A Court Case Is Currently Being Heard on the Legality of the Abrupt Feed-in Tariff Changes

REA Chief Executive Gaynor Hartnell comments…

“Whilst all companies installing PV will have been appalled at having a tariff reduction imposed with six weeks’ notice, the majority of our members felt the tariffs should come down.  The REA and the Solar Trade Association – whom we host – had both called for a 25% reduction in March this year, in our respective responses to the “Fast Track Review” consultation.  It would have been far better, from the perspective of investor confidence, had Government been seen to react to industry calling for a tariff cut.

“Instead this “quick fire” reduction has caused huge disruption and a mad dash to install systems before the deadline, which is far from healthy. The industry can quickly mobilise itself and the final days before the cut-off saw around 9,000 systems a day being registered.

“The considered view is that the new tariff rates are acceptable.  The greater worry is the interaction between energy efficiency requirements and PV; the measures proposed in the consultation will have the effect of constraining the market very significantly.

“The focus of the implementation of feed in tariffs has all been on PV, but we must not lose sight of the fact that wind, anaerobic digestion and small-scale hydro also benefit and developers of these schemes are anxious about the implications for their planned projects.

“Overall, the sooner we move towards stability the better.  We very much want the Government to focus on the benefits PV can bring, and together we should be welcoming the dramatic cost reductions.  Only if Government buys in to the bigger picture, and works with us to get on to a “glide path” to grid parity, can we look forward to the UK getting the best out of this game-changing technology.”

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