Are solar farms threatening feed-in-tariffs?

Feb. 7, 2011 - PRLog -- A government announcement is expected this week on the fate of the feed-in-tariff (FIT) scheme, with a review of the policy, originally planned for 2012. This has been brought forward in response to an increasing number of solar farms being granted planning permission.

Through the feed-in-tariff, the government pays homeowners, businesses and organizations, including schools and community groups for the electricity they generate through small-scale green energy installations such as solar panels.

When it was set up on 1 April last year, feed-in-tariff were introduced as a green subsidy that would encourage take-up of renewable energy systems and provide communities with self-generated green power and reduced energy bills. What no one predicted is the emergence of large-scale solar farms. According to Cornwall council, more than 60 domestic and foreign companies have expressed an interest in developing solar farms in the county.

According to critics, the worry is that large-scale solar farms will use up money from the fee-in-tariffs pot, meaning less will be available for smaller-scale, community-based renewable energy schemes. The government's spending review in October introduced a limit on feed-in-tariff payments. The hope among those involved in community schemes is that the review will make solar farms a separate case. However, some stakeholders have expressed concern that the review could damage the burgeoning PV industry.

The government needs to get on top of this issue and clarify how feed-in-tariff is going to proceed, but it's vitally important that the review does not undermine confidence in the PV industry and undermine investor confidence in the entire micro-generation market.

However, Adrian Lea, manager of planning and regeneration at Cornwall council, said "To me, the purpose [of the feed-in-tariff] is to develop a solar PV industry, to bring forward renewable energy infrastructure within the UK, and to meet renewable energy targets. In terms of solar panels, I don't think you're going to do that on domestic roofs because the rate of installation, while highly commendable, is pants, quite frankly."

Also, the government confirmed in the spending review that the feed-in-tariff scheme would be cut by 10% (£40m) in 2014 and 2015.

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