The UK government’s announcement of a review into a feed-in tariff (FIT) scheme aimed at supporting the development of small-scale renewable electricity generating systems has drawn criticism from the clean energy sector.
UK Secretary of State for Energy and Climate Change Chris Huhne has announced the review because he is concerned about the impact that large-scale solar photovoltaic (PV) installations could have on the scheme.
Critics say that the review of the scheme, which only started in 2010, will create uncertainty for companies operating in the sector. The Renewable Energy Association (REA) told The Guardian newspaper that schemes to install rooftop-mounted PV panels on schools and hospitals could end up being scrapped as a result of the review.
The government has set aside £400 million for the feed-in tariffs, but this will be cut by ten per cent by 2014-15. Given the tight fiscal situation, the government needs to take “a more responsible and efficient approach to public subsidy, including where this subsidy is funded through energy bills,” said Huhne.
According to Huhne, several large solar installations have already received planning permission and projections indicate that there could be many more in the planning system.
“I have become increasingly concerned about the prospect of large scale solar PV projects under FITs, which was not fully anticipated in the original scheme and could, if left unchecked, take a disproportionate amount of available funding or even break the cap on total funding,” said Huhne.
Some 20 000 solar PV installations have already been registered under the FIT scheme.
