Solar panel installations have fallen by almost 90% in the weeks since the government cut the subsidy available, according to Department of Energy and Climate Change figures.

The change in financial support for solar power has been highly controversial and has seen the government lose a high-profile legal case in the high court. The new data lends support to the charge of some in the solar industry that the government cut the subsidy too far and too fast, endangering thousands of jobs. Ministers have defended their actions, saying the scheme they inherited from the previous government was poorly set up and was too costly for the energy customers who ultimately foot the bill.

Since 1 April, the amount paid to those installing solar panels fell from 43p/kWh of energy generated, to 21p/kWh. In the three weeks since then, an average of 2.4MW of solar photovoltaic capacity has been added each week – 87% down from the weekly average for the previous year of 18MW.

Greg Barker, the Conservative minister responsible for the solar subsidy scheme, said the changes aimed to end “solar booms” and busts: “The whole point of my reforms is to bring in a much greater degree of certainty and predictability.” He has set an ambition to have 22GW of solar capacity installed in the UK by 2020.

Caroline Flint, the shadow energy and climate change secretary, claimed on Tuesday that this target would take 169 years to reach at the current rate. “For months Labour has been warning that the government’s cuts to solar power would destroy thousands of jobs, cut off a green hi-tech British industry and stop families controlling soaring energy bills. These shocking figures prove that because of the government’s cuts, it will take a staggering 169 years for us to reach our targets for solar power.”

Paul Barwell, chief executive of the Solar Trade Association, said: “We’ve seen drops in installation with every policy adjustment, but we expect this one will take a bit more time to pick up.” He said the reason take-up would take longer this time is the new requirement that homes must be reasonably energy-efficient before being entitled to solar panel subsidies – a requirement met by about half of homes.

“Many householders are aware that government has slashed subsidies,” Barwell added. “The challenge for us is to make householders aware that’s partly because industry has slashed costs, and partly because solar is so popular. There is no doubt that financially solar remains a great prospect for UK homeowners so there is no good reason why the UK market should stagnate.”

All sides agree that subsidies had to be reduced because the costs of solar panels continue to drop rapidly: the argument was about the speed and scale of the cut.

In his first significant remarks on green policy last week, prime minister David Cameron appeared to address the uncertainty caused in the renewables industry by the changes to the feed-in tariff. “When we have made a commitment to a project, we will always honour it in full,” he told energy ministers from around the world on 26 April

Originally published on The Guardian. 

Here at Solarfeedintariff.co.uk, we would like to see the government support the solar industry more comprehensively and understand that investment needs concrete figures and not hollow promises to work from. The insistence of energy efficiency within the home prior to the tariff being granted limits the number of rooftops where solar panels can be fitted and damaged growth in the industry.

We hope the 22GW capacity mentioned by Mr Barker is strived for and we would like to see more action to support the decentralization of  energy within the UK

Japan may announce preferential price rates this month for electricity generated from renewable energy in a program that will start in July to encourage investment in non-fossil fuel power plants.

A five-person panel have been discussing the preferential rates, known as feed-in tariffs, since March 6 and will hold their sixth meeting on April 25.

Japan’s Ministry of Economy, Trade and Industry hopes to receive the recommended rates by April 27, which will then need government approval, Keisuke Murakami, who heads clean energy programs at the ministry, said today.

The feed-in tariff guarantees above-market rates for solar, wind, geothermal, biomass and hydroelectric power. The Japan Photovoltaic Energy Association proposed 42 yen (52 cents) a kilowatt-hour for 20 years for solar power. For wind, the Japan Wind Power Association suggested as much as 25 yen a kilowatt- hour for the same period.

Murakami said no decision had been made about rates for solar power in response to a Nikkei newspaper report today that said the rate will be 42 yen a kilowatt-hour for about 20 years. The newspaper didn’t state the source of its information.

By : Bloomberg

The government has lost its high court appeal over its plan to cut subsidies for solar panels on homes.

The appeal was against a High Court ruling blocking government plans to make large reductions to payments made to households with solar panels.

