16 Feb 2011 12:02:01
FiT solar power review 'material risk to investors'
Signs that the government's Feed-in Tariff (FiT) review is already beginning to affect investor confidence have emerged, with the Matrix Group suspending its Clean Energy VCTs [Venture Capital Trusts].
The Department of Energy and Climate Change (DECC) announced its review of the incentives last week, saying it was addressing the concerns surrounding large-scale solar farms.
Members of the industry then reacted angrily after it was revealed the research would cover any installation capable of generating 50kW of power, which are largely defined as medium scale. They claimed the review could undermine investor confidence in the technology.
The Matrix Group has now sent a letter to investors saying it is suspending fundraising for its Clean Energy VCTs, claiming "the future of the FIT scheme is now uncertain, which is a material risk to investors".
It said its investments "were to be exclusively focused on relatively large scale rooftop solar PV" and it is contacting the DECC to receive clarification over whether "rooftop installations over 50KW would be treated differently from ground mounted" solar developments.
The timeframe available for completing projects given the early conclusion of the review was also said to be too small.