Solar Incentive Cuts Start 'Hampering' Consumers

Solar power projects completed after today could be less economically-feasible, because of the proposed governmental incentive cuts. The financial benefits could be significantly reduced, by up to 50%, starting next spring if the government carries on with its controversial plan.

The on-going consultation will end on December 23rd. At that point in time, developers will know for sure the value of the new rates available for photovoltaic systems, Business Green reports.

Therefore, manufacturers and customers still keep their fingers crossed and hope the government will abandon its disputed project.

Moreover, if the new regulations were implemented, the anticipated cuts would affect even the projects completed 12 days before the final decision. Most of the companies operating in this sector think the six weeks' notice is “ridiculous” and toys with their own profit margins.

It seems that not only major companies will be affected by this negative change. Voices affirm that a dramatic cut of solar power incentives can be translated into 20,000 lost jobs.

"I've got a list of companies where 80 per cent of staff are going through consultation for redundancy," states Howard Johns, chairman of the Solar Trade Association.

The disturbing timeline is one of the main reasons that has made several developers and clients give up their initial plans of exploiting the benefits of solar power installations.

Despite this fact, an official answer to this issue is expected at the beginning of next year, meant to annihilate all this uncertainly that has considerably lowered the popularity of renewable power coming from the sun.

The anticipated reduction would come as a natural response to the government's need of keeping the funding within its allocated budget, of £867m (€1bn/$1.35bn). A more suitable reason would be that a few officials question the potential of renewables, as alternative sources of power suitable to satisfy the current energy demand in the UK, according to Business Green.

Moreover, drastic cuts can influence the UK's commitment to reduce greenhouse gas emissions, by obtaining 15% of the overall energy from alternative sources, by 2020.

Even more alarming is the fact that only one in six people is actually aware of what his energy bill is hiding. Apparently, solar incentives add approximately £2 (€2.34/$3.12 ) to annual bills, according to a recent study commissioned by Sharp Solar.

"The general lack of awareness among UK energy bill payers... is hampering consumers, businesses and the government from making a rational, informed choice about the most appropriate rate at which to set the tariff," stated Andrew Lee from Sharp Solar.