08 Apr 2011 10:04:09
REA: FIT changes will bring solar industry to a grinding halt
Changes to the Feed-in Tariff scheme (FITs) announced earlier in the year will bring the solar industry to a "grinding halt", according to the Renewable Energy Association (REA).
The government announced in March the tariff levels for any solar installation with a generation capacity of over 50kW will be slashed, to much anger from the solar industry, in an attempt to deal with what it perceives to be the threat posed by "super-size" solar farms.
Ray Noble, solar photovoltaic specialist at the trade body, said the economic implications of the decision to scale back support could be huge.
"A lot of European companies came into the country based on the FITs, and now they have to close their doors and make people redundant, because it's now clear that the minister will only keep to his original budget, which is limited to domestic installation," he explained.
Mr Noble went on to predict that the government could in fact run out of money for the FIT scheme as early as the spring of next year, due to complications surrounding the figures used for budgeting for the FITs in the Comprehensive Spending Review.
This would mean the "industry will come to a grinding halt", he concluded.