Thursday, November 3, 2011

Isra-Mart srl: Scottish government slams proposed solar incentive cuts

www.isramart.com


The Scottish government has added its voice to the growing clamour for a rethink on the coalition government's proposed cuts to solar feed-in tariff incentives.

Energy minister Fergus Ewing today issued a statement criticising both the proposal to halve the level of support for solar installations and the move to impose the changes within six weeks.

"Cutting the feed-in tariff so sharply, and with so little warning, will have a devastating impact on families and businesses across Scotland," he said.

"This change will be a body blow both to the blossoming Scottish solar industry and to thousands of households across Scotland that will lose their chance to escape from fuel poverty."

According to figures from the Scottish government, more than 1,300 solar installations were completed in Scotland in September alone.

However, Ewing warned that the government's proposed cuts will put a raft of future projects at risk, including Glasgow Housing Association plans to install panels on 500 homes and Dundee City Council's proposals to fit panels on 1,000 homes.

"Companies with full order books that have invested in recruiting and training new staff, including many I have visited in the past few months, will find the carpet pulled from under them as the numbers on which they have based their business plans are changed, suddenly and without warning," he said.

"Families in social housing, who were expecting to be able to live without dreading their electricity bill, will be deeply affected by this change."

He added that he had written to energy and climate change secretary Chris Huhne, urging him to "reconsider both the speed of these cuts and how he will prevent those in most need being hit most".

BusinessGreen has also learned that the Environmental Audit Committee of MPs will this afternoon issue a call for evidence on the proposed changes to feed-in tariffs and the likely impact on the industry. The session could result in either a full report on the controversial changes or publishing of the evidence gathered.

The government has consistently maintained that the proposed cuts are necessary to halt the current rush of solar installations, which it claims are threatening to push the feed-in tariff scheme overbudget, resulting in higher energy bills.