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The goverment is proposing to cut the FIT rates for solar PV
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The company's MD, Marc von Briel, is calling on everyone affected by the changes to lobby ministers and MPs. He sees the proposals as being ill-thought-out and says that they represent a body blow to an industry which only came into being in the first place at the behest of government. The proposals are, in his view, a betrayal both of the industry and of the government's green credentials and will result in the loss of thousands of newly-created and desperately-needed jobs.
Questioning the minister's statement that the changes would put 'the solar industry on a firm footing', von Briel said: "In fact, the very opposite is true: such a large and more or less immediate reduction in FTT payments – they are being effectively halved – will kill off the widespread uptake of solar PV energy with grave implications for employment and for solar businesses all over the UK. Redundancies are already being openly discussed. What's more – and this is something the coalition would do well to consider – the changes will fatally undermine confidence in all future government-led environmental initiatives such as next year's Green Deal. For the government to lose people's trust in this way is a serious own-goal especially when the UK is legally bound to achieve tough CO2 emissions reductions targets by 2020.'
He is also sceptical about the new requirement that a home achieves an Energy Performance Certificate Rating of level C before a PV installation becomes eligible for FIT payments: "Far from being 'a massive opportunity' for solar firms, this will simply act as a further disincentive to buy. Combined with the longer payback period, it will lead customers to conclude that the whole exercise is too expensive and too complicated – especially now that government has shown itself so ready to move the goalposts to the customer's disadvantage."
There is particular sympathy for customers who have put down large, partly non-refundable deposits for systems that will not be able to be installed and registered before the deadline of 12th December: "I'm afraid that they have, effectively, been conned. They signed up to a deal which, through no fault of anyone in the industry, will not now deliver the returns they were promised. This is very unfair and will cause, quite understandably, huge resentment."
He adds that the proposal to reduce the FIT payment for multi-location installations will choke off local authority schemes because they will no longer be financially viable and that the result will be even less business for the industry and more tenants pushed into fuel poverty, the very opposite of the stated aims of the government's social policy.
According to von Briel: "The only beneficiaries of this policy change are likely to be importers of inferior cheap modules with enormous carbon footprints, which will be specified solely on the grounds of cheapness. Everybody else, including MCS installers, industry suppliers and manufacturers are likely to lose money and possibly go out of business."
If the changes go ahead unaltered, von Briel is convinced that the UK solar industry will be so badly hobbled that it may take a very long time to recover. He is urging everyone affected by the proposals to write to ministers and their MPs urging a re-think: "The consultation period has already started and submissions must be in by 23rd December. It is up to all of us to argue our case and to convince ministers that they need to look again at the very strong case that exists for supporting solar energy more fully."
What do you think of the proposed cuts to the FIT rates? Have your say by emailing lyoung@hamerville.co.uk
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