28 Oct 2011
Members of the solar sector are preparing to stage a protest calling on the prime minister to intervene to block anticipated plans to halve feed-in tariff (FIT) incentives for solar installations, which they fear will "kill off" the fast-expanding industry.
The new Cut Don't Kill campaign, founded by a coalition of 20 major companies from across the solar industry, is planning to hold a march next month calling on David Cameron to halt controversial plans to slash subsidies for small-scale PV installations.
A document from the Energy Saving Trust that was inadvertantly published on its website this morning suggests new rates will effectively come into force from 8 December, reducing the level of subsidy for projects smaller than 4KWh from the current 43p/KWh to just 20p/Kwh.
The Department of Energy and Climate Change (DECC) said the document is inaccurate, but has refused to clarify the scale of the proposed cuts ahead of a parliamentary statement on Monday.
Industry representatives are now convinced deep cuts of around 50 per cent will be confirmed, and a spokesman for Cut Don't Kill said two Westminster events were now planned to protest against a move that solar firms believe will result in job losses and bankruptcies.
The group revealed it is planning a mass lobby of parliament, accompanied by a protest or stunt, as well as the delivery of a petition to Downing Street demanding more modest cuts to incentives.
Speaking to BusinessGreen, Howard Johns, chairman of the Solar Trade Association which is backing the campaign, predicted a turnout of at least 5,000 people at the protest, representing one fifth of the 25,000 employed in the UK's solar industry today.
"I think it's down to how loud we shout at this point," said Johns. "David Cameron needs to address this."
Solar developers have warned that if the 20p/KWh rate is implemented it will undermine interest in solar PV from investors, resulting in an end to free solar financing schemes and social housing projects.
Dave Sowden of the Micropower Council predicted that only wealthy households would be able to afford installations, which under the new proposals would only deliver rates of return of around four per cent, well below the five to eight per cent returns the scheme was originally intended to deliver.
Writing to climate minister Greg Barker on Twitter, founder of Solarcentury Jeremy Leggett said that the apparent plan to impose changes to feed-in tariffs from as early as December 8 would spark a crisis for the industry.
"Halving is bad enough, December is a killer. Thousands will be out of work... not without much, much noise… sorry to sound like a cross between Corporal Jones and Robert de Niro, but this is an existential threat for most in our industry."
The government has consistently maintained that deep cuts to the incentives are required to stop the feed-in tariff scheme exceeding its spending cap and applying further upward pressure on energy bills.
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WHAT DO YOU THINK? Add your comment
Still doing the 'protest'?
You guys still planning to march on Downing Street to complain about your subsidies being cut? If so which day please? I need to apply to the Council for a licence for a rotten fruit stall so that the general public can exercise their right to show what they think of subsidy parasites? Face it , the only people who are at all concerned about this move are those who are the current recipients of the obscene bribes. The rest of us will be delighted to see you all disappear and go and do something actually useful for a living.
Posted by Latimer Alder, 20 Nov 2011
FIT Changes
The worst thing is the sheer number of changes made to the FIT for solar panels. This a href="http://www.talksolarpanels.co.uk/fit-solar-panels-changes.php" solar panels timeline /a shows how the government's constant U-turns and fast-tracked policies have lead investors to having no confidence.
Posted by James Hawkins, 16 Nov 2011
job loss
Myhusband was made redundant last year from the construction industry - he invested all his redundancy money into his solar pv business and yet again the government have pulled the rug from under his feet.
Posted by Mia Caffarey, 02 Nov 2011
Guy Fawkes Week
Oi Cameron - someone's chopped down yer tree and put it on a bonfire! With you, and Barker and Huhne on top! OK FIT payments were generous at the time of the contract - but they are limited to RPI increases - Energy Prices aren't and I was willing to go with it on the basis that by year ten I would be on a loser against real energy prices but ahead of investment rates today - but not now! Tory plonkers - all over again!
Posted by No 6, 01 Nov 2011
Job losses
As a solar installer we know that a 21p FIT level could cripple the solar market. Worse still; changing the rate by the 8th December gives us no time to plan the change, inform our customers and ensure the future of our businesses. Many jobs will be lost! We know the FIT needs to be cut; but so much and so fast does not make sense!
Posted by Paul Hutchens, Eco2Solar, 31 Oct 2011
Greg Barker's CV
Look at Wikipedia - Head of Communications at the Anglo Siberian Oil Company from 1998–2000 and also worked in Russia for the Sibneft Oil Group, owned by Roman Abramovich.
Posted by Jim Erith, 30 Oct 2011
Business Green
Dear Sir, I fully agree with all your comments. As the government are completely backing down on their commitment to reduce Co2 emissions David Cameron is just saying on TV with Andrew Marr as I write that the Government is concerned about jobs. Does he not realise the new jobs that have been created by PV installations? For me this is a selfish attitude as I was depending on PV to enhance my meager teachers pension and help with my very high energy costs. Have not signed up yet as I have been reaching the whole PV and getting quotes, more worries and just when I thought I had got it sorted. "Slap in face!" Regards, Wendy Goodwin
Posted by Wendy Goodwin Bsc.,CBiOl, 30 Oct 2011
So it its all about money then?
