The cuts, due to be implemented in January 2016, would see FiT payments for new solar panels drop to less than 2p per unit of electricity. This means homeowners would receive up to, on average, £190 less in subsidy payments annually, compared to current FiT rates.
NICEIC and ELECSA believe this reduction could have a significant impact on demand for solar PV technology and further consequences for those people working within the industry.
‘The Feed in Tariff played a major part in making solar PV an attractive option for many householders,’ commented Dani Putney, renewables specialist at NICEIC and ELECSA.
‘To suddenly pull the plug on funding in such a drastic manner could have a dramatic, negative effect on the market and potentially put thousands of jobs at risk.
‘The Department of Energy and Climate Change has admitted they are unable to quantify how many business will be affected.’
The Department of Energy and Climate Change said the cuts were necessary to halt a £1.5bn overspend on renewables. It has also suggested that subsidy payments could be halted entirely in 2016 if costs could not be controlled.
Anyone wishing to respond to the consultation can do so at the link – https://econsultation.decc.gov.uk/office-for-renewable-energy-deployment-ored/fit-review-2015