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Thursday, 22 December 2011

Solar PV. What Happens Now?

Posted on 14:30 by Unknown
Hope someone can clarify what's now happening with Solar PV feed-in tariffs. A few weeks ago the Coalition Gov't announced that the tariff was to be cut from 43p per unit to 21p. Just as important important was the decision to only approve an installation on a property which had already been made energy efficient. The most controversial element was that the changes would apply to installations registered after Dec 12th - even though the consultation period on the changes would not end until Dec 23rd. Unsurprisingly there has been uproar - and a legal challenge.

I was much concerned when I first learned about what was proposed. The solar industry has been such a success. So I listened carefully to the Statement in the House of Commons by the DECC Minister. Admit I was left scratching my head about why the decision had not been taken months before, so avoiding the suddenness of the cut-off, and about the logic behind a consultation finishing two weeks after the matter being consulted on was implemented. But I felt able to support the Government's position (and did so in the chamber and in interviews) - simply because I could see no alternative. The solar PV element of the feed-in tariff scheme had been so incredibly successful, that almost the entire 4 year budget for all renewables had already been used up. The 43p rate was totally unsustainable. But it was not the easiest case to defend - especially in Welsh!

Anyway, the High Court has declared the changes to be "legally flawed" - and a DECC Minister has said it will be appealed. Has anyone got any idea what is going to happen now. Seems to me that if the changed tariff cannot be introduced as planned, there will very soon be no budget left, and all feed-in tariffs for new applications will come to an end fairly quickly. Really frustrating that I've been too busy to find out today what the position is. It could be that the judgement is still being absorbed. Would welcome comments from anyone who knows what's happening. I will try to update the position as I dig out information.
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