The Con Dem Government has announced that it is going to cut the subsidy for solar power by half for new installations from 12th December. Solar panel makers and solar panel installers are concerned that the cut may lead to the loss of thousands of jobs and a reduction in investment in this form of renewable energy. This decision also means that consumers who register for the scheme after that date (even if the deposit has already been paid) will see their return halved.
The Westminster government has launched a fast-track consultation on the change, which it says reflects falling panel prices. The proposed new tariff of 21 pence, which is down from the current 43p, will come into effect from the 1st April 2012 and be paid to anyone who installed their solar system after 12th December 2012. One interpretation of this is that the last few Westminster governments have just not really been serious about energy security and developing secure sustainable energy resources.
Sadly it certainly looks like the Con Dem Government is about as serious about developing renewable energy resources, as was the previous New Labour Government. That said, there may be other motives, perhaps no one (in Government) really wants micro-generation schemes to work because then we (the consumers) will have less need of the Big Six and of course profits / share prices and dividends could be hit, and we (sorry they) would not want that it might upset the chaps over dinner.
This decision certainly does seem to be a slap in the face for this sector of the renewables, let alone any consumers and customers seeking to develop sustainable energy. One interpretation could be that this decision will make life just that little easier for the energy cartel members. That aside, we appear to have a Westminster Government that's not serious about developing sustainable energy and that's one luxury that none of us can afford.
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