Are the Government cutting support to the solar panel industry?
By 2020 Britain aims to achieve the target of 15% of its energy consumption being generated by renewable sources and reducing our dependence on fossil fuels – a target that the government is aware that it is not on course to meet. This target was set by the 2008 Climate Act, which set out a framework to provide an economical pathway for Britain to reduce emissions through legally binding targets.
Since 2010 the government has subsidised solar panel use with their feed-in tariff which pays for every kWh generated. This incentive - which is guaranteed for 20 years - has coincided with a huge increase in the use of solar panels, with one million homes in the UK harnessing the sun’s rays, and three quarters of those homes converting solar power into electricity to use in the home. This accounts for about 1.5% of the total UK electricity use. But the government is likely to end this scheme.
It currently costs each energy bill payer £9 per year to support sustainable energy in the UK, but the government has declared that it is spending too much of this money supporting the feed-in tariff scheme. So from January 2016 the government is aiming to lower the feed-in tariff by 87%. As well as angering many environmentalists, this cut threatens to impact on many businesses in the UK that have supported the expansion of solar panel use over the last decade. The UK solar industry’s main trade body - the Solar Trade association - has forecast a potential loss of 27000 jobs in this industry. They have proposed a rescue package of adding £1 to the energy bill payer which the Solar Trade association forecast could save up to 20000 of the jobs at risk. This offers a wise compromise and the solar industry - and advocates of renewable energy – will be hoping that this sensible approach is adopted when the government consultation for the review of the feed-in tariff closes on October 23rd.