Mr Cameron - Please for all of our sake get your house in order. an incentive is an incentive, did the job - too well really. Were the fits set as these rates to dupe us all into thinking a 10% return on investment was sustainable? on purpose?? so, they forced our hand, again. What was wrong with a little vision, are there not many "experts? in the "field" that would for-see this, now you have a protest and vote of no confidence, and the unfortunate affair of our children suffering for the 2020 target not being reached. Environment vs Economics is something I just can't get my head around, does the world need saving? is climate change a real and tangible factor? Should the energy companies stop pushing you around? oops, slipped out - Seriously mate, stop talking about it, start thinking out-side of the box and come up with a sensible, honest solution that we can all work towards. I'm sure we all hope you can "pull it out of the bag" TM
Posted by Thomas more, 29 Oct 2011
LH - Caplor Energy
What will be announced on Monday will be a true reflection of whether this 'greenest ever Government' is true to its word or not. If the rumours are correct we may well see the collapse of the PV industry. I agree with an earlier posting - surely the UK public would much rather see their taxes used to support this industry rather than the banking fat cats. Renewable energy is an investment in the future for us all. Yes, the FIT is too high at the moment so a cut is inevitable. But to halve it from December is madness and reckless. Jobs at stake. Future at stake. We must be prepared to fight this at all costs.
Posted by Laurence Hughston, 29 Oct 2011
Renewables are the future and should be supported
How much of our energy comes from foreign powers? I am guessing it’s in excess of 90%. How many of those countries would be considered hostile towards the UK?? gas from Russia, oil from the Middle East. The EU is now considering a bail out from Communist China, both China and India have gone past emerging countries and are now or becoming super powers. Their demand for energy with 2 billion people between them will make are demand seem like a small group of scouts huddled around the embers of a once nice fire. We don’t want coal we don’t want nuclear our gas fired power stations are being built and owned by the French, you’ve only to look at the toll on the Severn Bridge to work out how hostile the French are to us to know that energy prices will go through the roof. We have an aging infrastructure that has been badly let down by privatisation. Who made money on privatisation put your hand up; we were sold something we owned at best made a couple of bob but we have been paying for it ever since. Our aging gas infrastructure will be the next thing to go down, much of it laid to carry corrosive town gas back in the 1950s. Fuel poverty is achieved when 10% of a household’s income is used to heat the house. By 2020 the majority of us will be paying 25% of our household income to the energy companies. The banks have robed us and its now the turn of the energy companies both of which are backed by the government. As fuel prices double every 4 years by 2020 we will be paying the power companies over 50p/kW that will make the current feed in tariff look less significant. The feed in tariff will benefit all of us as it will help to lessen our dependency on foreign fuel an aging infrastructure and corrupt energy companies.
Posted by Phill Sylvester, 29 Oct 2011
Fuel Poverty
Take from the poor give to the reach same out Tories what about fuel poverty and how about making it clear how much tax this does not cost also how much the Energy companies pay to top management from the huge profits they make
Posted by Morley, 29 Oct 2011
Latimer Alder
Latimer, put your spliff out and go and get some exercise. When your mother finds out you've been drinking alcohol with your imaginary friend she'll be very upset.
Posted by Aileen O'Connell, 29 Oct 2011
Yada yada yada
Here's a quick transaltion of all thise squeling about this cut. We want our bribes back! We want everybody else to pay for us to get rich! Our money-making scheme is so mind-bogglingly economically stupid that nobody in their right mind would intsall solar panels without an enormous bribe from the general public. And we want to harvest those bribes big time. Keep the bribes coming! ....yada yada yada I have absolutely no sympathy - and a certain amount of glee at this development. Those who live on scams usually get ciaught in the end.
Posted by Latimer Alder, 29 Oct 2011
Unfair Cut
If the government had any long term vision they would continue to back the solar industry, but to announce such a drastic cut at such short notice is unfair, both on people wanting renewable energy at an affordable price who would have invested in this scheme and more so on businesses many of them SME's that have now invested heavily in setting up for solar fitting. Not only does this send out a message that the government are guilty of duplicity in their support of both renewable energy and SME's trying to create new jobs and long term financial security. If there was only ever to be a finite window of opportunity for this scheme it should have been clearly stated at the out set and not as some sort of knee jerk re-action to reduce government spending. If this cut is to be enforced then the decent thing would be to phase in the tariff reduction over a longer period to give those companies who have just set up enough time to recuperate their set up costs. Given the choice I know where my sympathy lies and would prefer to finance this scheme from my taxes than bail out the bankers!
Posted by SK, 29 Oct 2011
Double standards
The typical easy target. Lets make people who are trying to be green and rebuild the economy and those who are showing some entrepreneurial spirit suffer. If we had been in the financial sector we would be safe wouldn't we
Posted by mak, 29 Oct 2011
Bring it on?????
