Solar industry suggests ‘£1 solar rescue’ plan

The UK solar industry has put forward an emergency rescue plan for British solar which, it says, will cost just £1 per year on average household energy bills from 2019 – as an alternative to the government’s proposed cuts to the feed-in tariff for the technology. The government consultation on its proposed changes closed last month, with a final decision expected later this year.

The Solar Trade Association’s proposal introduces higher tariffs than those proposed by government, with higher and more flexible caps on the total amount of solar that can be deployed, and an improved mechanism to continually bring support levels down. The STA is asking for a total of £95mn over the next three years, a significant increase on the £7mn the government is proposing over the same period.

The STA hopes that its ‘£1 solar rescue plan’ will work for both the solar industry and the government, allowing a viable solar market to continue while giving the government the cost control guarantees it requires.

Leonie Greene, Head of External Affairs at the Solar Trade Association said: ‘Solar is close to grid parity, but it is not there yet. The government’s 98% cut in the overall budget for solar would derail the industry at the last hurdle and waste the millions of public investment in solar to date.’

The proposed cuts have already dealt a heavy blow to investor confidence in the market, says the STA. Three solar businesses have already gone into administration over the last few weeks, making over 1,200 people redundant. The STA has estimated that up to 27,000 jobs in the solar sector and its supply chain could be at risk if the proposed reductions in tariffs go ahead.