The Feed In Tariff shambles continues!

Unless you’ve been living under a bush for the last couple of months, you’d be fully aware of the” battle” between (some parts of) the solar industry, and DECC/The Government/Greg Barker around the FIT? Or so you might think??

In reality, the battle, and subsequent court case, has been mis- interpreted? I would also suggest that consumers and MP’s (certainly mine hasn’t a clue!) have got the wrong end of the stick ?

As you may recall, the Government announced a review of the FIT (which was always planned), but decided to bring forward a qualifying installation date in which to receive the (as was, and could still be?) tariff payment of 43.3p. After this point (12th December) the tariff payment (for this size system) would be 21p!

Initial reaction from the solar industry was naturally one of horror and despair! However, it was well publicised and led to a mini boom in solar installations, which most installers were able to capitalise on. True, many projects (community schemes, commercial sized projects etc.) were stopped dead in their tracks. But, only momentarily….

During that period (and since) suppliers and installers have reviewed their strategies and pricing, and (if 21p remains) can still offer consumers a very healthy ROI on an installation (in the main 8%-10%, and possibly more in some instances?!) .

But… this shambolic fight continues, and the real reason behind the court case has seem to have been forgotten?

If you look at Greg Barker and DECC’s propoganda, they still keep banging on about the fact that 43.3p is unsustainable. We know that, we have accepted that, and have made necessary changes to give the consumer a very healthy ROI..

What, the real point of the court case is about, is the fact that the Government cannot make changes to the FIT without proper consultation and a fair and reasonable time-scale..

Unfortunately, the two points have been muddled, and have now led many consumers to think one of two (or indeed both) things:

1). Solar PV is not financially viable?

2). The Government can not be trusted?

Unfortunately, the industry is in a worse situation than it was back in November? Most installers (not involved in the court case) were happy to accept 21p going forward, and probably wish that the court case never happened (or indeed was won, initially)? 21p worked…

Now, no one can tell what the Government’s re action will be? Win the appeal or not, they could just as easily reduce the 21p even further from April? Remember, we have not seen the outcome of the “consultation” yet?

If the “representatives” of the solar industry win the “battle”, will they lose the “war” and ruin the industry?

What I can tell you, is that most of those in the industry that I speak to, did not want this court case to go ahead, and certainly want a swift end,and clarity of what is going to happen post April….

I would be interested on your views…

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