What absolutely staggers me is that every time there in an article in the media on PV as a renewable energy source are the number of tolls that crawl out from under their stones and make the most unbelievable ill informed bigot comments about PV. If these people were right then there are millions of very stupid Germans who have installed 20GW of PV let alone the rest of the world. GET INFORMED. ITS ALL ON THE WEB then commment.
Posted by sunpower, 29 Oct 2011
Pain and Glee both!
Most customers have bought solar in good faith believing that rates are set in stone for 25 years -if rates are cut for existing instals - they have been mis-sold!! May well have valid refund claims against government or solar companies.Let the claim company text messages begin! One good thing to come out of slashed rates would mean that the highly priced ex double glazers selling 4kWp systems for over £12k will have to close down their expensive call centres and cull their overpaid ferrari driving 'salemen'. YAY!!!
Posted by Laurence- MD Solar Company in Wales, 29 Oct 2011
Comedy Gold
i Solar PV is sustainable once installed, its the installation costs that prove to be prohibitive /i Did you type that with a straight face, C Woods?
Posted by DocBud, 29 Oct 2011
Support the campaign
The campaign is "Cut Don't Kill" Our Solar Future. It recognises that PV equipment costs have come down so the FiT incentive should come down to reflect this. But the rate of cut leaked, if true will threaten the majority of the 25,000 jobs created since April 2010. Check out the campaign website www.oursolarfuture.org.uk for support materials and the soon to be announced Day of Action
Posted by Chris Witte, 29 Oct 2011
Bring it on
An 'industry' that only exists because of a huge subsidy squels because the rate may be coming down from obscene to merely extremely generous. I'm sure that arching on Downing Street oto draw the general public's attention to teh huge amounts of their money diverted to these subsidy farmers is exactly the way to gain public sympathy in times of austerity. So I will be applauidng them all the way. Turkeys voting for Christmas spring to mind. Wih luck he groundswell of public opinion will be enough for Cameron to reduce the subsidy to zero, and then we will all see the economics of the solar scam laid bare.
Posted by Latimer Alder, 28 Oct 2011
The Energy Scam
The energy companies are making massive profits and have been polluting for decades. They can easily afford to finance the feed in tariff without surcharging customers. Weren't we told last week that they are making £125 a year out of every one of us when they were only supposed to make £25? The government could put their foot down on this. Presumably they are as scared of the energy supplers as they were of Rupert Murdoch. 25,000 people paying tax - and bank charges! - is better than 25,000 looking for work. Mind you - tell that to Bombardier and BAE redundant employees. This government seems to consistently put a lot of effort into destroying skilled jobs. I think the most depressing thing about all this is that you can't see how we are ever going to get out of this recession because every time something positive happens the government kills it off. The solar pv suppliers knew that they had a good enough revenue stream to build high quality companies working at the high standards demanded by the MCS scheme and all the electrical and building regulations. Limiting their revenue, even if it doesn't put them out of business, will inevitably lead to corner cutting and a drop in standards. I don't think the politicians understand what they are doing. If they do it is very very discouraging.
Posted by Edward Brooke, 28 Oct 2011
To consider
25000 people contributing in the region of 25.000.000 to the treasury through paye. Benefit payments to them 35.000.000(?) at best. Fits are not being paid through taxes. Electricity prices rising at 18%. Being held hostage by Russia, France and Germany on fuel prices to create electricity. Fair enough, current levels if fit tariffs are too high at the moment. Would I pay an extra few pounds on my electricity bill to make sure we can level electricity prices for the future? YES. One of the very few sectors that is able to absorb many of the unemployed. Short sighted government making a very bad decision which will cost the tax payer more money!
Posted by Markus, 28 Oct 2011
To consider
25000 people contributing in the region of 25.000.000 to the treasury through paye. Benefit payments to them 35.000.000(?) at best. Fits are not being paid through taxes. Electricity prices rising at 18%. Being held hostage by Russia, France and Germany on fuel prices to create electricity. Fair enough, current levels if fit tariffs are too high at the moment. Would I pay an extra few pounds on my electricity bill to make sure we can level electricity prices for the future? YES. One of the very few sectors that is able to absorb many of the unemployed. Short sighted government making a very bad decision which will cost the tax payer more money!
Posted by Markus, 28 Oct 2011
Good Job???
pjk, whilst you are entitled to your opinion on the FITs you are obviously oblivious to the fact that its not paid for by taxes, its actually by surcharges on energy bills. Solar PV is sustainable once installed, its the installation costs that prove to be prohibitive, maybe you should google the technology to understand what this all about before shouting out to the world about your support for the governments u-turn on the FITs which is to provide market stimulation on a technology which is growing steadily.
Posted by C.Woods, 28 Oct 2011
Good Job!
The government should completely remove the FIt If solar panels are so wonderful they should stand on their own merit, not my taxes! P
Posted by p j k, 28 Oct 2011
Cut dont Kill?
Is that really the right name for a campaign? needs re-thinking!
Posted by Russell Eggar, 28 Oct 2011