Isra-Mart srl : Solar industry latest to rally round feed-in tariffs

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Representatives of the solar industry are the latest to write to government in response to signals coming out of the Treasury's spending review that feed-in tariff rates may be cut.

The tariffs have undoubtedly encouraged development since their introduction in April, and news that the UK's first solar power plant was granted planning permission last month sparked talk of a "gold rush".

But since the Comprehensive Spending Review (CSR) began, rumours have circled that tariff levels may be cut or altered before the scheduled 2013 review and a range of organisations, including business leaders, the TUC, the Committee on Climate Change and green groups, have written to defend the rates.

Last week's letter ploughs the same furrow, warning that any change to the tariff would shake investor confidence and damage the nascent solar industry's expansion ahead of steep solar power tariff reductions, scheduled to start in 2012.

Brought together by industry group We Support Solar, cross-party MPs (including two former energy ministers), business leaders and environmental campaigners are all signatories of the letter, which argues that with the right support, solar power will break even with the price of fossil electricity within a decade, creating jobs and a valuable manufacturing sector.

"The solar power industry is investing right now to establish a viable UK sector," it reads. "We urge you to please stand by the three-year take-off and ensure stability for the industry until 2013."

Raising the UK's targets for solar capacity would also help, the letter says, citing Germany's installation of 3.8GW of solar power in 2009, more than the anticipated 2.7GW total for all UK solar power installations by 2020.

"We urge you to increase the UK’s modest 2020 ambition for this very popular and reliable technology," it says.

Leonie Greene, campaign manager at We Support Solar, added: “I’m hearing astonishment from all kinds of people that 'the greenest government ever' could even contemplate rocking the boat on what is surely our last chance to catch up with the huge solar revolution happening around the world. There may be specific issues to address, but the UK really can’t afford wobbles for the whole sector just six months in."

The Treasury has refused to comment until the results of the review are known on 20 October.