UK SOLAR ON THE VERGE

Solar energy industry may be on threshold of an exciting era; This year we must use our subsidy more wisely, and if industry, NGOs and government pull together, solar will shine in 2012
Greg Barker, 9 January 2011 (UK Guardian)

"This has been the most challenging few weeks to date in the life of the nascent UK solar sector. After a short burst of unprecedented sales growth, with installations more than doubling between June and October, we had to intervene very quickly indeed to ensure the entire subsidy for this and other exciting micro-generation technologies supported by feed-in tariffs, wasn't swept away by excessive returns for a lucky few…

"…[I]t is easy to see why solar is so popular. It is reliable, intuitive, easy to install and is a great solution for people worried about rising electricity bills or wanting to do their bit to fight climate change. But with the price of solar falling quickly in a very short period of time, the subsidised tariff payments were suddenly offering new customers financial returns completely out of step with other green technologies or government-backed schemes. Double-digit yields, index linked and guaranteed to be paid at that rate for 25 years."

click to enlarge

"In the current financial climate when interest rates are at record lows, it really was too good to be true. Unfortunately the scheme the coalition inherited just wasn't designed to adapt to these dramatic price falls.

"This government believes in solar. We see its huge industrial and employment potential. We get the strong case for smart, well-targeted subsidy, to help early deployment and build a thriving UK sector. However that is not the same as a blank cheque. And we are equally determined to stand up for consumers alarmed by rising energy prices and have shown ourselves willing to take action to curb rising energy bills…[T]he challenge for the new year is to make sure we use the remaining subsidy far more wisely…"