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

Next week’s Budget is likely to deal a further blow to Government promises to create jobs and tackle soaring fuel bills by building a clean economy and safeguarding our environment, Friends of the Earth warned today (Friday 16 March 2012).

The environment charity is urging the Prime Minister, who promised to lead the “greenest Government ever”, to ensure George Osborne keeps his pre-election pledge for “the Conservative Treasury to be in the lead of developing the low carbon economy and financing a green recovery”.

There are growing concerns that next week’s Budget will lead to:

• Little action on developing a clean, low-carbon economy
o The UK’s dependency on expensive fossil fuel imports has led to rocketing fuel bills. Developing the UK’s vast wind, wave and solar potential would create thousands of jobs and boost our energy security. But George Osborne has shown little enthusiasm for getting the UK off the fossil fuel hook – and recently inaccurately claimed that moves to boost a clean economy are responsible for driving up energy bills.

• A reduction in safeguards for wildlife and the countryside
o The results of Government reviews of planning and environmental regulations are expected to be announced alongside the Budget. This could pave the way for more building in the countryside and less protection for our wildlife. George Osborne recently told MPs he wanted to make sure that “gold plating of EU rules on things like habitats” were not putting “ridiculous costs” on firms – despite little, if any, evidence to back up this claim.

Friends of the Earth’s Policy and Campaigns Director Craig Bennett said:

“In opposition the Chancellor pledged to lead the fight to create new jobs and tackle soaring fuel bills – and keeping his promise to develop a clean future is the best way to fix our broken economy.

“We must free ourselves from the shackles of our reliance on costly fossil fuels by switching to clean British energy, which is the only way to give us affordable power in the long term.

“David Cameron’s silence on this issue is deafening – he must remind his Chancellor that the best way to build a strong economy is to build a clean economy.”

Responding to George Osborne’s stated intention to “make sure that gold plating of EU rules on things like Habitats aren’t placing ridiculous costs on British businesses”, Craig Bennett added:

“There are many reasons why the economy is struggling, but measures to protect our precious wildlife sites are not one of them.”

The Court of Appeal today (Wednesday 25 January 2012) unanimously rejected Government attempts to overturn last month’s High Court ruling that its plans to rush through sudden cuts to solar tariff payments are illegal.

The Government is now seeking permission to appeal to the Supreme Court. Friends of the Earth says the move will create yet more uncertainty for solar firms and after two courts have ruled their move illegal is urging Ministers to concentrate on safeguarding the industry rather than wasting more time and money on further appeals.

The High Court ruled shortly before Christmas that Government plans to cut payments for any solar scheme completed after 12 December – 11 days before the official consultation closed – were unlawful. The judgement followed legal challenges brought by Friends of the Earth and two solar firms, Solarcentury and HomeSun, last month.

Today’s judgement will prevent Ministers rushing through cuts to feed-in tariff payments in future, restoring some confidence to the UK’s clean energy industry. But Friends of the Earth warns that unless Ministers change other parts of their solar subsidy proposals, up to 29,000 jobs could be lost.

Friends of the Earth is urging Ministers to find more money – paid for from tax payments the industry generates – to safeguard the long-term stability of the solar industry. The environmental campaigning charity is also calling for crucial amendments to proposed Government solar payment changes, including re-examining over-strict energy efficiency rules that will prevent 90 per cent of houses from claiming solar subsidies.

Today’s ruling means that, subject to any further appeal to the Supreme Court, solar tariff payments will remain at 43.3p (p/kWh) until 3 March 2012 when – following Government moves last week – they will fall to 21 pence.

Friends of the Earth’s Executive Director Andy Atkins said:

“This landmark judgement confirms that devastating Government plans to rush through cuts to solar payments are illegal – and will prevent Ministers from causing industry chaos with similar cuts in future.

“The Government must now take steps to safeguard the UK’s solar industry and the 29,000 jobs still facing the chop.

“Ministers must abandon plans to tighten the screw on which homes qualify for solar payments – and use the massive tax revenues generated by solar to protect the industry.

“Helping more people to plug into clean British energy will help protect cash-strapped households from soaring fuel bills.”

Friends of the Earth is urging Ministers to focus on putting the solar industry back on a stable footing after Energy Minister Greg Barker confirmed via Twitter today (Tuesday 3 January 2012) that the Government has decided to try to appeal a ruling that its solar cuts are illegal – at a potentially huge cost to taxpayers.

The green campaigning charity said the Government must introduce a clear plan to reduce solar power payments in line with falling installation costs, rather than prolonging industry uncertainty and jeopardising jobs by pursuing an expensive legal appeal.

Following a legal challenge by Friends of the Earth and two solar firms Solarcentury and HomeSun just before Christmas, the High Court ruled that the Government’s plans to rush through sudden cuts to solar payments – before its own consultation had ended – were illegal.

The court refused permission for an appeal on the basis that the Government has no realistic prospect of winning. The deadline for lodging an appeal is 4pm tomorrow, 4 January 2012.

Friends of the Earth is also calling on Ministers to reduce tariff rates in a planned way from February 2012 to protect jobs, and to increase the overall budget for the feed-in tariff to allow more people – including poorer households and community groups – to benefit from solar power.  The group says this is possible without any additional cost to bill payers because of the increased tax revenue the scheme is generating.

Friends of the Earth’s Head of Campaigns Andrew Pendleton said:

“The Government’s illegal cuts to solar tariff rates have near-crippled an industry and threatened thousands of jobs.

“Trying to appeal the High Court’s ruling is an expensive waste of taxpayers’ money – the court says the Government has no realistic chance of winning, and it will prolong uncertainty among solar companies just when they need reassurance.

“Ministers should accept the High Court’s decision and end business uncertainty and protect jobs with a clear plan to reduce payments from February, in line with falling installation costs.

“The Government must expand the scheme overall – with all the tax revenue the scheme generates, this can be done at no extra cost to bill payers.”