects and therefore a less efficient use of the technology.

Howard Johns, chairman of the Solar Trade Association said the coalition had got it “seriously wrong”, and accused the Treasury of crippling DECCS ability to respond to major developments. The prime minister urgently needs to intervene to prevent this calamity.”

“Crushing solar makes zero economic sense for UK plc because it will lose us major manufacturing opportunities, jobs and global competitiveness. It also risks locking us in to more expensive energy options in future,” he said.

“It is inexplicable that the Treasury can be allowed to damage energy and industrial policy by taking decisions without taking into account the bigger picture.”

http://www.decc.gov.uk/en/content/cms/news/pn11_046/pn11_046.aspx

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=16&refer=Sustainability/Environment/fits