Monday 10 September 2012

DECC’s solar cuts “too big and too soon”

DECC’s new proposal to cut tariffs on solar installations are “too big and too soon”.

That’s the view of the Solar Trade Association (STA) who have slammed last week's Government’s consultation on solar support. DECC have proposed a reduction for large-scale solar installations from 2ROCs/MWh to 1.5 ROCs/MWh from March next year.

But the STA say that reduction is far too much. Paul Barwell, CEO of the trade body said: “We have delivered really exceptional cost reductions in the solar industry, yet we once again face having the rug pulled from under us. The proposed 25% cut is too big and too soon.

"We understand DECC have concerns about how solar will interact with other renewable technologies under the RO and how it will influence the budget but deliberately under-rewarding solar to curtail the industry is definitely not the solution. This is not a fair proposal and it is not in the public interest to constrain a cost-effective technology.”

ROCs or Renewables Obligation Certificates are subsidies given to companies for generating green electricity. The STA claims DECC had challenged the solar industry to cut costs to a level where it could expand under 2ROCs to make solar competitive with other renewable technologies. They are particularly concerned about mid-sized schemes for which the solar market has barely begun.