Energy Saving Trust reaction to changes in solar energy subsidies

Philip Sellwood, Chief Executive, Energy Saving Trust, said:

“Our calculations show that, given current prices for this technology, under the new proposed Feed-in Tariff rate a standard solar PV installation is no longer cost effective for householders.  Based on the new rate, the price of a typical solar panel installation will need to fall by over £800 for an investment in this technology to be cost-neutral for a typical home.  

“We are as keen as the government to see solar panels being financially viable for homes without the need for the subsidy. But these cuts come to soon and are too sharp and there is little incentive now for the consumer.

“The Feed-in Tariff has been extremely successful in driving the uptake of solar panels in the UK which has helped PV prices to fall by nearly 70 per cent over the last five years.

“There has been a real solar revolution with more than half a million homes fitted with panels. These homes have lower electricity bills and emit less carbon and receive regular Feed-in-Tariff payments that help pay back the investment in the panels.

“We are also concerned about the impact on business. In the UK we have around 3,000 accredited businesses installing Solar PV – all will now be unsure of the future of solar following this damaging blow. Reducing the rate so drastically leaves installers little time to diversify and to stay afloat during this period of uncertainty.”