Feed In Tariff – Will the recent court case backfire on the solar industry?
The current “battle” between the Government and some within the Solar Industry is well publicised, but (win or lose) could it backfire on the future of solar??
Let’s make no mistake here – The Government were wrong to impose such a short time-scale before they reduced the FIT, and it would also appear that this is illegal too?
However, the said “battle”, court case and appeal, is not helping anyone!? Most installers have now made plans to deal with the proposed 21p rate, and it is workable for both consumers and installers.
Many installers are now “quoting” 21p to potential clients, but it could be 43.3p if the Government fail in their appeal? Some are suggesting that they cannot do this, as the 21p rate is only a “proposal”?
My understanding (and correct me if I’m wrong), is that whatever the rate is, it will not be lower than 21p (certainly not before 1st April 2012)?:
1). Greg Barker has stated this himself (if he is to be believed?!).
2). If the Government wish to reduce the tariff below 21p, then they have to carryout another consultation? Which of course they would have to carry out “properly”?!.
So, will it backfired??
Most installers/suppliers I speak to, whilst weren’t happy with the Government’s decision, have adapted, and simply want to get on with selling/installing solar panels again. Now they can’t?
My view is that the Government know that they will not win the appeal, and will have to open back up the 43.3p until April? So, are just playing for time?
This would be great in the short term (another solar “boom”?). But, what will it do for the industry post April?? What will the FIT look like then??
Don’t get me wrong? I would have loved to have seen 43.3p until April, then a degression rate more in line with Germany? We could argue about the finances, but unfortunately “we” have entrusted the Government to make those decisions on our behalf?
I don’t believe that what has happened is right, and I believe that the likes of Barker and Huhne should pay the consequences.
However, the court case/appeal is not helping anyone? And are installers just wishing that those “fighting the for the cause” would just give it up??
The best result for the future of the solar industry would be for the Government to win its appeal on January 13th.
“Our biggest concern is that we see a return to the 43.3p/kWh subsidy level until April which would cause an astonishing boom followed quickly by the most catastrophic bust.
“The Government has made it clear that the Feed-in-Tariff budget is already spent, so a further boom now would mean that any new rate would be a lot less than the proposed 21p/kWh.
“While we would have obviously preferred the new rate to be higher than 21p, anything less would not just damage the industry – it would kill it forever.
“All of this prolonged agony for the industry could have been avoided if the Government had got its consultation process right in the first place and not looked to introduce the new rates while the consultation was supposedly still ongoing.
“While businesses like Eco Environments would undoubtedly do well in the three month window between now and April if we reverted to the 43p rate, that is not what we are about. We are about building a long-term, sustainable business which creates jobs and helps consumers and businesses in the UK to understand and build renewable technologies into their everyday lives.
“The only winners from a return to 43p would be the cowboy solar operators who would quite happily cash in on a short-term opportunity and then close their businesses down and look for the next boom industry to prey on.”