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21 Mar 2011 12:03:02

Government slashes FiT support for solar power

Government slashes FiT support for solar power
Support for solar installations of greater than 50kW has been slashed following the government's review of the Feed-in Tariff scheme.

The Department of Energy and Climate Change said the rate will be cut for all solar panel projects deemed to be "larger than microgeneration size", claiming bigger installations are taking cash set aside for homeowners.

It argued 169 MW of large-scale solar capacity has been planned, which would require the same level of support as installations on 50,000 homes. No installations of the size the government considers to be large scale had been expected until 2013.

Climate change minister Greg Barker said: "These proposals aim to rebalance the scheme and put a stop to the threat of larger-scale solar soaking up the cash."

Under the current system 32.9p/kWh for is paid for installations of 10kw to 100kw, while 30.7/kWh is paid for developments between 100kw and 5MW.

The new rates will be 19p/kWh for 50kW to 150kW, 15p/kWh for 150kW to 250kW, and 8.5p/kWh for 250kW to 5MW and stand-alone installations.

In her response, Gaynor Hartnell, chief executive of the Renewable Energy Association, said the move was "a retrospective change", which will do "untold damage to investor confidence". ADNFCR-1235-ID-800469506-ADNFCR

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