The NFU has said it will respond to the Department of Energy and Climate change consultation on the forthcoming cut to solar energy tariffs before the closing date of 23rd December and has asked farmers to contact their MPs to express their disatisfaction and propose alternatives to the sudden cuts.   

image expired

The union last month said it intended to show government officials that farmers are "exasperated with the Government's mixed messages on renewable energy." NFU representatives have said many farmers will face difficulties for their investment plans as a result of the feed-in tariff cuts.

On 31st October the DECC announced details of its second round of cuts to solar PV tariffs. The severe cuts will impact upon all future solar projects which had remained untouched in the 'fast-track' review this summer, except for those which will be operational by 12th December. Any schemes completed after this date will receive normal feed-in tariffs until 1st April, when they will receive the revised tariffs.

The NFU said government proposals, which will essentially halve the tariffs below 50 kilowatts, will impact harshly on farmers’ returns; according to the union’s figures, the return on investment into solar PV will drop from around 10-12 per cent to 5-6 per cent.

As well as reducing most of the solar FiT rates by more than 50 per cent and bringing the deadline forward from 1st April to mid-December, the consultation proposes that multi-site installations will receive an additional 20 per cent reduction.

Furthermore, new solar installations in the UK will be eligible only for domestic properties with an energy efficiency rating of 'C' or better – a measure that is thought to exclude up to two-thirds of Britain’s present housing. Details of how to apply this to non-domestic properties have yet to be finalised.

The NFU is encouraging its members to contact their MPs and offer feedback on the union’s own draft response in an attempt to secure more favourable terms or extend the 12th December deadline. In its draft proposal, the NFU said, "This second emergency review of solar Feed-In Tariffs sends a further confusing signal about the Government's supposedly ‘green’ intentions."

However, during the summer, there was speculation that the government cuts could be even worse; at the Solar Power UK conference in Birmingham in late October, industry leaders expressed fears that the entire scheme could face suspension while DECC deliberated its budget or suggested new installations could face a cut across the board to just 9p/kWh.