The UK Government threatens to be sanctioned by the European Commission should the government implement its plan to slash feed-in tariffs. The Commission was compelled to make this announcement on January in response to the Priority Question filed by Green MEP for London. The Commission further said that legal proceedings will be taken if the UK pursues the cuts which threaten the progress of the government’s binding EU goal on renewable energy.
Meanwhile, the UK government continues to challenge a judge’s earlier ruling that bans the government from implementing its proposed cut on feed-in tariff subsidies on any installations finished after 12th December 2011. The planned reduction applies on all households and communities that have set up solar panels after the said date.
According to stakeholders, the government’s proposal would have a chilling effect on the entire renewable energy industry but more particularly jeopardizes thousands of workers. In fact, the looming implementation of this mandate has caused some people to think twice whether they will find a tradesman to install a solar panel. Considering the costs of having these technology installed and the reduction in subsidies, homeowners and communities might back out on their plan.
However, a recent development might spur customers to find a tradesman to install solar panels. The court has mandated that the 43.3p price must be reinstated by the government. This rate will be in effect until the 3rd March unless the government has the Supreme Court to rule otherwise.
Over the next 5 weeks, it is expected that many consumers will book a solar panel installer so that they can take advantage of the higher rates. Take note that the government provides a guarantee on Feed in Tariff scheme, that the price during the installation will be in effect for the next 25 years. Customers who have installed these renewable energy sources within the duration of the higher price, a 3-6 year return of investment is almost certain.