After months of speculation about when and by how much the tariff would be cut, the press notice on the DECC website shocked the solar industry by shortening the timetable for the cut in tariffs from April 2012 to December 2011, meaning that thousands of customers who have signed contracts to order solar PV systems will not have their installation complete in time to claim the higher tariff. Greg Barker implied that the cuts were to ensure that the solar industry survived, stating that these actions would put the solar industry on a “firm footing” and prevent it falling “victim to boom and bust”.
As we reported yesterday, since the FIT has long been considered to be the biggest motivation for consumers to purchase solar PV systems, the perception has generally been that the change to the tariff will be damaging to the renewable industry, however some players in the sector are more optimistic.
Solar installer, BritishEco, for example believes that there is still plenty to be hopeful about for those wanting to invest in renewable energy. The company’s Managing Director, Tony O’Connor, describes the future for the solar PV industry as being “healthy and sustainable”, explaining that: “Looking at the new tariff levels and taking into account the lower panel prices, BritishEco are still able to provide solar PV systems with a rate of return in excess of 10% - which we believe to be a great investment”.
The renewable energy industry was rocked by the date change for the FITs, but it came as no surprise to O’Connor that the tariff was lowered. “We recognised that the FITs needed to be adjusted downwards to reflect significant reductions in the product costs,” Tony O’Connor states. “And we are still committed to providing our customers with systems that will make them a good rate of return, as well as reducing our reliance on fossil fuels and combating climate change. The future is still bright for the Solar Industry as far as we are concerned.”
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