Are the government going to change their mind on solar energy?

December 21, 2011 Posted in - Business Utilities , Utilities

Are the government going to change their mind on solar energy?

The recent decision made by the government to effectively halve the subsidies as from the 12th December 2011 which a consumer or business receives from having solar panels installed is being challenged today (21st December 2011).

Friends of the Earth are putting pressure on the government to seek a suitable alterative ruling as the environmental charity believes that the proposals which the government recently introduced is in their view unlawful.

The new lesser 21p per kilowatt hour tariff was originally going to be introduced to take effect from April 2012, but quite suddenly the government decided in their infinite wisdom that they would bring forward the introduction of the new tariff to 12th December 2011.

‘Solar Century’ and ‘Home Sun’ two Solar Energy providers based in the United Kingdom also challenged the decision and have said that it has now put the Solar Energy Industry at risk. Already projects have been scrapped and some solar energy companies have been forced to make staff redundant and worry for their long term future as Solar Energy Installers.

Andy Atkins of the Friends of the Earth said “we are delighted that the High Court has given the go ahead to our legal challenge.”

“Ministers must change direction and put the solar industry at the forefront of building a clean and safe future.”

In Scotland about 3,000 jobs had been created in the Green Energy market according to Peter Randall of the solar trade Association but the change to feeder tariffs which came into effect on the 21st December 2011 has put a third of these jobs at risk.

Chris Huhne the Energy Secretary, made the decision as he felt that the 43p tariff which Solar Energy customers receive by selling energy back to the National Grid is to generous and can’t be sustained long term.

Local councils have already criticised the decision with Stoke on Trent City Council already reducing the amount of council building(s) which they were intending to install solar panels on from 4,000 buildings to 550 buildings.

The scheme with Eon was intended to save Stoke on Trent City Council home rent payers about £100 on their electricity bills but the decision on reduction has now been scaled back to Council House buildings only.