The government’s budget for the solar feed-in-tariff (FIT) has been reported to be £31m in the red. Latest figures show that the £94m budget for 2011-2012 for solar subsidy is already overspent by 30%. This comes after the government’s controversial decision to halve the FIT which is being challenged in the courts.
Shadow energy secretary Caroline Flint said the government should have set up a board of industry leaders to help make decisions on policy changes on the FIT but one is still not in place. ‘’The fact that such a board was never set up has been the reason scaling down the tariff has failed and caused such anger and frustration,’’ she said.
In December 2011, it was ruled out in court that the government’s plans to cut FIT were illegal as eligibility for the higher rate ended on 12 December 2011 before the consultation on the plans closed on 23 December. There is set to be an appeal against this decision in January 2012.