DECC plans consultation for feed-in tariff to mirror German system


Following its unsuccessful appeal against the High Court’s ruling over cuts to the feed-in tariff, the Government has announced a solar consultation that could see the UK’s scheme follow Germany’s lead.

It’s fair to say that there is a reasonable amount of uncertainty buzzing around the solar industry. And now, three months of dispute over the Government’s initial decision to cut incentives have forced it to rethink its strategy, and possibly adopt a German model.

Blue & Green Tomorrow has highlighted the success of the German feed-in tariff scheme before, which heavily promotes local energy ownership.

Every six months in Germany, subsidy levels are evaluated, and are reduced or increased depending on the amount of installations in that period. The more installations, the lower the subsidy, and vice versa.

We intend to announce the results of the solar consultation by February 9,” a Department of Energy and Climate Change (DECC) spokeswoman told BusinessGreen.

At the same time we’ll also put forward proposals to introduce a cost control mechanism for solar PV“.

The DECC announced that it would be slashing subsidies in its feed-in tariff (FIT) scheme back in October.

This lead to uproar in the sector, with Friends of the Earth one of three high-profile groups to have taken legal action over the cuts. The High Court eventually deemed them legally flawed.

The Government appealed this ruling, subsequently lost, and now the solar industry finds itself in disarray after the British Photovoltaic Association (BPVA) backed the initial appeal.

Another Government appeal, this time to the Supreme Court, is also planned, as the uncertainty in the sector continues.

This shouldn’t put you off, though. Now still remains the ideal time to invest in renewable energy, purely because if you act now, you’ll receive the higher subsidy.

Whilst there are still financial incentives to make your home renewably-powered, it makes sense to make use of them.

Good Energy provides 100% renewable power to homes, so get in touch with them if you’re interested.

The ideal scenario would be that people wouldn’t need monetary encouragement to invest in renewable power, but once the feed-in tariff scheme stabilises, we might just see a shift in perception from the yet-to-be-converted bunch.

If you’re one of them, but are intrigued as to the possibilities of renewable power, ask your financial adviser. Alternatively, fill in our online form and we’ll connect you with a specialist ethical one.