Book Description

This report finds that the Government is undermining confidence in energy policy and hurting the UK solar industry by rushing through panicked changes to Feed-in Tariffs (FiTs) without adequate notice to consumers and installers alike. The tariff rates for domestic-sized solar panels are to be reduced from 43.3p to 21p per kilowatt hour of electricity produced from April 2012. However, installations had to be completed and registered on the scheme by 12 December 2011 to receive the higher 43.3p rate for the full 25 years contract. The suddenness of these changes means that some households have been forced to cancel planned solar panels and face losing their deposits. Many local authority and community renewable energy schemes have been cancelled. Plans to require homes to meet a 'C' rated energy efficiency standard before they can receive solar FiTs will limit access to wealthier households, and 86 per cent of homes would need to be better insulated before they could qualify for the scheme under the Government's proposals. The report calls on the Government to: develop a system to review and adjust FiT rates in an orderly and timely way; consider alternative energy efficiency requirements to avoid devastating the industry; design a 'community tariff' that takes in to account the wider impacts on community groups and social housing projects; investigate how the FiTs scheme could be used to encourage solar panel manufacturing in the UK; require electricity suppliers to provide annual returns on how much FiTs have added to annual energy bills.