The Department for Energy and Climate Change have announced a consultation on the level of Feed in Tariff for Solar PV installations. The contents of the consultation document have thrown the Solar PV industry into a frenzy as the tariff is cut from 43.5p to 21p, and the deadline for getting installs completed at the current rate has been brought forward to the middle of December from March.
Paul Joyner, Director of Sustainable Building Solutions at Travis Perkins, was more sanguine. "The Feed in Tariff as it previously stood effectively provided a long term financial return to investors that had little to do with the generation of electricity. The object was not to bring Finance Directors to the renewable market on the back of long term fiscal return, the intention was, and should continue to be, to provide enough incentive to encourage adoption of technologies that meet our carbon reduction agenda. Without doubt the high incentive to date has encouraged a rapid take up and that has been good for the industry, I hope that the benefits will still be recognised and the industry can stabilise and move on effectively. I also believe that greater consideration will now be paid to the performance of the product and the quality of the install rather than the financial metrics."
Paul continued, " The greater concern for us as an industry is the lack of consistency by DECC and the Treasury, and their willingness to change the rules mid game. This must not happen again, or those who have been surprised by this latest move will lose confidence and long term uptake will be impacted"
It is likely that the consultation paper will be implemented with little change.