News Article
SOLAR Catches A Cold In UK
Department of Energy and Climate Change (DECC) statistics show that in the month of April the number of solar PV installations for systems under four kilowatt (kW) in size numbered just under 1300. The average number of installations per month over the previous 12 months was around 25,000, suggesting that the Government's cut to the Feed-in Tariff (FiT) subsidy has a severe effect on household and investor confidence.
From April 1, the FiT rate was cut from 43.3 pence to 21 pence for 4 kW systems. The cut has been controversial ever since the Government tried to slash rates by half in December last year, leading to a court battle which it lost.
The Government has always maintained that the cuts are necessary to maintain the long-term health of the industry and to protect the overall FiT budget.
DECC said that a fall in installations last month was to be expected "in the immediate aftermath of changes" to the FiT.
"The industry needs time to adjust. We are now moving towards an era of much more stability and certainty for solar and with costs falling we maintain our ambition to see FiTs as a scheme for the many, not the few," a DECC spokesperson said.
The Government has set a target of installing 22 gigawatts of solar capacity by 2020.
