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Back Environment The News Knee jerk cut in tariffs will kill solar industry

Knee jerk cut in tariffs will kill solar industry

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A knee jerk cut in feed in tariffs will kill the solar industry, according to Alex Lockton, managing director of solar installation company Freesource Energy.

The Feed in Tariff cut is expected to be announced imminently, with a 50 per cent cut being widely reported today (Thursday October 27).

“We can just about live with a 50 per cent cut in the feed in tariff. The cost of solar panels has come down since the tariff was introduced last year, so we recognise the need for a reduction in the subsidy.

“However, the industry needs time to re-adjust if we are to minimise job losses. It takes time and money for businesses to re-train their workforces if they are to expand into new sectors and technologies, and extricate themselves from long-term commitments.

“If the cut comes into force in anything less than 10 weeks, it will be a death sentence for many solar companies. It will turn one of UK PLC’s greatest business success stories in the last 20 years into one of the most tragic.

“We urge Government to take the only responsible course of action – give companies time to adapt their business plans. If not, large scale job losses across the industry will be the inevitable outcome.”