News Article
Barker Jumps To Future Solar Feed-in Tariff Plans
The government has set out how it will respond to the imminent court decision following calls from the industry for the government to clarify the level of incentive available for current installations.
"We continue to stand by our original proposal," he said, referring to the plan to halve solar incentives for installations completed after December 12 last year. "However, I know that the uncertainty while we await the court's decision is difficult for the industry."
He added that to tackle this uncertainty and limit risks to the scheme's budget in the event that the government's appeal proves unsuccessful and the court orders a return to the previous feed-in tariff level of 43p/kWh, the government will lay draft licence modifications before parliament that would allow tariffs to be cut from April 1 for all installations completed on or after March 3rd.
The licence modifications confirm that from March 3 installations with less than 4kW of capacity will see incentives halved to 21p/kWh, while large installations with between 50kW and 250kW of capacity will see feed-in tariff payments cut to 12.9p/kWh. Mid-sized installations with 4-10kW will see tariffs cut from 37.8p to 16.8p/kWh, while installations with 10-50kW capacity will face a cut in the level of support from 32.9p to 15.2p/kWh.
The statement also reiterates the government's intention to stick with its original proposals if it wins its appeal, imposing cuts to incentives for all installations completed after December 12 last year.
"If the court finds in favour of the government's appeal, we intend to stand by all our consultation proposals, including an earlier (December) reference date, subject to the Parliamentary procedure and consideration of consultation responses," Barker said.
Win or lose their appeal, the level of government support for solar is certain from March 3rd.
Friends of the Earth have welcomed this step forward on their website because it allows solar companies to plan for the future - something they could not do until now.
