REA response to Solar Power Subsidy cut rumours.

Since the  publication of the article ‘Solar power Subsidy Cut Under Review’ in the Financial Times, the REA has been inundated with calls from PV investors concerned that deals they are putting together could collapse if Government cuts the Feed-in tariff rates for PV.

Millions of pounds of investment and the creation of thousands of much needed new jobs are now at risk pending an announcement. 

The REA’s Technical Director Stuart Pocock said ‘The scheme only came into effect on the 1st April and was created, first and foremost, to give a stable long term financial environment to create an industry.  Cutting rates now would seriously affect investor confidence, not only in PV, but also in other Government backed renewable schemes such as the forthcoming Renewable Heat Incentive’. He goes on to urge Government to make an immediate announcement confirming that the tariff rates published at the schemes launch will not be reduced in advance of the scheduled first review due to take place in 2013.

The REA’s PV specialist Ray Noble added, ‘You cannot compare the situation in the UK with that of Germany where rates have recently been cut. The German market has grown to a size where these rate cuts can be absorbed. In comparison the UK market is tiny and needs a stable well funded support scheme to enable it to grow’.

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