The Feed-in-Tariffs stimulated great demand for consumers to generate their own low carbon electricity, which was welcomed by businesses and home owners in financially difficult times. However with limited money available the surge in demand which the government didn’t anticipate lead the government to make the decision to cut the tariffs from 43p/kW 21P/kW in order to make the scheme sustainable.
This created a huge reaction from the solar PV industry and a legal challenge from Friends of the Earth and two other solar companies due to the decision to cut the tariff before the consultation had ended, (it is still not clear what the final outcome will be). This has sewed a seed of doubt in potential investors of PV, many employers had invested in training to take advantage of the opportunity and employing extra staff to meet consumer demand.
There is potential in solar renewable technology, but uncertainty in the industry is not appealing for those in the industry and potential installers. In recent months there has been great interest in solar renewable technology if the incentive is right, but of course FiT’s need to be sustainable and evidence shows that managing this financial incentive alongside the growing PV market is a balancing act.
