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Landlords to lose out as government scraps solar subsidies
Social landlords are set to lose access to subsidies for the installation of solar panels after the government chose to end the Feed-in Tariff (FIT) scheme.
The subsidy for domestic green energy has helped more than 800,000 homes install solar panels, with a number of social landlords among those to have taken advantage of the scheme.
In announcing a consultation on its proposal to end FITs, the government pointed out that the capacity of renewable electricity generation had quadrupled since the scheme was introduced in 2010, standing at 38.9GW at the end of last year.
Meanwhile, the cost of installing solar panels without subsidy has tumbled.
In its consultation paper, the Department for Business, Energy & Industrial Strategy said: “Since 2010 our support has driven down the cost of small-scale low-carbon electricity generation significantly. As costs continue to fall and deployment without direct subsidy becomes increasingly possible for parts of the sector, it is right that government acts to ensure continued value for money for bill payers over the longer term.”
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However, the renewables industry has expressed disappointment at the decision, as well as the government’s delay in making the announcement.
Emma Pinchbeck, executive director at RenewableUK, the trade body which represents the sector, said: “Today’s confirmation that there will be no replacement for the Feed-in Tariff is a major blow to small-scale renewables in the UK. The government has known the FIT would be closing for three years and the fact that they are only now beginning the conversation about new policies is far too little, far too late for many companies.
“Small-scale renewables technologies are a vital part of creating the more local, smart power networks that will be central to the UK’s future energy system. Companies in the sector have helped tens of thousands of homes and businesses to cut their energy costs, and have grown into a thriving industry that exports around the world. They have been waiting, at great cost, for the government to issue today’s consultation for over a year.”
