100 leaders of the solar power industry signed a letter to the Times saying that the planned cut – from 43p per kWh to 21p per kWh – will “kill the UK solar industry”, Building reported.
Environmental charity Friends of the Earth has threatened energy minister Greg Barker with legal action unless he reverses the plan and Green MEP Jean Lambert has asked the European Commission to investigate if the cut will threaten the UK’s ability to meet EU targets on renewable energy, Construction News reported.
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Lambert has tabled a priority question to the European Commission on the effect of the cut on the UK’s ability to meet its obligations.
She said that the tariff has been responsible for the creation of more than 22,000 jobs and almost 4,000 new businesses.
“If the UK fails to meet its agreed target by 2015, the European Commission could impose fines running into millions of pounds – a criminal waste of public money in these tough financial times,” she said.
Since the cut was announced six large councils have said that they are reviewing schemes in their areas and Mears has announced it is withdrawing from the solar photovoltaic market.
Solar panel fitters say the feed-in tariff cut will be especially damaging because it leaves only six weeks – until 12 December – for people to install panels and claim the current tariff. The firms say the change will put them out of business because it will kill consumer demand.
Solar Europa director David Hawkins has cancelled a programme of opening regional offices, which would have created thousands of jobs, to install and service panels over the next 25 years. “We had a programme to create 600 jobs in each major city to fulfil orders. We were looking at installing systems in 400,000 social housing homes over five years,” he said.
The Local Government Association has written to Energy Secretary Chris Huhne to urge him to delay the proposed cut until the end of the financial year.
LGA Environment Board chairman Cllr David Parsons said: “To expect councils and the solar industry to deliver projects and have them registered by Ofgem within six weeks is unrealistic and unacceptable. As a result many projects will now be stopped immediately. The costs incurred by councils as a result of this could run into hundreds of millions of pounds.”