It would have hit customers who installed panels after 12 December.

Under the feed-in tariffs programme, people in Britain with solar panels are paid for the electricity they generate. The government tried to reduce them prior to the results of the consultation being released. The High Court agreed with opponents that this was legally flawed.

The new tariff of 21p per kilowatt-hour, down from the current 43p, had been expected to come into effect from 1 April, but in October the government said it would be paid to anyone who installed their solar panels after 12 December.

Upholding that ruling, the Supreme Court said the government’s appeal “does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time”.

The government said the court’s decision drew a line under the case.

“We will now focus all our efforts on ensuring the future stability and cost effectiveness of solar and other microgeneration technologies for the many, not the few,” said Energy and Climate Change Secretary.

Here at solarfeedintariff.co.uk we applaud the High Courts judgment and hope it encourages fairer and better planned legislation from the government In the future when amending renewable energy policy.

The Government has today announced plans to ensure the future of the Feed-in Tariffs scheme to make it more predictable. Transparency, longevity and certainty are at the heart of the new improved scheme.

The reforms will provide greater confidence to consumers and industry investing in exciting renewable technologies such as solar power, anaerobic digestion, micro-CHP, wind and hydro power.

The Feed-in Tariffs (FITs) scheme provides a subsidy, paid for by all consumers through their energy bills, enabling small scale renewable and low carbon technologies to  compete against  higher carbon forms of electricity generation.

The surge of solar PV installations in the latter part of last year, due to a 45% reduction in estimated installation costs since 2009, has placed a huge strain on the FITs budget.

Climate Change Minister Greg Barker said: “Today we are announcing plans to improve the Feed-in Tariffs scheme. Instead of a scheme for the few the new improved scheme will deliver for the many. Our new plans will see almost two and a half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry.  We are proposing a more predictable and transparent scheme as the costs of technologies fall, ensuring a long term, predictable rate of return that will closely track changes in prices and deployment.

“I want to see a bright and vibrant future for small scale renewables in the UK and allow each of the technologies to reach their potential where they can get to a point where they can stand on their own two feet without the need for subsidy sooner rather than later.”

A BETTER FIT SCHEME FOR CONSUMERS AND COMMUNITIES

• A tariff of 21p/kWh will take effect from 1st April this year for domestic-size solar panels with an eligibility date on or after 3rd March 2012. Other tariff reductions apply for larger installations.
• The Department has listened carefully to feedback on the energy efficiency proposals that we put forward in the consultation of 31st October. Properties installing solar panels on or after 1st April this year will be required to produce an Energy Performance Certificate rating of ‘D’ or above  to qualify for a full FIT. The previous proposals for a ‘C’ rating or a commitment for all Green Deal measures to be installed was seen as impractical at this stage. We estimate that about half of all properties are already eligible for a ‘D’ rating.
• From 1st April 2012, new ‘multi-installation’ tariff rates set at 80% of the standard tariffs will be introduced for solar PV installations where a single individual or organisation is already receiving FITs for other solar PV installations. This reflects the lower costs of such installations, as they benefit from the economies of scale. Based on the feedback  received, the threshold is set at more than 25 installations. Individuals or organisations with 25 or fewer  installations will still be eligible for the individual rate. DECC is now consulting on a proposal that social housing, community projects and distributed energy schemes be exempt from these multi-installation tariff rates.
• The tariff for micro-CHP installations will be increased to recognise the benefits this technology could bring and to encourage its development.

A BETTER FIT SCHEME FOR INDUSTRY

• In line with the evidence of falling costs for solar PV, DECC is proposing to peg the subsidy levels to cost reductions and industry growth to provide more certainty for future investments.  This will ensure that subsidy levels keep in step with the market. It builds on the best of the existing German system and will remove the need for emergency reviews.
• Using budget flexibility to cover the overspend resulting from high PV uptake this year, while still allowing £460 million for new installations over the Spending Review period. This won’t have any impact on consumer bills beyond the agreed overall cap on renewable subsidies as it will primarily be funded from an under spend on the budget allocated for large-scale renewables.