Farming News - UK announcement on FIT reductions imminent

UK announcement on FIT reductions imminent

A spoksesperson for the Department of Energy and Climate Change has said that a consultation on the so-called deployment trigger for solar installations could be launched as early as next week. The trigger would introduce phased reductions in feed-in tariffs as uptake of solar installations increases.

 

The process would emulate the German model, which reduces subsidies once a certain number of installations have been completed. The DECC spokesperson told environmental business website Business Green, "We intend to announce the results of the solar consultation by 9th February, At the same time we'll also put forward proposals to introduce a cost control mechanism for solar PV."


The government has said its budget for the feed-in tariff is running low, and has expressed fears over its ability to pay next year at current rates. The proposed cuts to feed in tariffs, which are ostensibly intended to preserve the budget in response to the overwhelming number of people seeking to generate renewable energy, have caused deep consternation amongst farmers and in the solar industry.

 

The government has proposed it will re-evaluate subsidy payments every six months, as per the German system. The government’s plans have already been delayed as a high court ruling in December found the government’s plans to impose a cut-off date for higher subsidies which would come into force before the consultation period on the new rates had ended. The government plans to appeal this ruling.